Rarely. This partly depends on whether a company wants to minimize fixed costs or variable costs, but most brands just want to maintain flexibility. An internal salesperson will receive a salary, benefits and commissions, while a manufacturers’ rep is primarily paid on commissions. Most small- to medium-sized brands want to focus fixed-cost investments on product innovation, and manufacturers’ reps are a variable cost as they are only paid if they successfully sell products. Internal sales employees are typically paid a salary and benefits even if the product doesn’t sell, which can be a heavy fixed-cost burden for small- to medium-sized companies. Even large companies utilize manufacturers’ reps because it is often the most efficient way to test out new territories and accounts with maximum flexibility.

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