Insights — Channel Creation & New Revenue Streams — 3 min read
How to Choose the Right Distributor
The most dangerous mistake in channel growth is choosing a distributor based on their size alone. The 'right' distributor is the one whose commercial goals align with your own.
In short
To choose the right distributor, evaluate candidates against four key criteria: Market Access (do they already sell to your target customers?), Technical Competence (can they support the product?), Financial Stability (can they weather market cycles and hold stock?), and Cultural Alignment (do they share your sales philosophy?). The best choice is usually a distributor for whom your product represents a 'top 5' growth opportunity in their business.
When a business is eager to enter a new market, the temptation is to sign the first distributor that shows interest. This is almost always a mistake. Choosing a distributor is a long-term commitment that is much easier to enter than it is to exit.
The 'right' distributor isn't necessarily the largest one in the territory. In fact, a market leader often lacks the motivation to push a new brand. You are looking for a partner where your product will be a priority, not a footnote.
The Selection Matrix
Use a weighted scoring system to compare potential partners objectively, rather than relying on the quality of their pitch deck.
| Criterion | What to look for |
|---|---|
| Current Portfolio | Do they sell complementary products? If they sell a direct competitor, how will they prioritise yours? |
| Sales Resource | How many people are in their field sales team? Is it a dedicated team or a shared resource? |
| Technical Support | Can they handle first-line support and warranty claims, or will every query bounce back to you? |
| Marketing Capability | Do they actively generate their own leads, or do they wait for you to provide them? |
The 'Hunger Factor'
A large distributor with a massive customer base sounds ideal, but if your product represents only a tiny fraction of their revenue, you will never get their attention. A smaller, 'hungry' distributor who sees your brand as their path to market leadership is often a better bet.
Ask them: 'Where does our product fit in your growth strategy for the next three years?' If they can't answer specifically, you are just filling a gap in their catalogue.
Due Diligence: Beyond the Website
Evans Sales Consultancy advises a 'trust but verify' approach. We recommend speaking to at least three of the distributor's existing suppliers and, crucially, three of their customers. This reveals the reality of their service levels and market reputation, which is often very different from their own marketing materials.
Could your business support another route to revenue?
Evans Channel Creation identifies, validates and builds additional revenue channels from capabilities a business already has — B2B to D2C, D2C to B2B, product to service, recurring revenue or partners — and says so plainly when a channel should not be built. Programme from £1,995 + VAT per month over six months.
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