TN 10 (08-11)

RS 02101.174 House-to-House Dealer Salespeople

A. Introduction to house-to-house dealer salespeople

House-to-house dealer salespeople differ from house-to-house commission salespeople in one significant respect. The dealers buy stocks of commodities at wholesale from the companies and sell them at retail to their own customers. In many respects, they are similar to ordinary retail merchants, except that they sell on a house-to-house basis, rather than from a store.

House-to-house dealer salespeople

  • usually work for only one company;

  • have assigned territories with sample kits, advertising material, and price lists;

  • attend training courses, and sometimes, employers pay a salary during the learning period and when they first start to work;

  • work under the close supervision of experienced salespeople or company managers.

B. House-to-house dealer salespeople as employees

After these workers complete training and begin working independently, supervisors relax control over their services, but the companies review the results of their labors and retain the right to supervise and control them.

A house-to-house dealer salesperson is an employee when he or she:

  • must report regularly on sales, prospects, and work activities;

  • must report regularly for sales meetings and pep talks;

  • does not have to work during the company’s fixed hours, but must meet a certain quota;

  • cannot sell on credit and must abide by the company’s prices;

  • may return merchandise to the company with no loss;

  • receives leads and must follow up and report to the company;

  • must concentrate on certain products listed as “specials” and follow schedules or routes that the company provides;

  • attends training if sales decline, (a manager or other company representative) will investigate and instruct the dealer on how to increase sales);

  • receives helpers from the company, especially for maintaining large volumes of sales;

  • may terminate the relationship on short notice; and

  • has the opportunity for a promotion. When dealers help train others, and obtain best results, their employers may promote them to managers.

C. House-to-house dealer salespeople as independent contractors

House-to-house dealer salespeople are independent contractors when they:

  • choose their own work hours and soliciting methods;

  • frequently hire and pay assistants;

  • pay their own business expenses;

  • solicit within their territories from whom they please; and

  • take the risk of loss by selling on credit.

The companies' only interest in the dealer is in their usefulness as a medium to dispose of the companies' products. The dealers’ livelihoods depend on their own efforts and ingenuity to establish clienteles and good reputations. They are independent business people.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0302101174
RS 02101.174 - House-to-House Dealer Salespeople - 08/19/2011
Batch run: 08/19/2011
Rev:08/19/2011