🤝How to Manage Your Broker Reps When Breaking Into Retail
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.”)
These reps facilitate the working relationship between you and retailers, handling everything from buyer relationships to the complex operational systems 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 scale and momentum without hiring a full in-house team.
But there is a catch: reps need to be well-managed to be effective. The wrong reps with the wrong guidance can burn time, money, and opportunities. 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 for Key Account reps who target national and regional chains. We’ll cover “Gift Reps” – specializing in independent stores – in a future post.
Why Broker 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 onboarding, EDI, and compliance systems 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. The difference comes down to your understanding of what quality looks like, and how you manage your reps.
Step 1: Finding Broker 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:
Referrals
You should be networking with other non-competitive brands in your space anyway. You can learn a lot from CPG brands that are just a bit further along in their growth strages 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.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.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 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.
Step 2: Interviewing Your Reps
Treat hiring a rep like hiring a senior salesperson. Ask pointed questions to ensure they can actually 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.
Step 3: Negotiating Their Terms
Don’t let your rep dictate all the terms. Use your own contract template across all your partners to keep things consistent. While the shapes 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 underperformers.
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.
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 not super communicative. 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 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.
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:
Find the right reps through referrals and vetting.
Negotiate fair, flexible terms.
Actively manage their priorities, messaging, and buyer relationships.
Measure 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.
Or reach out to me directly at Michael@CrossStratinc.com