The National Association of Independent Publishers Representatives has prepared this pamphlet for publishers and prospective publishers. NAIPR is a trade association of independent commission reps for book publishers. Its purpose is to provide a link between its membership, publishers, and booksellers and to further the interest of the membership with these groups. We are a positive force for understanding and cooperation within our industry. NAIPR is not a union, a lobbying organization, or, in any sense, a policy-making group or police force for our members. NAIPR does not make specific recommendations of sales groups to publishers or others seeking sales representation. Business negotiations with NAIPR members must be conducted with the individuals involved. NAIPR has no role or responsibility for contractual terms or standards of performance in relationships between publishers and NAIPR members. A Membership Directory is published annually.

For further information please contact:

The National Association of Independent Publishers Representatives
111 East 14th Street, Zeckendorf Towers, Suite 157
New York, NY 10003
Phone: (508)877-5328
Fax: (508)788-0208

SELLING ON COMMISSION: Guidelines for Publishers is a general outline for publisher/independent rep relationships. It discusses the basic steps publishers may take to sell their books effectively to booksellers, wholesalers, and appropriate special markets and non-traditonal outlets through commissioned book sales reps. There are many variations in the ways in which independent commission reps conduct their businesses and not all of them can be covered here. Nor would all reps necessarily agree with or follow all of these general guidelines. Specific details must be agreed upon between negotiating publishers and reps.

(Ralph Woodward, editor: 6/1/98)

How does the publisher sell his line to the book trade? (Back to Top)

In book publishing this is often the hardest question of all to answer. Getting access to bookstores is not easy and it is a prime task any publisher needs to address.

There are several ways to establish sales representation in bookstores. The choice depends on the publisher's particular circumstances and sales objectives in relation to his overall program.

Very small publishers with only one or two titles to sell or with highly specialized lists who do not plan a publishing program of several (12 or more) new titles per year are best advised to rely on direct mail. They can use catalogs and brochures, telemarketing, personal selling efforts, publisher-distributors, or a network of book wholesalers to supply bookstores with their publications. Booksellers are intent on reducing the number of vendors they deal with and the paperwork involved. They much prefer to use central wholesaler sources for self-publishers and other small manufacturers, unless the product is unavailable through wholesalers, has a large local or regional market, or is very salable and offered on terms that are unusual (50%, Free Freight, Returnable, etc.). Seldom can an independent rep succeed in convincing booksellers to deal directly with very small publishers. Nor can he afford to be a missionary generating business for wholesalers. NAIPR publishes a brochure, Marketing Advice for the Very Small or Self-Publisher, which may be helpful to publishers in this category.

Very large publishers will find it cost-effective to employ commission reps to cover secondary or special accounts and to explore new markets as a supplement to the core activities of the house sales force.

Small and medium-sized publishers (12 titles or more a year in a continuing publishing program), and some large publishers as well, often choose to establish sales representation in bookstores through a network of independent sales representatives. Experience has demonstrated that personal sales representation for books, cassettes, calendars, cards, toys, games, puzzles, and other bookstore-oriented sidelines is the most effective way to achieve market share.

What is the market? (Back to Top)

A recent edition of the American Book Trade Directory lists 26,000 retail and wholesale booksellers in its database. Of these, about 5000 have inventories of more than 10,000 titles and gross sales in excess of $250,000 and are likely to be visited by sales reps. The remaining 21,000 outlets are small bookstores, chain store branches, religious stores, antiquarian and used-book stores, and specialized booksellers of various kinds and conditions. Making allowances for chain operations, superstores, and bookstores that are simply too small or too far off the beaten path to justify personal calls, an informed estimate would be that about 2500 accounts are seen and sold on two to four visits per year by book reps. Many additional bookstores and specialized accounts are also serviced on a regular schedule each season.

This count of 2500 outlets regularly visited includes the buying headquarters of chains (but not their branch outlets), wholesalers, and virtually all bookstores with annual sales of $300,000 or more that are known to buy directly from publishers. Obviously, not all of these stores buy all lines. Increasingly, a large proportion of their business---backlist, reorders of fast-selling titles and random special orders from smaller publishers---is bought from local and national wholesalers to take advantage of fast service, free freight or consolidated shipping cost, reduced paperwork, and Vendor-of-Record programs. Competition from chains and superstores, rising costs of real estate and the expenses of doing business, and other factors are eroding the account base of general independent bookstores---the bread and butter of most commission reps. Consequently, although book reps have always called on many specialized accounts, there is now a strong trend to seek out and to increase calls on museum stores, children's book shops, travel bookstores, teacher-aid outlets, and a variety of other retailers (gift shops, garden centers, toy stores) that handle books.

The six traditional territories in the United States for coverage by book sales reps are usually divided as follows:

New England ME, VT, NH, MA, RI, CT
Mid-Atlantic NY, NJ, PA, MD, DE, DC
Southeast VA, NC, SC, GA, FL, TN, AL, MS
Southwest AR, LA, OK, TX
Midwest WV, OH, KY, MI, IN, WI, IL, MN, IA, MO, ND, SD, NB, KS
West AK, HI, WA, OR, CA, ID, NV, AZ, MT, WY, UT, CO, NM

How does the publisher reach this market with commission reps? (Back to Top)

Several commission rep groups or individual reps work in each of these territorities. Publishers hire a rep or selling group to sell for them exclusively in each territory. Border states like West Virginia may swing from one territory to another.

Special circumstances may require a different territorial structure, but, by and large, these traditional territorial boundaries are observed. A publisher who secures coverage nationwide will find that he has five or six groups with a total of twenty-five to thirty reps in the field, each calling on from 50 to 150 accounts. Depending on geography, title and market mix, frequency of calls required, and other such considerations, a single rep may sell selected accounts for a group or cover a whole territory by himself.

How does the publisher recruit a network of independent reps? (Back to Top)

One way to go about recruitment is to start in your own city or region. Consult local booksellers and other publishers and seek to interview and hire a suitable sales group for your home territory first. Frequently, that group or rep can then recommend reps in other territories for you to contact. A quite complete listing of independent reps appears in LITERARY MARKET PLACE (LMP) under the heading "U. S. Book Distributors & Sales Representatives", (R.R. Bowker Co., New Providence, NJ 07974). The current edition should be available in your public library. The NAIPR Membership Directory for the current year is available, free of charge. Fax your request to (508)788-0208 for a copy of this resource.

Regional booktrade exhibits or the national BookExpo America meeting are events at which reps may approach you or can be contacted and enlisted. A classified ad in Publishers Weekly, American Bookseller, or the ABA 's Bookselling This Week could also produce inquiries.

Why choose commission reps to sell your line? (Back to Top)

Experience. Independent commission reps come from a variety of prior occupations but the overwhelming majority have been house sales reps or marketing executives for large publishers or have worked in retail bookstores for several years before going on the road. Many have been commission reps for an impressive span of years. Their combined experience with books and publishing and their detailed knowledge of booksellers and the book market in their territory is a valuable resource for new and established publishers alike. Booksellers (your customers and ours) appreciate the stability and continuity of working every season with a rep they know has been around and is likely to be around for years to come.

Economy. Independent reps come to the publisher fully trained and are paid only on their net sales in their territory and market. The economies in time and money, minimal supervision, exemption from paying expenses or fringe benefits, become very attractive---a necessity for small publishers and a welcome, cost-cutting alternative for larger houses as well. The head of each selling group becomes your regional sales manager and sometimes provides a staffed regional sales support office regularly telemarketing and servicing customers and prospects in the territory. The cost of fielding a house sales force to call on an increasingly complex and diffused market for books can be staggering. A minimum of $60,000 per salesperson to cover salary, expenses, and benefits is a conservative estimate and suggests an industry average cost of $300 to $350 per sales call to send a house salesperson into an account. Added to this is the administrative cost of hiring, training, managing, and replacing sales and support personnel. $800,000 in net sales volume is thus required to support any house rep. At $350 cost per call there are many viable accounts and some whole territories that are not cost-effective for house coverage.

Efficiency. Because they are oriented to selling as a career rather than a stepping-stone, independent reps offer unusual stability and longevity in their relationships with publishers and booksellers. Years of working in the region's bookstores and special outlets, long rapport with owners, managers, buyers, and clerks make it possible for a commission rep to provide instant access and immediate coverage in markets which, to you, may be new and entirely unfamiliar. Commission reps are already "acquainted" and can move at once to making the sale. For large publishers, commission reps can instantly supplement the efforts of a house sales force to develop specialized or outlying markets at an affordable price. Flexibility to meet the needs of special situations is an important asset in the coverage provided by commission reps. Expertise. New publishers will find an independent sales force a reliable source of information about many details of the business of publishing. There are few facets of book marketing that commission reps have not personally experienced. Formatting sales catalogs, order forms, presentations; planning marketing campaigns, title selection, book packaging; feedback from the marketplace on sales information, credit problems, new trends: these are only a few of the areas in which commission reps can be helpful. Time can be saved, expensive mistakes avoided by consulting your sales force. Reps realize that publishers need feedback from the field and do their best to supply it within the context of their main task, which is to sell books. Publishers should be alert to abuses of the privilege of consultation. Detailed questions about the business of other publisher clients is out of bounds. Purely clerical tasks such as updating a mailing list, doing booth duty at trade exhibits (always a very busy time for reps), preparing selective lists of key accounts for invitations, or collecting small bad debts etc. are stretching the acceptable limits of the job description in a job that is already very demanding in its paperwork and working hours. But reps want to be helpful to their publishers and many provide access to publishing and bookselling networks that can be very valuable.

Enthusiasm. Independent reps know books, like books, and enjoy selling them but they also have the permanent incentive of a direct relationship between what they sell and what they earn. Because commissions are paid, ultimately, only on books that sell through to the consumer, reps are dedicated to the success of new titles and the continued success of backlist titles to minimize returns and keep building their sales volume and their income. Initiative...to be self-starters, to stimulate sales and promotion of saleable titles, to find new outlets, to introduce new products to the territory...initiative is the key to success in commission selling and the key to survival!

What are the drawbacks of using independent reps? (Back to Top)

We like to think there are not many. But publishers need to recognize that commission reps are independent and not subject in the usual way to the control and management of the employing publisher. "Chemistry" and cooperation become very important in the rep-publisher relationship.

It is also important that the publisher select reps who have a genuine interest in his line. And it is vital that the publisher support field sales efforts with products of good quality, prompt and accurate fulfillment, proper sales tools and reasonable sales policies that are in keeping with prevailing practices in the trade. Strict adherence to a written agreement with the rep, including regular, properly documented payment of commissions earned is, of course, the essence of a successful business relationship. Neglecting these basic requirements is often the source of grievances. It is always best to keep them firmly in mind.

Commission reps are "merchants of time" and how they use available selling time in a given appointment is at the heart of their services to publishers. In this day and age, all reps carry many lines and, often, some competing lines in their bag (this is especially true when the rep or group is particularly well-informed in a subject area---computer books, travel books, business titles, etc.) This can be a strength and an advantage to the publisher rather than a drawback. But if too many lines or competition are concerns then it would be wise to consult with a few major buyers in the territory before selecting a selling group for the area to see if the reps give even handed attention to their publisher clients. It is usually the case that what sells, sells! Reps push the titles of every client in accounts where those titles are truly appropriate and saleable.

Coordinating the schedules of the publisher and reps in the field at specific times, places, and events (such as an author appearance in a given city or bookstore or a sales call on an important account with a visiting sales manager) can be difficult. It is helpful to plan far ahead when a rep's presence is required at a specific time and place and adjustment of a busy and complex schedule is necessary. Reps will do their best to meet special needs but it is not always possible to do so. A certain amount of give and take in these circumstances is called for.

How much will it cost? (Back to Top)

Sales commissions are usually paid on "ledger business" in the territory, i.e. all shipments made to bookstores, book wholesalers, and other qualified accounts in the states covered by the sales group. Usually exempt from commission are sales made directly to libraries, institutions, individuals, and premium or catalog accounts, unless the rep has been involved in presenting the product and making the sale.

"House accounts"---wholesalers, large chains, or special accounts that would normally be commissionable---are sometimes reserved by the publisher. This practice is not acceptable to independent reps but an adjusted commission may be negotiable in special circumstances.

In the case of customers who do business in more than one territory (chains, national wholesalers, major specialists, etc.) several options for the payment of commissions exist:

Rep account. Commission paid to territory where books are billed.
Shared account. Commission paid to territories to which books are shipped.
Parity account. % paid to bill-to territory and % to ship-to territory.

The growth of national wholesalers, chains, and superstores as sources for books and the increasingly centralized buying for these sources raises sensitive issues for publishers and their reps. Reps who service these large accounts need, of course, to be compensated for their detailed and time-consuming work in selling to multiple buyers in many subject categories. Reps in the field in other territories need to be compensated for the business they generate in independent bookstores that is channelled to national wholesalers.

The absolute need to get a title in the store---bought, on the computer database, displayed in order for a sale to happen and begin the process of re-ordering---is best accomplished by a personal sales call and face-to-face, title-by-title presentation to a buyer. All subsequent purchases of that title, regardless of source, follow from the success of the initial sale by a rep. It is essential that independent reps be adequately compensated for their services in this process and credited with commissions on purchases through wholesalers as well as direct purchases from the publisher.

Wholesalers who furnish data on shipments made to various states or bookstores and reps who secure and submit data on purchases made by their accounts from wholesalers outside their territories are supplying sales information that can be the basis for commission payments. Clause 5 of NAIPR's sample letter of agreement suggests a format for compensation for indirect purchases channelled through wholesalers or other sources---books that are not shipped and billed directly from the publisher.

Sales commission rates fall in the range of 10% to 15% of net invoice value on shipments made to retailers and 5% to 10% on shipments made to wholesalers. Commission rates are higher (15% to 20%) on calendars and other non-book merchandise for which no royalties are paid. Rates may be adjusted by mutual agreement when special sales at discounts above 55% are made.

Sales commissions already paid on merchandise that is returned or on accounts that are written off are deducted from commissions due. Independent reps try to avoid overselling or selling to accounts with doubtful credit since, ultimately, no commission is retained. The result, though not foolproof, is a useful and natural control for the publisher in the troublesome areas of returns and bad debts.

Cost cutting is always important in book publishing where many increasing expenses are beyond the publishers' control. The judicious use of independent reps (with variable expense for their support in the field, for their travel and entertainment costs, and without the administrative and financial burdens of insurance, incentives, pension and benefit plans) can reduce sales cost.

NAIPR's Sample Letter of Agreement (if not enclosed here) is available on request. Many reps have their own recommended agreements that may differ in several details from the NAIPR draft which is only intended to raise some of the points that need to be covered in such a contract.

What do reps need to get the job done? (Back to Top)

Requirements vary from publisher to publisher, depending on the size and nature of the list, but here are some suggestions for estimating what will be needed to equip a staff of independent reps.

Catalogs. We need a new catalog for each season (ready no later than December for Spring and in May for Fall) with new titles presented separately (at the front of the catalog, i.e. "frontlist") and a concise review of the complete backlist (including title, author, price and International Standard Book Number (ISBN), and Universal Product Code (UPC), retail sales policies and discount schedules, a list of sales representatives with addresses and phone/fax numbers, and a bound-in order form. All preferably 8 1/2 X 11 inches for convenient filing, stacking, carrying and mailing. Remember that a sales catalog is a tool. Layout should be simple with clear presentation of essential information, room for a buyer to annotate quantity, subject classification and notes, and on a paper that can be easily written on in pen, pencil, or felt-tip. Wandable ISBN/Bar Codes are a plus. We advise against weird sizes or a designer's idea of a "different" look. Keep it practical. Illustrations in full color are effective if you can afford it.

Order Forms. We prefer a three-part (white-yellow-pink), No-Carbon-Required , 8 1/2 X 11 inch form or multiple thereof. New titles should be listed separately in the order of their presentation in your catalog, backlist titles alphabetically by title, including title, author, price and complete ISBN. Include your retail discount schedule, returns policy and returns address, other sales and advertising policies briefly stated on the reverse side of the last (pink) copy (left with the customer) if there is no room on the front. Give us room in the bill-to and ship-to space to use a rubber stamp (Sized approximately 2 X 3 1/2 inches). Provide a separate space for writing special instructions.

Order Envelopes. Self-addressed, postage-pre-paid order envelopes sized to comfortably fit your order form are essential. If you want and need to have orders forwarded promptly it is important to supply order envelopes as specified. It is not that reps are too cheap to pay postage! It takes time to go to the post office, stand in line, and get the right amount of postage. Pre-paid envelopes can be dropped in any mail slot.

Samples. A jacket proof, book photography, or other visual representation of new titles should be sent to each rep before the beginning of a new season. A finished book and extra jackets should be sent to reps to signal that the book has been shipped to customers.

Accounting. Send heads of groups copies of invoices and credit memoranda for shipments made into each territory monthly with full payment for such net shipments for the month. Include computer print-outs of sales analysis and account information when available. Supply Electronic Data on disk or by internet if your reps have compatible systems. Sales Meetings. Publishers employing independent reps usually hold their sales conferences in New York City during the first two weeks in December for the Spring season and the first two weeks in May for the Fall season. Sales meetings at BEA in Chicago are discouraged.

Scheduling is often difficult because of conflicts for a specific day or time. Publishers need to understand this problem and be flexible about meeting some reps on a one-to-one basis, scheduling more than one meeting, or presenting their lists to representatives of a group rather than the entire force. Allow adequate time to present your list but bear in mind that the soul of successful sales conferences is brevity!

A series of long sales conferences can hold a sales group in New York for as much as two to three weeks. Per diem allowances or fees by the publisher for reps attending their conferences are a welcome form of compensation to offset the substantial costs of being in the city. Some publishers are now making excellent use of videotapes to introduce their far-flung reps to a new or interim list. Inability to attend your sales meeting is not a signal of lack of interest or enthusiasm. There may just be unavoidable conflict with the meeting of another publisher.

Frontlist-on-Floppy. For several selling seasons NAIPR has worked with WordStock to supply reps and rep groups with the new titles for their several publishers on disks that can be down-loaded to both WordStock and many DOS-based (IBID etc.) computer inventory control systems. Reps instruct us as to the publishers they want on their disks and we supply them to reps (with considerable rushing about to get information on 15,000 new titles from over 250 publishers) at the beginning of the season. Publishers are billed at the rate of $2.00 per ISBN for data entry. Reps pay $3.00 for each diskette. Many large (and small) customers make use of frontlist-on-floppy disks and some require them at the time of the sales call to assure accuracy in adding titles and purchase quantities to their systems. Publishers have been very cooperative in their support of FROF and we urge you to participate if you receive our invoice or our request for information.

Laptop Computers. The use of laptop computers by independent reps for preparing and transmitting purchase orders by fax to their various publishers and for keeping and analysing sales records is increasing. Software for independent reps is already available and being rapidly developed and expanded in its usefulness. NAIPR foresees very widespread use of the technology by its members within the next few years. It will soon be necessary for publishers to be able to supply their commission reps with new title information and backlist information, regularly updated, in a machine-readable format for downloading to laptop systems. We hope to achieve some standardization for this task and ask all publishers to keep this future need in mind as they develop their electronic data processing systems. Access by e-mail and the use of websites to communicate information is also helpful to reps, who are often difficult to reach by phone and buried in mail.

The Pitch (Back to Top)

Successful selling on commission is a two-way street for publishers and independent sales reps. What works, works for both. The end result is an economical, professional sales force compensated in direct proportion to sales generated for the publisher. If you are small but have reached critical mass in production of new titles and an on-going program, or if you are a publishing giant but need now to reach into the nooks and crannies for additional sales volume, a commissioned sales force can work for you very profitably. Just be sure that you are ready to sell your line through independent reps and select them carefully for the long pull.

The practice of selling on commission has a time-honored place in the publishing industry. It works well for many publishers and it will work for you, too. We urge you to employ independent sales representatives . . . an indispensable and effective element in marketing your books.