Brokers & Sales Reps

Brokers are the most commonly misunderstood line item in emerging CPG. Founders hire one expecting a salesperson and get a relationship manager. Or they skip one entirely on the theory that brokers are for big brands, and then spend two years failing to get a meeting that a well-connected broker could have arranged in a month. Both mistakes are expensive and both come from not being specific about what the broker is actually for.

The honest answer is that it depends on the channel and the stage. Some retailers effectively require a broker; others prefer direct contact with the founder and will take your call. A broker who owns the relationship at a specific chain is worth real money. A broker who adds you to a deck of forty brands is worth close to nothing, and will still charge you a retainer for it.

The posts here cover when a broker genuinely helps and when it does not, commission against retainer structures, the contract clauses that determine whether you can leave, red flags during the pitch, and how to manage the relationship so the broker keeps working your line after the initial placement.

All 21 articles