I have a lot of contacts in the medical industry however getting sick of working for someone (e.g. Territorry Realignments, Unrealistic Goal Expectations, Micromanagers). I have saved some money so thinking of starting my own business. I feel like working as a 1099 Representative. Does anyone have any thoughts regarding this? What are some of the drawbacks?
Who are you? Asking about a 1099 is stupid. You are clearly a dummy that doesn't know anything about selling to ask this question. Go to the high school vocational forum on the web, that is where you belong.
Okay, let's start at the beginning. A "1099 rep" is, for all practical purposes, an independent businessperson. You're responsible for your hours, how you conduct your business, manage your out-of-pocket expenses (auto, travel, misc.). Technology (phone, laptop, etc.) is your decision, although may be partly dependent on the needs of your business partners (suppliers). The "1099" label comes from the tax form that comes from the business partner (supplier) who pays you to represent and sell your product. Depending on the business agreement that you have with that business partner (and you could have multiple business partner agreements for probably non-competitive business lines), you may have some requirements to perform your representation of their products in a manner acceptable (ie, laws/regulations), you may or may not have quotas and/or geographic restrictions and such.
1099 reps are at the top of the food chain in sales, and generally make the most money with the least internal headaches.
Too many to list. Do your research. You will get exposed if you can't sell. So, only do it if you are confident, have a car, and about 6 months worth of living expenses.
Do your research ... a wise bit of advice. Ask questions -- are territories protected and how are they determined. You could get a big account, churn some good commission dollars and find the account is now a "house account" where the manufacturer/distributor now takes all the loot. What other lines of business can be carried -- your mfg/dist will probably object to you carrying competitive lines, but a definition of same can be helpful. What expectations (quotas, etc.) does the mfg/dist have for their 1099 reps? They can't dictate your working hours, etc., but they may have expectations of calls or sales quotas. What terms would they "pull" your lines of business? Do they need to give you a certain prior warning or do they need to pay commissions for a set period after you end your relationship? Everything is negotiable. You're selling your service as a distributor/seller to them and they're selling their products to you.
