Agency Management Success Factors

Manufacturers with productive sales agency relationships have several management traits in common. Any manufacturer seeking healthy partnerships with their agencies can adopt these strategies. The result is better strategic alignment that fosters great relationships between client and agency, leading to greater results. And these success factors fit on a single page!


Click here for FSMA's Success Factors Guideline


treat your sales agencies as integrated parts of your outsourced sales & marketing team

pay your agencies appropriate compensation for the services you expect

involve your agencies in marketing, sales, and promotional planning activity

provide top level talent that is well trained and competent to effectively manage your agencies

allow your agencies to manage their own resources to best support your line

use industry standard technologies such as EDI with your agencies

provide feedback and on-going support to your agencies – communicate promptly & professionally

understand the differences between a direct and outsourced sales group

consult with your agencies before making major changes to sales and marketing plans

establish on-going communications with agencies through an advisory council

financially assist your agencies local marketing efforts when appropriate


treat your sales agencies as a third party contractor that appears as an expense line on the P&L

micro manage the market level activity of your agency

pull scarce selling resources away for non-selling activity

penalize your agencies due to customer non-payment or other misbehavior

overburden your agencies with excessive administrative requirements

develop proprietary technology that forces agencies to juggle many systems

measure activity instead of results

think your agencies cannot manage your line along with other clients in your category

hire away your agency people

shift costs by deducting heavily from agency commission payments