When you enter a new market, one of the first decisions is how you will sell there. No model is better than the others: each one combines investment, control, speed and risk in a different way.
The most common models
Distributor. Buys your product and resells it with their own margin. Takes on stock, logistics and often service. Gives you speed and reach, but less control over the final price and the relationship with the customer.
Sales agent. Finds customers and closes sales on your behalf in exchange for a commission, without buying the product. You keep the contractual relationship with the customer and more control, but you handle logistics and service. Note: in some countries the law protects the agent when the contract ends.
Direct sales. You sell yourself, from your own country or with someone in the market. It is the model with the most control and learning, but it takes time, travel and the capacity to serve distant customers.
Local partner or integrator. A company that builds your product into its projects or solutions. It works well for technologies that are part of a larger system.
Own presence. An office, a subsidiary or local production. It only pays off when volume or closeness to the customer justifies it.
How to choose
Ask yourself five questions:
- How much technical knowledge do the sale and the service require?
- How many potential customers are there, and how big are they?
- How much control do you need over price, brand and relationship?
- How much can you invest, and for how long?
- What is usual in that sector and in that country?
Many companies start with direct sales to a few key customers to learn the market, and then bring in a distributor to grow.
Common mistakes
- Choosing the model for convenience rather than for the market.
- Signing long exclusivity agreements before you know the country.
- Not reviewing the legal terms of each model with specialist advisers.
- Thinking a model is forever.
How we help
With IBD Partners we search for and validate the distributors, agents or partners that fit your company and introduce you to the decision-maker. To compare the options for your case, get in touch.
