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CAN THE SALES REPRESENTATIVE LIVE OUTSIDE OF ITS TERRITORY?
As a general rule, a sales representative has better relationships with its customers if it lives on the territory it represents. However we can find very good sales representatives that do not live close to their customers. A lot of expatriates have an in-depth knowledge of the indsutrial network of their native country. Some of them have worked in their native country before immigrating, and they have good relationships in the industry they worked for. Such people make very good sales representatives because it is easy to communicate with them for two reasons. First of all, they generally speak both your language and the customers' language, which considerably facilitates communication. And secondly they are located in your geographical area, with the same work hours you have. Same time zone means that you can get answers to your questions the same day, and you can call them at any time of the day. Before trusting such a sales representative that does not live on the territory it represents, one must make sure that the representative can sell efficiently on the territory it covers. As we said previously, your sales representative may have worked in the same industry as your company in the country it represents. It may have kept contact with key players and it may know exactly who may be a prospect for your business. The sales representative may call them from its office, but it will also have to visit its customers. The sales representative may live in your country for part of the year and on the territory it represents for the rest of the year. In this case it may be a very good sales representative, completely bicultural. It might also be that the sales representative works with a local company in charge of visiting customers locally. In that case, be careful to avoid double commissions: your sales representative will get its commission, the local company gets a second commission, and the final price of the product can be greatly superior to the initial price. The sales representative may also be working in your country for a trading company based in a given territory. This configuration may be the best case scenario, because it ensures that you have a good relationship with your representative, and that the local company has a good coverage of its clientele through its own local sales force. As a summary, it is possible for a sales representative to be based outside of the territory it represents, but it must demonstrate that it can be an efficient sales force on the territory it covers. Your representative must prove that it adds value. It cannot simply be one more intermediary which slows down communication with the final customer and which raises the final price of the product by getting its commission.
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