What is distributorship? Intermediaries, which are frequently preferred by commercial enterprises to expand their customer portfolio and increase the sales rate, and which they use as a means of carrying out activities such as advertising and promotion, are called Distributors . Distributorship is a sector that can be served by both real persons and legal entities.
Intermediaries used by commercial companies by giving distributorship instead of opening branches or creating an area for sales activities in each region provide great benefits to companies.
Distribution companies that promote the products or services of companies to large audiences, carry out advertising and sales activities on their behalf, provide customer support services and work to expand the portfolio are very advantageous in terms of earning without capital .
They can earn profits by selling the products of existing companies that have their own customer base and that produce and ship themselves, without the need to stock up. Some distributorship companies or real persons doing this business may prefer to sell by making stock.
Sometimes, this situation ceases to be a choice and is stated as a requirement of the contract signed with the company. However, it is known that the distributors generally do not keep stock and supply the product from the company according to the demand.
The terms of the intermediation are determined by the scope of the contract with the firm. Depending on this contract, the people or institutions that receive distributorship sometimes only undertake the task of advertising promotion, sometimes in addition to this task, the sales and marketing process. Legal entities that act as distributors can also take responsibility for after-sales customer support .
How to Become a Distributor?
Legal or natural persons who want to be a distributor must submit an offer to the companies. Sometimes companies post advertisements that include regular distributorship requests in a region. Persons or organizations that meet the required criteria by applying to these advertisements can obtain distributorship authorization .
In order to follow the advertisements, the official site of the company that you want to get distributorship should be examined. Now, every big company is looking for intermediaries to represent itself in various countries in order to have a say in global trade. For this reason, there are many alternatives in the field of distributorship.
The most important point that you need to pay attention to in this productive sector where you will not have trouble following the advertisements or finding a job is that you reflect the brand value of the company you represent.
If you fail to fulfill the conditions specified when you undertake the distributorship role of the company you have agreed with, or if you fail to meet the desired sales-marketing limit, your contract may be terminated. For this reason, you need to evaluate the expectations of the company you want to get distributorship from you.
First of all, if you engage in distributorship activities that exceed your capacity just by being deceived by the abundance of your earnings, your entrepreneurial activity may fail. Instead, it is extremely important for your commercial success that you analyze your own business capacity and area of responsibility and request distributorship.
The acceptance conditions expected from the applicants by the distributorship companies are generally as follows:
- The company capacity and distributorship references of those who want to get distributorship as a legal person are sufficient.
- The fact that real persons have completed the necessary training and gained experience in the sector they want to be a distributor.
- Commitment to fulfill the specified sales-marketing lower limits after getting distributorship.
- Providing customer support services on behalf of the company that legal entities receive after-sales distributorship.
- Giving a commitment to show the necessary activity in the regions where sales are desired.
- Making a presentation only within the framework determined by the company in advertising and promotional activities and establishing customer relations on maximum positivity.