Pros and cons of using agents vs. distributors in your international market entry strategies



AgentDist-1024x651Companies can use a range of business models to organize their direct exporting efforts for their market entry strategies. Some businesses have an export department within the company that is responsible for exporting activities. Others establish sales offices in the target market. This business model enables companies to organize distribution and marketing more effectively.

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If a company wants to benefit from having personnel in the target market but does not wish to invest in sales offices, it can employ overseas sales personnel.

However, companies new to direct exporting should start by selling to an intermediary (distributor) or by contracting an agent. Agents represent the company on a commission basis and can engage in promotional work or help establish deals. Like distributors, they take on the selling responsibility for the exporter, but they do not act as a company customer.

The advantages and disadvantages of using agents or distributors are further discussed in the following video excerpt from the FITTskills International Market Entry Strategies Course.

This content is an excerpt from the International Trade Finance course textbook. Enhance your knowledge and credibility with the leading international trade training and certification experts.

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About the author

Author: Jacob Varghese

Jacob is the VP of Marketing and Technology at the Forum for International Trade Training. Focused on improving the customer experience. A Content chef; words, images, some code and a healthy serving of web analytics.

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