An interested distributor is not yet a good distributor. Before signing, it pays to check that they can sell your product, that they want to and that they will do it well. A few questions and some checks prevent the most expensive problems.
Questions for the first conversation
- Which customers do you sell to today, in which sectors and areas?
- Which brands do you carry and how would ours fit in?
- Who would look after our product, and how much time would they have?
- What would you need from us to sell it: training, materials, joint visits?
- How do you work with your other brands: targets, reports, meetings?
- What targets would you see as realistic for the first year?
What to check yourself
- References. Talk to a brand they already represent and, if possible, to a customer.
- Capacity. Sales and technical team, warehouse, after-sales service.
- Soundness. Track record, financial situation and reputation in the sector.
- Conflicts. Whether they carry products that compete with yours.
Warning signs
- They ask for broad exclusivity without committing to targets.
- They cannot explain who would sell your product.
- They carry too many brands to give time to one more.
- They promise a lot without asking anything about your product.
- They will not share information about customers or sales.
Before signing
Agree in writing on the territory, targets, duration, exit conditions and what each party contributes. If you grant exclusivity, make it for a limited period and linked to results. Have the contract reviewed by specialist legal advisers.
And remember that signing is the beginning: what happens in the first months with a new distributor shapes the rest of the relationship.
How we help
With IBD Partners we search for and filter the distributors and partners that fit your company, check their profile and introduce you to the decision-maker. The negotiation and the agreement are yours. To start your search, read how to find distributors in another country.
