As every producer knows, having great products is only part of the picture. To be competitive (and, ultimately, successful), you also need the right partnerships with distributors and retailers to position your items commercially so that customers will buy them and you will enjoy high levels of sell through.

Finding the best collaborators in a truly global market may seem daunting, but there are a few tricks that can help you find those best positioned to bring your products to the people who will buy them. In this article, I’ll cover the basics of finding, qualifying and choosing the right distributer and/or retailer partnerships for your products. Then, in a subsequent article, I’ll build on this information to show you channel partner best practices for making the most of those partnerships.

Finding The Right Channel Partner

First things first: before you can choose the right channel partners, you need to find them.

Lead generation for distributors and retailers can come from sales people, independents’ contact lists, referrals from trusted industry sources, or contacts made at trade shows.

You can also investigate your competitors to see whom they rely on. Who is selling their products? What distributor(s) are they using? Which major retailers stock their items? If you have a sense of your niche market – and you can find out who does great work in this area – this is the strategy I recommend.

Qualifying Channel Partners: Distributors vs. Retailers

Qualifying distributors can be a bit tricky; they’re potential clients, so there’s a fine line. Aim for a balance between probing questions and ones that demonstrate your interest in working with them.

For example, if it’s a health and beauty distributor from Hong Kong you could ask which major pharmacies they’re selling in, and how long it would take to open an account. If possible, tie them into a target-distribution agreement with quarterly reviews to motivate their performance. Suppliers are usually keen to get new products to sell, so enthusiasm on their end bears well (especially if they have the connections to make the most of it).

Qualifying retailers is fairly straightforward, by contrast – especially if it’s an established brand, since you already know their target market and their volume capabilities. Get to know the products they sell so you know how yours will fit in. With smaller independent and mom-and-pop shops, aim to meet with the decision-maker to discuss their interest.

Choosing The Right Channel Partner

There’s always a bit of a leap of faith involved in selecting a partner, but if you’ve done your research you should be able to make an informed choice.

Some things to consider before signing the dotted line include: their experience in your area, your anticipated volume of manufacturing and sales (and whether they’ll be able to handle it now and as it grows), and their account management services. These will help you develop a sense of what it will be like to work with them, and how doing so supports your objectives.

Your channel partners are your allies in ensuring sales success, so it behooves you to choose wisely. Do your research, ask questions, and select strategically for partnerships that can grow with your business.