🤝Managing Your Broker Reps When Going From Online to Retail Stores

If you’re a CPG brand trying to scale beyond Amazon and DTC, it might be a good strategy to work with manufacturer’s representatives—also known as broker reps (or simply “reps.”) You’ve probably heard of the concept before, but what do these reps actually do, and how do you know which ones are right for you?

Reps facilitate the working relationship between you and retailers, handling everything from buyer communications to the complex operational back end systems the major chains use. They’re typically paid on commission (% of sales), and for many brands, they’re a cost-effective way to build retail sales. You can gain scale and momentum without hiring a full in-house team, and lean on their industry knowledge and connections.

But there is a catch: reps need to be well-managed to be effective. The wrong reps without good guidance can burn time, money, and, worst of all, kill opportunities. But managed properly, they can be one of your most important growth levers and long term strategic partners.

This guide covers how to find, hire, and manage broker reps effectively—specifically Key Account reps, who target national and regional chains (think Walmart or Tractor Supply Co.). We’ll cover “Gift Reps,” who specialize in independent stores, in a future post.

Why Reps Matter

Reps don’t exist by accident. They serve a clear purpose in the retail/wholesale relationship. The best ones are useful to brands because:

• They already have relationships with buyers, and are often a trusted source of new product ideas for buyers’ categories.

• They know how to navigate and support the on-boarding process, EDI systems, and compliance checkpoints that chains require.

• They can scale your sales outreach quickly without an upfront capital cost.

That said, not all reps are created equal. The best ones are sharp operators who can help grow your business. Others might only get you a meeting and then collect a commission without driving much value beyond an introduction. They exist solely as gatekeepers to buyers and should be avoided or fired quickly. The difference comes down to your understanding of what quality looks like, and how you manage your reps.

Step 1: Finding Reps

Unless you have a crazy-hot product, the best reps rarely will come to you. You need to go out and find them. Here’s where to look:

1. Referrals
   You should be networking with other non-competitive brands in your space. You can learn a lot from CPG brands that are just a bit further along in their growth than you. For the ones in retail, they almost always have names of reps they trust (or avoid). This is the best intel you can get on rep quality.

2. Trade Shows
   Industry events like Expo West, AmericasMart, and category-specific shows are full of brokers looking for new brands. The face to face meeting opportunities allow you to have extended conversations and feel out potential fit for a working relationship. You might even get to quickly meet some of their other clients for a vibe check.

3. AI Search Tools
   Use AI (or even LinkedIn Sales Navigator) to identify reps who specialize in your target retailers. As these are relatively unqualified, be sure to interview them thoroughly.

Whatever you do, don’t just grab the first rep that comes along who says they “know a guy at Target.” You need to understand their strengths and weaknesses, and see some demonstrated success in their past, ideally in your category.

Step 2: Interviewing Your Potential Reps

Treat hiring a rep like hiring a senior salesperson. Ask pointed questions to ensure they can deliver:

• Portfolio fit: Do they already represent 3–5 brands in your target accounts? What categories are these; what do they specialize in?

• Growth track record: What YoY growth have their brands achieved in their main accounts? Go back a couple years to understand how they have built brands up from the testing stage to larger success.

• Recent wins: Can they share specific examples of getting a brand onto shelves recently? What was the most recent placement they achieved– when and what account?

• Process focus: How do they approach opening new doors—beyond just leaning on existing relationships? Ask to look at previous presentation material to see how they tell a brand’s story to a buyer.

• System knowledge: Do they know how to manage EDI, chargebacks, and retailer portals at your target accounts? This alone can sometimes justify their commission.

Be wary of reps who lean solely on “I know the buyer personally.” Relationships matter, but process and execution are what actually move the needle. The best reps demonstrate repeatable success across numerous brands, categories, and accounts. This naturally leads them to become deeply ingrained with their key accounts. Commonly, getting the buyer to take a look at your item is the easy part. You need to find reps that will get you over the line.

Step 3: Negotiating Terms

Don’t let your rep dictate all the terms of your agreement. A good foundational practice is to use your own contract template across all your partners to keep things consistent. While the nature of rep relationships often vary by category, generally a fair deal for a Key Account rep usually looks like this:

• Commission rate: Around 5% of Net Sales. Only pay more if they’re providing substantial additional services, like managing your trade shows.

• Net of invoice: Ensure their commission is calculated after deductions and allowances, so they’re incentivized to help minimize chargebacks and fees.

• Flexibility: Build in a 30-day out clause so you’re not locked into under performers. Some may ask for a longer tail of payouts to protect themselves from a quick firing after closing a deal. This can be acceptable, but should still try to structure it so they are constantly incentivized to help you grow the account long term.

• Exclusivity limits: Limit exclusivity to 1–3 key accounts until they prove their value.

Set these expectations up front to avoid hurt feelings and liability later. Avoid handshake deals and put everything in the contract.

Step 4: Managing the Relationship

The biggest mistake I see brands make is assuming reps are set and forget. You can’t just sign a rep and expect to sit back and let the deals flow in. Treat them like part of your sales team. Some reps can be stuck in their ways and are not good communicators. Remember, they work for you, not the other way around. They should be good partners that share their wisdom while respecting that you know how to position your own product.

Here’s how to keep things on track:

• Own the sales agenda: A rep’s experience and input are valuable, but, ultimately, you drive the sales strategy and messaging. The final strategy calls are yours to make.

• Regular meetings: Schedule consistent check-ins to review progress, align on priorities, and keep momentum.

• Keep them informed: Share company news, updated sales tactics, and insights they can use in conversations with buyers. This helps you stay top of mind and get prioritized in their book of business.

• Stay close to the customer: Join every buyer pitch or call. Do not let reps become a wall between you and your retail partners. The buyer relationship belongs to you.

• Performance accountability: Track their activity and results. Fire slow or unproductive reps quickly. Double down on the ones who deliver by expanding their territory (gradually.)

A good rep should feel like an extension of your team, producing sales while contributing to the brand growth in other ways. A bad rep is one who looks to make an introduction for you and then sits around to collect an annuity. Hold onto the good ones for dear life.

Some Final Takeaways

Broker reps can be a powerful growth tool for Amazon-native and DTC brands making their first push into retail. But only if you:

1. Find the right reps. Work through referrals and vet them thoroughly.

2. Negotiate fair, flexible terms. Make sure everyone signs agreements.

3. Actively manage their priorities, focus points, and buyer relationships.

4. Measure their performance—and don’t hesitate to make changes when necessary.

Get this right, and reps can help you scale into major retailers faster than you could on your own, and with less internal complexity and overhead. Get it wrong, and they become an expensive bottleneck.

Need help identifying, interviewing, or managing broker reps for your retail launch? I work with CPG brands to build their go-to-market strategy, set up rep networks, and create the systems to keep them accountable. Reach out if you want to introduction to great reps.

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Or reach out to me directly at Michael@CrossStratinc.com