International Sales Channel: Models, Partner Selection and Profiling

Design your international sales

channel for successPMMI Annual Meeting 30 October, 2013

Why….

So let’s “re-engineer” B2B industrial business

development

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So…on to international channel


Let’s jump right into distribution

NO!!

So…on to international channel


Let’s jump into distribution….not


Easy……………………………………………..Project

Channel flavors


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Channel flavors

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1. Sell remotely (internet, skype, email, etc.)


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Channel flavors

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1. Sell remotely (internet, skype, email, etc.)2. Reps (no resale)

2


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Channel flavors

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1. Sell remotely (internet, skype, email, etc.)2. Reps (no resale)3. Agent (no resale, but they have some

authority)

2 3


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authority)4. Distributor (possibly various levels)

2 3 4


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authority)4. Distributor (possibly various levels)5. Employee (leased or direct)

2 3 4 5


Scale


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authority)4. Distributor (possibly various levels)5. Employee (leased or direct)

2 3 4 5


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authority)4. Distributor (possibly various levels)5. Employee (leased or direct)6. Office

2 3 4 5 6


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authority)4. Distributor (possibly various levels)5. Employee (leased or direct)6. Office7. Subsidiary

2 3 4 5 6 7


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authority)4. Distributor (possibly various levels)5. Employee (leased or direct)6. Office7. Subsidiary8. JV (joint venture)

2 3 4 5 6 7 8


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authority)4. Distributor (possibly various levels)5. Employee (leased or direct)6. Office7. Subsidiary8. JV (joint venture)9. Acquisition

2 3 4 5 6 7 8 9


How do you select the right one?


Telling the legitimate “partners” from the “dogs” isn’t so easy!

And sometimes….


Exclusive agreementsHR complicationsIP exposure (trademarks)Fraud FCPALeaving money on tableProvide competitive fodder

And what are risks of a mistake?


Have a clear “ideal profile” Cultural (not country, but business approach) fit is

critical Embrace folks that will invest in travel to your facility for

training The right match will welcome your frequent travel for

joint sales calls (and you will drive activity, learn about the market, teach them product and how to sell it, etc.)

Understand and sell how your product will be important enough to them to replace another

Picking the Right Match


If distribution or agent/rep Trade shows and delegations US Department of Commerce “Gold Key Service”

Find great customer projects (e.g. multinationals) and then ask them who they would want to buy it from. Approaching a strong local distributor with a ready order makes it easy

Don’t find them by accident. Know what markets you are pursuing, what model you plan to use, what ideal profile elements are not open to compromise and what has worked for you in the past.

Your success depends on these folks – do you hire employees just because they approach you with an email inquiry!!??

Finding Channel Partners


Have locally vetted contracts for any sort of engagement

Never agree to exclusivity (you can function that way, for some time, but make it clear it is ‘at will’)

Expect dedicated sales resources Always seek to upgrade (like GE employee

management) Most markets require multiple distributors

Contracting with Channelassuming distribution/rep


Mutual Value


The right channel partners won’t be waiting around to sell your products. They’ll need to be sold.You should have a business model:• Understands local market opportunity• Explains how your product compliments their others• Outlines lifetime value of a customer• Includes reasonable sales projections and

investment obligations over two years• Explains your ideal partner profile• Asks them to outline how they will sell (committed

reps, other products dropped, projections, etc.)

Building the financial model & business case


Sales Channel cannot be built by accident – it requires a deliberate and proactive effort

Sales Channel

http://www.youtube.com/watch?v=NoYSlo-mBaE


Whitepaper – Six Critical Phases of Channel Management

eBook – Channel Model Selection Considerations

Infographic – Channel Management

Video – Global Channel Management

Checklist – International Channel Management

All rolled up into an International Channel Management toolk

it available for download here

Resources for

Sales Channel

http://www.pmmibizdev.com/



Channel Management

One element of an integrated global business development approach.


www.PMMIBizDev.comEd MarshPrincipalConsilium Global Business AdvisorsM +1 978 238 [email protected]


Contact me for assistance



mailto:[email protected]

http://www.ConsiliumGlobalBusinessAdvisors.com/

International Sales Channel: Models, Partner Selection and Profiling

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