What will I be doing?

If you enjoy selling, but don’t want to buy or deliver products for resale, consider becoming a sales representative. Believe it or not, this is one of the most popular home-based businesses in the U.S.—more people choose this as a home-based business than any other.

A sales representative helps bring buyers and sellers together on behalf of the seller, typically a manufacturer or wholesaler. This can be done in person or by phone. A sales representative for a business computer software company, for example, may make initial contact with a prospect by mail and phone, then set an appointment to demonstrate the system at the prospect’s place of business. Another sales rep may never see customers face-to-face, working exclusively by telephone and mail with products shipped directly from the factory.

What will I need to start?

What could you sell to others? If you have experience in manufacturing or with a specific product, you could turn your knowledge into profits as a sales representative for a previous employer or even a competitor.

What contacts do you have? If you know lots of people in a specific field—dentists, accountants, car dealers, professional bowlers—you can find products and services that they need and help them buy.

So, you need both products and contacts. Of course, you also need selling skills that you can get with training or experience.

Who will my customers be?

Your customers will be manufacturers, wholesalers, retailers or consumers. Most sales representatives are actually manufacturers’ representatives, selling related products from a specific manufacturer. Others sell a variety of products handled by one or two wholesalers. Of course, your customers will also be those to whom you sell: retailers or consumers.

How much should I charge?

Sales reps get paid a commission that ranges from 2 percent for large-ticket (expensive) items to 35 percent or more for intangibles like radio advertising. So you won’t usually set the price of what you sell. It will be set for you by your client.

How much will I make?

A lazy sales rep will soon go broke. A knowledgeable and energetic sales rep can make a comfortable living of $50,000 or more a year. If you find the right product and company to work with, that number can go even higher. Because you don’t have to handle inventory, expenses are as low as 15 to 25 percent of your commissions.

How can I get started?

Learn how to sell. Take courses and read books on salesmanship. Be an expert on the products you plan to sell. Find qualified prospects and learn why and how they buy. Promote your business. Keep good records. Give better-than-average service.

Find manufacturers in the Thomas Register of Manufacturers, a multi-volume directory found at larger libraries.

Contact the Manufacturers’ Agents National Association (714-859-4040) for more information.

How can I use computers to increase profits?

Salespeople are typically paid a commission on what they sell. No sales, no money. That’s why you need to make sure you keep track of exactly what you sell, for how much, and your margin. You must also track business expenses that can lower your tax obligation. Sales software packages are available that can make the task easier. Read sales trade journals for ads that offer sales software.