Rod Drury: How to start a business – Part 5

Selling your product to the world – very revelant to NZs ability to stay in touch with a rapidly developing global enconomy.

NZHerald article

Rod highlights the typical path for going global i.e. the use of distributors in the countries you wish to sell yoru product. Making contact via conference/ tradeshows /internet networking sites. In a two tiercommission model (distributor and reseller ) you should expect to give away 50% of your sale price. Investigate potential distributors by seeing what else they sell and whether this competes with your product Also have the got a proven track record in the region.

Rod makes a note of mentioning the importance of a performace clause as it can provide you with an exit strategy if the distributor’s performace is low.

He also recommends to

  • start them off with fairly achieveable goals
  • provide them with all the information they need about your product
  • pay them a visit to see how they sell your product and learn about this offshore market.
  • use a deal registration commission practice

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