A new venture may also consider brokers' or manufacturers' representatives to reach retailers or end users. Manufacturers' representatives do not take title or physical possession of any products. Their role is to act on behalf of a number of noncompeting companies that will share the cost of their services. In our oxygen-based rug cleaner example, the entrepreneur
may consider contracting with manufacturers' representatives that sell commercial product (such as cleaning supplies, furniture, or carpeting that would add the rug cleaner as a complement to their other products. They would be paid a commission only when a product sold (usually 6 to 8 percent depending the product). Manufacturers' representatives could also be used to market to the consumer or household market. In this case the entreperneur may look for those representatives that are presently marketing household cleanres or other
similar product to retail outlets. Orders then would be sent directly to the new venture and would be products to and would be shipped from there to the end user. This saves on the costs of a sales staff. storage, and multiple shipping points. Brokers are similar to manufacturers' representatives and are common in food dry goods businesses. The types of representatives are also, available in many international markets and represent an effective source of market data as well as a means to reach the target market with experienced sales people