Genie,

What you're talking about is what is called a Manufactures Rep, or Manufactures Agent. I had an agency years ago in the automotive industry. Generally speaking, there are "Rep Groups" that are industry specific. It's a great way for new companies to get their products to market without a fixed overhead.

It's a difficult business to get started in because it really depends on clout, or the contacts you develop over time. Starting out you'll be begging for lines, if you're successful over time, companies will seek you out. Nearly all the mass retailers deal with Reps and prefer to do so. This is because rather than having to take the time to meet with twenty different manufactures, they can deal with 1 or 2 or 3 Reps that handle those lines. When the system works properly, the Rep is the clout for the factory, and they're the clout for the retailer. The commissions are generally based on the industry and the product. In the automotive industry muffler clamps or hose clamps might be a 2% line while waxes and chemicals were usually 10%. The average was 6%. The agency was paid on the net invoice amount..meaning less freight etc.

If you can break in and pay your dues so to speak it's a very lucrative business with low overhead.

In many cases when a line grows enough the factory wants their own rep handling it and you end up losing it...financially it really hurts if you've built up a 3 or 4 million dollar line over a number of years and then all of a sudden, not because of anything you did or didn't do, it's gone....but it's the nature of the beast.

Hope this helps
Denny