The Modern Marketer – What Distributors do and how to leverage them for your business.

This is what you might be thinking.. If I could just get 10 distributors to sell my products, each of them spending $1000 on marketing for my brand and products, I will be able to save $10000 in marketing expenses. Wouldn’t that be a great way to start a business?

This is often the common norm for businesses in past era. Very much often, business thinks that the 25% – 30% margin given to distributors are for expansion and growth of the business. Most business owners start off thinking that way before they even have any traction of success.

But here’s where you are wrong. Distributors aren’t meant to be exploited, they are here to help your business.

Distributors, as the name suggest, don’t really do the marketing. In fact, they are NOT the best persons to be doing marketing or sales for your business. They are here to allow you to reach out to more people, more clients and bring products closer to your intended consumers.

Who should be the ones focusing on marketing, sales and promotions?.. none other than YOU!

Distribution is similar to franchising. In Franchising, you franchise a successful business, brand and model rather than just letting others sell something that you are currently selling. When you give someone a product to sell, you need to ensure that the product is a successful product in its own community or domain. Then your distributors will be there to help you to reach out more.

If I already have a successful model, why do I need distributors?

You are right? Why pay the 25-30% margin for something that you’ve already proven successful? Can’t you be doing it yourself?

You simply pay the margin for the value provided.

This can be pretty subjective. Value can come in many forms. They can be in marketing expenditure(funding), operational, outreach etc.

In terms of expenditure. Say, if your business is currently reaching out to 1000000 customers with a monthly expenditure of $10000, and able to get a conversion of about 100 paying customers of $10 each, you have a conversion of 1% and an ROI of 10%.

So what would another 10000 customer outreach brings you. Simple! another 100 paying customers and $1000 of earnings! If this new distributor is not able to get you 100 new customers, its failing its duties as a distributor and you should consider replacing them or switch to another distributor with more a more relevant outreach.

For operations, your distributors can be there to help you with minute tasks. Example, the sending of individual orders(B2C clients), while you focus on the expansion of just the B2B sales. This will save you time and effort and focus on the more important aspects of your business.

For outreach, your customers can be where you aren’t. Say if your business is currently serving in Singapore while you would like to tap into the lavish untapped market of the Dubai Market. That is where you can get value from your distributors.

In essence, your distributors are wise business people just like you and me. They are the ones who wish to make a quick buck off your business. Without a successful model to duplicate your success, most old age methods of marketing and distribution can no longer work. Learn to plan your business and find ways to duplicate your model to attract individuals to come over like bees to honey.

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