B2B startups, and even more established companies, that develop innovative products are very focused on the product and its development. These companies have invested all of their capital, time and efforts into developing and improving the product. When they face difficulties entering international markets, they don’t seem to understand why it’s so hard to sell a product that is better than the competition, and why clients don’t simply realize it and just buy the product or at least start [...]
Most B2B software companies I work with seek to identify distributors, resellers or other channel partners in order to promote their products in relevant international markets. This process is often undertaken without proper planning and preparation, and suddenly companies are left wondering whether they should sign a detailed distribution agreement or forego it entirely and work without a written agreement. Read the full article which was published in Status - the Magazine for Strategic and Managerial Thinking in this link .
Any reasonable person would tell you that this statement has a built-in contradiction. In a live survey that I conducted during one of my lectures in front of a large and experienced crowd of exporters, around 67% believed that if a locally-based company that develops or manufactures products and solutions works with a distributor or other channel partner abroad and issues them an invoice, then the distributor is that company’s client. A few exceptions aside, this is a mistake. The [...]
The dream of breaking into global markets During my work, I accompany startups and small to medium tech companies in the B2B field in their efforts at penetrating international markets. Most of these companies are globally-oriented and the dream to break into global markets is the goal of most of them. The entrepreneurs are confident in the technological or functional superiority of their product and are ready for the big challenge. Are they? Each time I am once again baffled by these [...]
The 5 Most Deadly Mistakes of B2B Start Ups and Software Companies When Locating and Recruiting Distributors Abroad
Most start-ups and software companies in the B2B field recruit distributors abroad. The benefits are clear, and the following can be included as the major ones: A local distributor is a much cheaper alternative compared to the costs of opening an office and recruiting local employees The distributor has relations and better familiarity with the local market than we have – it reduces our time-to-market The distributor has presence and speaks the local language, resulting in better communication with [...]
International high-tech companies wishing to extend their global reach to new territories may opt for building up indirect sales channels. Using distributors is a common option. Distributors may be defined differently in different industries and by their respective players. By a distributor we refer to a legal commercial entity in the target market which is legally and organizational wise independent from the international company and which: • Commits to promote, sale and optionally provide implementation and first line support services, if [...]