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Why do successful sales reps become self-employed?

Why would a successful sales rep who earns a good wage become self-employed? It's a very common question and one which often causes confusion.

There are a great number of reasons why many highly successful employed sales reps break away from paid employment to start their own sales agencies.

The following are some of the more common reasons as fed back to us by agents and sales agencies who use CommissionCrowd:

  • The sales representative is entrepreneurial and has the desire to run their own sales agency business.
  • The ability to earn far greater sums of money by representing multiple non-competing product lines or services at any one time.
  • The ability to sell into markets where they already have connections and industry contacts that have been built over a number of years.
  • The ability to develop exclusive territories and corner a Market for themselves.
  • The increased freedom that comes with running your own sales agency and working for yourself.

It's highly important for companies wishing to work in partnership with an outsourced sales force to remember that independent sales reps are self-employed and should not be treated like company employees when working on commission-only sales jobs.

Freelance sales reps typically incur their own expenses - especially when developing new territories - and will, more often than not, represent multiple company Principals at any one time.

A sales representative will rarely be able, or willing to dedicate all of their time to one company alone and it certainly can't be expected of them.

The reason for representing more than one complimentary product or service line is simple; the opportunity to cross and upsell more than one service at the same time is much greater and so are the commission rewards they receive.

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