Many people dream of becoming a distributor. This is not surprising, because a person holding such a position usually receives a fairly high salary, works according to a free schedule, travels a lot, does not sit in the office in one place, and even decides for himself how exactly to do his job. As you can see, this profession has many advantages.

There is only one minus, and it lies in the fact that not everyone knows what exactly the job of a distributor is, and most importantly, how to become one.

To begin with, it is worthwhile to understand that the distributor, no matter what company he works for, is building a sales market for this company. Well, becoming a distributor is not difficult.

The following describes what is required for this, and where you can start.

What does it take to become a distributor?

In fact, anyone can become a distributor. All that is needed for this is a desire to work, and at least an approximate understanding of the functioning of the market for goods and services that the company is aimed at. And, of course, it goes without saying that you need to start the path to becoming a distributor with the choice of an organization whose products you want to distribute.

You can choose both direct manufacturers and intermediary companies. For example, you can be a distributor of a specific Lipton tea, or a wholesale tea shop, then you can distribute products from different companies.

In order to choose who to work for, it is simply worth considering what things or services you would most enjoy selling.

Don't know how to become a company distributor? Follow our advice!

When you have chosen a company whose products or services you want to sell, it is worth first of all to find out how things are with distributors in this company.

Sometimes it happens that the company itself hires distributors, and sometimes the recruitment of people for this position is carried out by an intermediary recruiting firm. This information can be found on the Internet, or in extreme cases, you can write a letter directly to the company.

There is usually no limit to the number of distributors, although there are situations where a firm will assign only one wholesale distributor per area.

In any case, it is possible to break into this position, even if there are no open vacancies. To do this, you can write a letter to the company, or call the phone designated for contacts on cooperation. However, it is very important to prepare in order to be competitive. For this you need:

• Familiarize yourself with the assortment of the company;
• To get acquainted with the market and the current situation in the sale of the company's goods;
• Develop several proposals for increasing sales of the products offered by the company.

How to become a distributor of a foreign company

It is very convenient to work as a distributor in a foreign company, because such companies rarely have a good sales market in our country, therefore, there is a large field of activity, and considerable prospects open up.

In order to become a distributor of any foreign company, one should

• choose a company first
• to get acquainted with its assortment,
• learn about the current situation in the sales of the company's products
• be ready to offer your solution to improve sales.

When contacting a foreign company, you should describe why you are the perfect fit to be a distributor abroad, that is, in your area, and exactly how you can help this company expand its market.

Step-by-step instructions on how to become a clothing distributor

If you like clothes, becoming a distributor for the company that makes or sells them is a great solution. You can work on both wholesale and retail sales.

Once you have chosen a specific company whose products you would like to distribute and get a job as a distributor, having shown your familiarity with the market and competitiveness, you can start working according to the following scheme:

• Assess which category of the population may like the company's clothing;
• Find stores in the city, including online, that are aimed at selling clothes to a category of people who may be interested in the company's products;
• Write down the main advantages of your company's clothing, prepare a catalog of its best products and go shopping with all this, describing how profitable it will be for them to sell the clothes you offer.

Getting a job as a food distributor is the easiest, as there are a lot of food companies, and they constantly need to expand their sales market.

Follow this plan:

• Find a suitable manufacturer or large wholesaler;
• Check out the range;
• Propose your candidacy for the role of a distributor by preparing some interesting ideas for more effective product sales;
• Find retailers that don't already have your products and convince them to distribute them;
• Walk through catering establishments, offering to order exactly your grocery products.

Acting as described above, you will become not just a distributor, but a good distributor.

The concept of distribution came to us from the English language and has become familiar to our ears for a long time. In the most general sense, distribution is a type of activity in which a business entity purchases goods from a direct manufacturer and undertakes an obligation to retail or wholesale these products. However, this activity also includes other areas of work related to the development and implementation of logistics processes, the organization of commodity distribution networks and the distribution of goods.

There are two main views on this small business:

• On the part of the manufacturer of products, distribution is the organization of channels for the sale of goods and the effective management of their movement from the manufacturer to the end consumer.
• From the side of the distributor himself, this activity is considered as a process starting from the placement of goods in his territory and up to bringing the products to the consumer.

Thus, both directions complement each other, and, in accordance with which of them is accepted as dominant, one can distinguish different types of distribution. Legally, even an individual entrepreneur can act as a distributor. But, as practice shows, the most effective way to conduct this activity is through the creation of a distribution company.

General principles of activity

As noted above, in distribution, the interests of the manufacturer and the supplier in the end practically coincide. Therefore, a distributor can act both on his own behalf and on behalf of the manufacturer, indicating himself only as a supplier. As a rule, these approaches are combined.

Between the two main business entities - the manufacturer of the goods and its seller - an appropriate agreement is concluded, in which the principles and conditions of cooperation are clearly distributed and prescribed. They can also be considered as step-by-step instructions for creating a company from scratch. This:

• Product cost.
• The amount of markups applied for goods sold.
• Conditions for conducting wholesale trade.
• Policy of discounts and preferences.
• General description of the market and its regional distribution.
• Target audience of consumers.
• Procedure and conditions for carrying out settlements.
• Terms of sale of marketable products transferred by the manufacturer to the supplier.

The amount of the distributor's income depends mainly on how competently he calculates the profitability of the business, what equipment he will use to run it, whether it is profitable to select premises, transport, and staff for him. Most often, the income of an entrepreneur-distributor has a variable value, because it is determined by seasonal factors of consumption, the volume of supplies of goods from the manufacturer, the time of settlement with buyers on specific terms for each sale.

Legal regulation

It may seem strange, but Russian law does not regulate the distribution agreement in any way. There are no normative provisions about it either in the Civil Code or in other laws and regulations. However, since paragraph 2 of Art. 1 and paragraph 1 of Art. 421 of the Civil Code of the Russian Federation determine that legal entities and individual entrepreneurs are free to choose the terms of the contract (except when these contracts contradict existing legislation), then they act as a legitimate legal act that has no restrictions on the territory of our country.

Some features of the legal registration of a distribution company are available when it is engaged in the sale of goods from foreign manufacturers. However, even here the terms of the contract and other documents require additional study only in connection with the nature of the products being sold.

Pitfalls of distribution

As practice shows, this business idea has its pros and cons. According to experts, the main problems that you need to know about even before the creation of a company and its entry into the markets are:

• Where to start looking for an intermediary market, and how to organize access to it.
• How to hedge the risks associated with distribution activities.
• How to independently assess the prospects of the supplied technologies and goods.

Opening a company in Russia should be accompanied by an understanding that the domestic distribution market is well developed. This is also evidenced by the fact that many product niches have already been distributed and occupied, and stable and long-term ties have developed between manufacturers and suppliers. However, in the system of these relations there is often a rather low level of professionalism.

The main problem for both start-up entrepreneurs who are just thinking about opening a distribution company, and for existing entities, is the price of the goods. This factor brings to life objective obstacles when working with quality products.

To overcome them, many distributors open parallel training centers, where, at their own expense, they help buyers understand the merits of the product offered. Needless to say, this entails additional costs, and therefore requires the novice entrepreneur to be very prudent when choosing a brand that he intends to promote in the retail or wholesale markets.

Another common mistake when starting a business is misjudging the size of these markets. Among the new challenges for distributors is the high level of competition for certain groups of goods and lack of freedom in their promotion. Only a high reputation can solve this problem - that intangible part of the business that is formed during a very long process, but begins from the very beginning of the company's operation.

Eventually

Before you open a distribution company from scratch, you should understand that our country is a huge market for this activity. Therefore, at the initial stage, it is necessary to direct all efforts to the development of your data portfolio for effective cooperation and the development of competent tactics for interaction with both manufacturers and end users.

At the beginning, it is worth understanding why you need to distribute a foreign brand. Everyone thinks it's easy and simple. They are counting on the success of Unilever and Procter & Gamble, not realizing that distribution is a big responsibility.

You need to be aware that in distribution you will earn only in the long term, when you learn how to negotiate with suppliers and form a customer base. You should devote all your time to this. It should not be regarded as an additional business.

Try product

When you decide on the products you want to bring to the Russian Federation, it makes sense to order testers. And it's better not to be stingy and spend 100-200 thousand rubles: apply for a visa to the country where the goods are produced and go to the exhibition. Consider different brands, try it on yourself, communicate with representatives of companies. We fly to such exhibitions every year.

Ask the right questions

When choosing a supplier, I always pay attention to the quality of the packaging. They meet by clothes, so I always ask myself two test questions: "Do I want to use this myself?" Second: "Won't I be ashamed to give this to a loved one?" If both tests pass successfully, then the product can be considered. But it is important to remember that good packaging does not always mean good quality.

Next, it is worth talking with the sellers, because when you cooperate, you will communicate with them or with managers. If they are friendly and open - a plus. You can evaluate the quality of products only upon personal examination, I test men's cosmetics myself.

I bring product testers to Russia, I consult with experts. In our case, I distribute makeup testers to the barbers we work with. They are all well versed in the product and trends, and give good advice.

Select brand

Sometimes it is better to choose a product that is still unknown in Russia. It will be easier to enter the market with it. Satiated and bored brands annoy customers, people are looking for analogues. At the same time, a brand with a big name most likely already has distributors in the Russian Federation, and if not, then its conditions will not be the most optimal.

How much to invest?

To become a distributor, for example, an English brand will have to invest at least 2-3 thousand pounds £ (170-270 thousand rubles). This is enough for the purchase of the first batch of goods. Thus, you can quickly sell it and test the market. Next, you should understand whether the product is in demand and continue the business.

Procurement correctly

You have two options for the development of events. The first is to try to invest about 4-5 million rubles in further purchases, depending on the scope of sales and the cost of a unit of production. Buy, bring and resell.

The second option is to negotiate with the supplier for a delay or for implementation. It is possible to negotiate with a foreign supplier, even if the company does not yet have a recognizable name. But this can only be done with a personal visit to the supplier's company. If you have good English, you have diplomatic skills and are close to European culture, this will not be difficult for you.

Here much depends on you. From how you understand the market, the product, how confident you are in yourself and your capabilities. All this is important when you negotiate with a supplier in a personal meeting. I know cases when almost identical companies agreed on completely different conditions with a supplier for an exclusive product.

One company received the goods without paying anything and received a credit line for the product for 30 thousand pounds (2.7 million rubles), and the second paid the manufacturer 9-10 million rubles to get the exclusive.

How to make a good deal

A company that has its own real production will offer you much more favorable terms for deferrals, sales and payments. If the company does not produce the goods itself, but orders from other factories, then it most likely will not agree to such conditions.

At the same time, listen carefully to the supplier. If you are told that export is not their main task now, but the main goal is the development of the local market, there is no need to harbor illusions and fight at the closed door. Look for another supplier.

Clear goods

The most difficult thing is to bring the goods to Russia. Here it is better to use the conditions of a broker (a specialist in the clearance of goods and goods at customs). He himself will check the documents, control the nomenclature, draw up declarations.

At the same time, when clearing products, you must immediately pay customs duty on all goods and VAT on all imported products. You also pay for shipping and storage services.

Many companies are trying to save on customs and taxes, trying to bypass these points in some way. My recommendation is don't! In no case should you play with the state and taxes. Better form the right price, optimize your business processes, management structure. And you can't run away from taxes. The legal “correctness” of a business is its foundation, on which you can safely build your business further.

In general, there is no need to be afraid of difficulties. You shouldn't go into business if you like to complain. But if you are a silly optimist, everything will work out.

In this article, we will analyze how to become a distributor, what rights he has in the market, what makes up his income. And also what types of distributors exist and why manufacturers need them, how you can become one without initial capital, and what difficulties you may encounter in the early stages.

Why does a manufacturer need a distributor?

Anyone who has thought about devoting their life to commercial activities has probably wondered how to become a distributor. I must say that distribution is one of the relatively new areas of activity that almost everyone has heard of, but few people know what its essence is.

The word "distributor" migrated into Russian from English and is literally translated as "distributor" or "distributor".

A distributor is an intermediate link between manufacturers and dealers, as well as retailers or end users. It can be represented by an individual or an entire company.

In practice, the situation develops in such a way that the product distribution chain can be either short, when only the manufacturer, distributor and buyer are involved, or long, when the dealer is also involved.

If we talk about the difference between a distributor and a dealer, then it lies in the fact that the former operates on behalf of the company, while the dealer operates as an independent entity and purchases products at his own expense.

Another distinguishing feature of the distributor and the dealer is the lack of liability for the delivered goods from the first, while the dealer will be forced to fully answer for the quality of the delivered goods.

So, if the essence of the distributor's work lies in the promotion of products and the creation of a network for its sale, then the essence of the second participant in trade relations lies in the delivery of the product to the final buyer.

How to become a "distributor"?

If you look at the root of the matter, then everyone can become a distributor of a particular product. To do this, it is enough to have enthusiasm and understand the basics of the market for goods and services that the manufacturer is focused on. Well, it is quite logical that it is necessary to decide on the organization, distribution of products that you want to do.

In order to obtain the official status of a distributor of a particular company, it is necessary to sign a special agreement with the latter and become the owner of a certificate signed by the manufacturer's management.

Distributor's rights in the market

The distributor has the sole right to sell the products of a particular manufacturer in the selected region.

In addition, this "distributor" is entitled to receive the agreed volume of goods in accordance with the approved schedule, which is an integral part of the agreement.

In addition, this intermediary has the right to take on the role of a service center for the assigned territory.

Components of a distributor's income

As noted earlier, a special agreement is concluded between the designated intermediary and the manufacturers of products, according to which he receives the status of a representative of the supplier in the distribution of goods.

At the same time, according to the decision of the supplier, the following parameters of such cooperation are determined:

• product price;
• the amount of discounts or markups to the wholesale cost of goods;
• region or target audience among buyers;
• product sales period;
• settlement procedure.

Thus, the distributor's income is mostly formed from margins, which are set to the wholesale price in accordance with the terms of the contract. Such margins are flexible and depend on the period of sale, the volume of goods supplied, the form of mutual settlements, etc. These official representatives cover all their costs from the income they receive in the form of margins.

Types of distribution activities

Depending on the criterion taken as a basis, the following types of distribution activities are distinguished:

• by the length of the distribution channel: short (when only one intermediary works); long (when the manufacturer is represented by several intermediaries);
• according to the form of interaction between the intermediary and buyers: direct, in which the goods immediately go to the buyer; indirect, in which products are resold to other intermediaries;
• on the territory allocate: local or regional distribution; national throughout the country; transnational, where a group of countries in one region operates.

How to become a distributor without investments in your region?

In the age of information technology, when the World Wide Web gives everyone unlimited opportunities, it has become much easier to enter such a business.

To begin with, the product is determined, the distribution of which is planned to be engaged. For these purposes, it will be very useful to study the market situation for the selected product or service.

After the type of product is determined, you can start searching for a company - manufacturer. Large manufacturers, as a rule, opt for those distributors who already have a good reputation and have developed their own customer base.

If someone takes the first steps in this field, then you can start with smaller suppliers.

Now that the type of product has been determined and suppliers have been found, you can begin to draw up a business plan. In this case, attention should be paid to such points as the distribution region, the presence of transport infrastructure, the presence or absence of a customer base, staff, work experience in this area and plans for the distribution of the selected product.

Only after passing all the indicated stages, you can meet with companies and try to conclude contracts with them. In the course of negotiations, it is possible to agree on receiving, for example, test samples of the product or a certain period during which the goods delivered without payment must be sold.

Work specifics

Negotiating with suppliers about products is only half the key to success. In order for a business to flourish, it is necessary to find consumers of products, which is very difficult for those who have just entered this field of activity.

You can try to solve this problem in the following ways:

• direct contact with the owners of retail outlets in the selected region;
• opening a special group in social networks;
• you can also open your own online store;
• try to find business partners by participating in special exhibitions or conferences.

Of course, you can try to start your own business in this area without investing in it. However, the availability of capital will make it possible to move faster in the chosen direction.

Possible initial difficulties

As noted above, distribution is a very contact business. In this case, the presence of counterparties can play a decisive role. And the lack of an established reputation and a big name somewhat complicates the solution of this issue. Therefore, novice distributors must make a lot of efforts to ensure that the budding business becomes successful later.

Conclusion

Thus, distribution requires a huge return in terms of time, financial resources, and so on. In this case, the character and willpower of a person who decides to follow this path can play a huge role.

Instruction

First, you should find a leader who can create a large sales system under him. Throw away the dreams that some perfect distributor will work for you, being content with a small fee, and you may not do anything at all. Finding a key distributor is looking for a partner, and you should know that you can give him in exchange for active work.

The most important thing is to be able to interest a person in your work. Your distributor must be personally interested in the success of your business - only then will he work to his full potential. Young people are ready to work for bonuses, gifts, small percentages of sales, but a good specialist is unlikely to agree to such conditions.

If you decide to make a wide sales network, place search ads distributors in various sources. Effective search for partners through the media: newspapers and television. You can post vacancies on job boards and job sites on the Internet. Announcements are also effective in crowded places: at bus stops, at entrances, at stands with announcements. Some of the people who responded to the ads will be eliminated, but some will remain and will cooperate with you, bringing you profit.

Think about how you can motivate your potential distributors. Keep in mind that many people are already disillusioned and prefer to work for a small but guaranteed salary. You can offer gifts, bonuses, discounts, travel around the world and other opportunities. Stories about real people who have achieved success in the network are effective. It is also important to make the responding people believe in your product, in its high quality, in its significance for everyone. Distributing good products is easier and more enjoyable than distributing low-quality ones.

When talking to people about joining as a distributor, try to be honest, don't promise mountains of gold, but give hope for success. After all, not having received what was promised, the person will not only leave you soon, but will also spread rumors that are detrimental to the company. Be honest with your partners! Think about how you can help these people, what you can give them, and you will get what you yourself are striving for.

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In recent years, the number distributors is steadily increasing throughout the world. Being an official distributor is beneficial not only for companies, but also for individual entrepreneurs. Why is distributorship so relevant and common these days?

"Distributor" has several meanings. In the broad sense of the word, a distributor is one who carries out trading, and, often, marketing activities. Distributors are enterprises that have the right to purchase and sell certain products (most often cars, various equipment, software, etc.) in regional (including foreign) markets. expanded significantly. Now the concept of "distributor" is most often mentioned in the context of multi-level marketing, meaning a company representative who independently sells products by direct sales. In America, the first distributors appeared already in the 30s. last century. Then Karl Rehnborg, a chemist by profession, founded a company engaged in the production and sale of dietary supplements. Each buyer of products became a distributor of the company and had the right to receive a percentage of sales in case of successful involvement of new customers in the trading network. And, I must say, Rehnborg's business turned out to be very profitable, the company managed to reach fairly decent turnover in a short time. Further, the distribution system was improved by the fact that the distributor of the company made a profit even from the sales of those distributors who joined the trading process not personally by them, but at the suggestion of those once attracted by him distributors. In the 90s Russian citizens were robbed by many pyramid schemes that positioned their activities as distribution. But back then, people just didn't know that a distributor shouldn't start their career with any entry fees. Today, distribution is an absolutely legal business scheme. How