The growth of a company depends to a great extent on how much sales it is able to generate. In order to grow sales and expand into new territories, companies need to appoint independent sales reps or sales agents in different regions.

Sales reps (short for sales representatives), also known as sales agents, manufacturers' agents, or distributors would represent the company in a particular territory and sell their products in order to make a commission or profit from the sale. They are extremely useful for companies of any size, regardless of industry. They help businesses grow and expand by taking on the responsibilities of seeking out new markets, finding interested buyers, and selling the product or service.

They usually have established connections with a set of buyers in their territory, and as a result they are in a good position to introduce new and relevant products to the same set of buyers. A single sales rep may represent the products/services of multiple companies. Companies may or may not give a sales rep exclusivity to sell their products in the rep's particular territory.

Using independent sales reps and distributors is a very cost-effective and efficient way for businesses to get their products into the market. Since they are not employed directly, businesses do not have to provide health benefits, pensions, or paid time off. Independent sales reps and distributors only make money if they actually sell the product, so they are highly motivated to work hard and generate a large volume of sales.

The amount of commission a sales rep would make from the company on each sale depends entirely on the agreement between the company and the sales rep. The commission percentage varies based on the industry, product, pricing, sales performance, and so on. Although there are exceptions, the commission percentage usually ranges between 5%-25% of sales generated, depending on the factors mentioned above. Sometimes, in order to motivate their sales reps, companies may set increasing commission levels tied to sales performance of the sales rep in the month or quarter.

There are also sales reps and distributors who have the ability to warehouse products of the company. If this is the case, then the customer can place the order directly with the sales rep/distributor, who would then supply the goods to the customer. In this arrangement, the sales rep makes money through the profit generated by reselling the goods to the customer.

Whether the sales rep works on a commission-basis, on a buy/resell basis, on a fixed retainer basis, or any combination of the above options, would depend on the agreement between the company and the sales rep. Usually the company would have the sales rep sign a sales rep agreement, which would set all the terms and conditions between the company and sales rep.

There is an old saying, "time is money". Enlisting the help of sales reps or distributors will give the company more time to focus on what they do best.