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Manufacturers' Representative

Definition: An independent sales agent who works on commission

Manufacturers' representative or rep, manufacturer's broker and manufacturer's agent are all terms used to describe independent sales agents who work on commission. Manufacturers' reps offer a practical, cost-effective alternative to a direct sales force for many growing companies. There are more than half a million reps in North America, most selling to targeted markets in select geographic regions. Reps know their markets well because they call on local buyers regularly and have established sound working relationships with them.

Using manufacturer's reps can provide you with many of the benefits of having a satellite office in the location--including knowledge of local markets and rapid access to large accounts--without your incurring large fixed costs. With reps, sales costs are always a fixed percentage of sales.