Distributor or direct sales?
Who should you sell to abroad? One distributor says “I’ll take the whole country”; another buyer wants to order directly. The wrong model can lock up a market for years. 🔀
The sales model is a choice between control, profit, risk and speed.
Short answer: a distributor brings speed and market knowledge but reduces control; direct sales bring control and profit but take effort. Decide by product, market and capacity; grant exclusivity with a trial period. ⚖️
Note: foreign trade regulations, procedures and support schemes change; get current information from your customs broker, your bank and the Ministry of Trade.
Four sales models
BU BÖLÜMÜN ÖZETİ
- Distributor
- Agent
- Direct sales
- Private label
Pros and costs. 🗂️
Distributor
Holds stock, knows the market; margin and control are theirs. 🏢
Agent
Sells on your behalf for commission; stock and risk stay with you. 🤝
Direct sales
To end buyers or retailers; control and profit high, effort too. 🎯
Private label
Producing under the buyer’s brand; high volume, your brand invisible. 🏷️
Decision criteria
Four questions. ❓
Team capacity
Do you have the language, travel and follow-up strength for direct sales? 👥
Brand goal
Do you want to be visible under your own brand long-term? 🏷️
Distributor contracts
BU BÖLÜMÜN ÖZETİ
- Territory and exclusivity
- Minimum targets
- Trial period and termination
- Brand and pricing
Four clauses. 📑
Territory and exclusivity
Which country, which channel; exclusivity tied to performance. 🗺️
Minimum targets
Annual purchase or sales target; miss it and exclusivity lapses. 🎯
Trial period and termination
A trial first; termination terms clear. 📅
Brand and pricing
Brand use and pricing policy in writing; take legal advice. ⚖️
Managing the relationship
BU BÖLÜMÜN ÖZETİ
- Regular sales reports
- Marketing support
- A yearly visit
- Performance review
Four habits. 🔄
Regular sales reports
The distributor shares sales and stock data. 📊
Marketing support
Catalogues, visuals, training; see the archive’s digital media guides. 🎁
A yearly visit
Face-to-face meetings and market observation; fair seasons are a good chance, see the trade fair guide. ✈️
Performance review
Were targets met? The contract renews accordingly. ⚖️
Four common mistakes
BU BÖLÜMÜN ÖZETİ
- Open-ended exclusivity
- Contracts without targets
- Unwritten pricing policy
- Total dependence on one distributor
All four lock the market. 🚧
Open-ended exclusivity
A non-performing distributor closes the market for years. 🔒
Contracts without targets
The contract runs on even without sales. 📉
Unwritten pricing policy
Price confusion in the market damages the brand. 🏷️
Total dependence on one distributor
When that relationship breaks, the market resets. ⚠️
What should I do today?
BU BÖLÜMÜN ÖZETİ
- Step 1: answer the four questions
- Step 2: check your contract template
- Step 3: legal advice
- If you want help
Three steps, one hour. 🪜
Step 1: answer the four questions
Technical, fragmentation, capacity, brand; the model becomes clear. ❓
Step 2: check your contract template
Territory, targets, trial period, termination; which is missing? 📑
Step 3: legal advice
An international trade lawyer before your first exclusive contract. ⚖️
If you want help
Let us choose your sales model together: use the consult your expert form. For your current setup see the digital audit; the bigger picture sits on the foreign trade consultancy page. 🎯
Related reading from the archive: expanding to other marketplaces · copycat products.
📝 Notes From the Field
A firm had given a distributor open-ended exclusivity with no targets; the distributor sold little, yet working with other buyers was impossible. Through a legal process the contract was renewed with minimum purchase targets, a trial period and termination terms. Exclusivity lapsed in regions that missed targets, and direct sales began with two new buyers.
📖 Short Glossary
Distributor: a firm buying products and reselling them in its market. Agent: a representative selling for commission. Exclusivity: the right to be sole seller in a territory. Private label: products made under the buyer’s brand.
⚡ Quick Summary
The sales model is a choice between control, profit, risk and speed. 🔀 Distributors, agents, direct sales and private label are different models. Decide by product complexity, market fragmentation, team capacity and brand goals. Distributor contracts put territory, targets, trial period, termination and pricing in writing. Tie exclusivity to performance.
🎯 Next Step
Let us choose your sales model: use the consult your expert form. Delivery terms sit in the delivery terms guide; for your setup see the digital audit.
Frequently Asked Questions
Sık Sorulan Sorular
Products needing installation and service need a local partner. 🛠️
Many small buyers? A distributor gives reach. 🗺️
If so, with a limited territory, minimum targets and a trial period. Unconditional exclusivity is the commonest costly mistake.
A distributor buys, holds stock and sells on its own account; an agent sells on your behalf and earns commission.
Templates help, but governing law and jurisdiction matter in international contracts. Take legal advice.