A common phenomenon I encounter in my work meetings with B2B software companies and startups is the frustration of founders, CEOs and sales managers that although they have an excellent product it is very difficult to sell it overseas. The frustration from this situation is particularly big when it concerns a product that has succeeded in the local market in Israel, so there is no doubt about the usefulness of the solution, its rich functionality and the company's delivery capabilities. [...]
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 [...]
How Will You Make Distributors Want to Work with Your Company and Successfully Sell Your Products in Global Marketing?
Appointing distributors in B2B start-ups and software companies is rather common. In a previous article, we listed the 5 Most Deadly Mistakes of B2B Start Ups and Software Companies When Locating and Recruiting Distributors Abroad. We’ve seen that one of the common mistakes results from the companies’ approach, by which it is sufficient that they find a good distributor, and it will do the work of breaking into the target market for the company. This approach does not take into consideration the [...]
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 [...]