B2B Sales Channels Distributor vs Sales Agent

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Looking to make a decision on whether to sell your products through a distributor or a sales agent? If so, then this video is exactly what you are looking for.

The video explains how business-to-business (B2B) enterprises should go about choosing a B2B sales channel. First, it starts by defining the pros and cons of selling products through a distributor versus selling products through a sales agent.

The pros of selling through a distributor include benefiting from the distributors network of salespeople, their contacts, their knowledge and their market insight. The cons of selling through a distributor include not knowing the final pricing customers see, not fully understanding where your company fits in the distributor's priorities and not knowing what types of mark-up or margins the distributor is taking.

In terms of the sales agent, the pros are that you only have to pay a sales agent a commission on the sale. Also, you don't have to worry about who provides pricing to your customers. When selling through a sales agent, you control the pricing your customers see which means you control market pricing. However, the cons of selling through a sales agent or sales firm include the fact that many aren't committed long-term. Some sales agents aren't product specialists and some will sell anything to anybody.

Finally, the article explains why using benchmarks and key performance indicators is so important when measuring the success or failure of your B2B sales channel - whether it is selling through a distributor or a sales agent.