Identifying and Qualifying Distribution Channels Archangel Annual Event February 2006 Graham Miller, Neeve Brookes Ltd © Neeve Brookes Ltd 2006

Routes to market Direct via own sales team Third party distributor Agency agreement OEM E commerce Co-marketingLicencing Trade Sale etc Or a combination The right approach can be market dependant – e.g. USA and Direct to Consumer marketing

Finding third party distributors Look for companies working in the same space perhaps selling complementary products. Customer contacts. Exhibitions. Other companies – who do you know? Local enterprise groups. Local embassies. The best distributors are a good test of you and your product.

Using the distributor profiling document (1) Can be used in one of two ways:- - As a response to distributor enquiries where it will ‘weed out’ the less committed. - As a script for face to face meetings.

Using the distributor profiling document (2) Questions 1 to 8 are ensuring that the partner is in the right space. Question 9 re conflicts need not rule out a cooperation. Questions 10 to 13 ensure they have the means to promote and asks for past evidence to ensure that it does happen. Questions 14 to 18 are real test of commitment but you may not be able to insist on a yes to 18. Questions 19 and 20 are very important think of this as recruiting someone to your team – would you want them to sell for you? Don’t forget question 25 the answers might surprise you. Get the distribution agreement/contract right!

The right characteristics Small and hungry. Successful. Right customer base. Complementary products. Someone who can handle, demo your products. Support network. Established relationships. Excellent reputation. Someone you can work with – is the chemistry right! Personal preference here based on experience

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