Selecting the overseas partner who is right for you, is a crucial element when it comes to
market penetration, marketing of your products or services and to guarantee a stable, well-
managed presence overseas. The search for this key player in your organisation can be, and usually is a tedious, drawn out process.
At International Team Consulting, our mission is to take on this burden, it is our job to find
the ideal partner for you, be it a distributor or agent, end customer, etc. We provide a short-list of candidates from which you select the most suitable to your needs.
Our systematic approach guarantees optimum results:
The first step is to agree a detailed profile of the figure you require.
Using this profile, we make a systematic search in the market for potential candidates and contact them on your behalf.
These contacts, are used to filter out companies that do not match the profile. Those that do are then contacted with a view to obtaining further information on their activities, finances, references, etc.
The final stage is to pinpoint those companies that, not only fit the profile, but that have also expressed a specific interest in both your products and the company itself. Thus your bespoke short-list only contains highly qualified candidates.
As required, we can also provide you with or review distributor/agent agreements.
We can also provide support and advice during the whole negotiation process, including, if you so wish, a ITC consultant present at meetings and negotiations.
2. FRANCE GERMANY SPAIN
Focussed and
Centralised
Distribution
YES YES NO
Competitive
Pricing YES YES YES
Agent
Law
Very strict Strict Strict
Ease of finding
agents
3 2 1
Ease of making
appointments
1 2 3
1. General Market Features (I)
3. FRANCE GERMANY SPAIN
Terms of
payment
2 3 1
Solvency 2 3 1
Cultural
Proximity
2 1 3
Purchasing
Power
2 3 1
Language
Skills
2 1 2
1. General Market Features (II)
5. 3. Differences between agents and distributors (I)
Distribuitor Sales Agents
Buys and sells Sales agent
Margin on sales Commission
Stock No stock, ocassionally showroom
After-sales & Tecnical service No after-sales ervice
Manages all aspects of promotion,
Sales policies, logistics
Sales mangement
Covers risk of non-payment by
third parties
Principal manages non-payments
Sole distributor – sales and unpaid
invoices
Diversification
Loss of control Closer control
False distributor Exclusivity
6. 3.Differences between agents and distributors (II)
Distribuitors
Standard products
Technically complex products
Large margins
Large orders
Short delivery terms
Many customers
Can have very diverse customers
Agents
Standard or bespoke products
Products without after-sales
service
Lower margins than distributors
Large or small orders
Customers often have to accept
longer delivery terms
Many or few customers
Limited sales zones
8. 4. How to find sales agents from least to most
effective (I)
• Get lists of possible agents from Overseas Trade Offices:
• Consult international directories that descibe company activities (ie. Kompass,
Europages)
• Place an advert with the French National Association of Sales Agents &
Intermediaries:
9. • Word of mouth: ask manufacturers of complimentary products if they can
recommmend anybody.
• Taking part in meetings of sales agents.
• Place an advert in specialised publications in target country. Check old issues first.
• Advertise in your stand if you are exhibiting in fairs.
• Search Google.fr using advanced search options.
4. How to find sales agents from least to most
effective (II)
10. • Check products that may be complimentary to our own and which may
make an agent's portfolio more attractive. Names?
Check the webs of Eeuropean manufacturers associations. These
can be requested from Overseas Trade Offices or can be found in the
virtual pages of sectorial fairs.
You can find these manufacturers using Google searches.
4. How to find sales agents from least to most
effective (III)
11. 6. Factors to evaluate a commercial agent
CHECK LIST!!!
Personal profile
Professional profile
Sales team
Turnover
Product mix
Customer profile
Territorial analysis
Available resources
12. 7. Sales contract
Contracting parties
Object of the contract
Products
Territory
Market segment: potential
customer base
Exclusions: existing customers
or large customers
Contract term: temporal/
indefinite. Exclusivity:
segments / sobre territorial
No-competition
Confidentiality
Contracting parties
Object of the contract
Products
Territory
Market segment: potential
customer base
Exclusions: existing customers
or large customers
Contract term: temporal/
indefinite. Exclusivity:
segments / sobre territorial
No-competition
Confidentiality
Company obligations
Functions and obligations of
the agent
Commissions and how they are
paid
Sales targets
Compensation
Post-termination orders
No-competition clause
Motives for temination
Non-transfer
Law and jurisdiction
Company obligations
Functions and obligations of
the agent
Commissions and how they are
paid
Sales targets
Compensation
Post-termination orders
No-competition clause
Motives for temination
Non-transfer
Law and jurisdiction
13. 8. Guaranteeing success (I)
► RECRUITMENT PROCESS
Should be meticulous and all questions and points should be openly tackled.
Reject troublesome, over-demanding or arrogant candidates, however much
experience they may have.
Check references. Speak with the other companies they represent.
14. 8.Guaranteeing success (II)
► THE CONTRACT
• It shoud be fair to both sides, but in line with the company's standard model:
you can't have a different contract for each agent. It should not be over-
generous nor over-rigourous. Never give in to unreasonable demands.
• You should include a trial period of at least six months.
• The contract should specify sales targets. If this is not possible, the trial period
should include a plan of mandatory sales activities.
15. 8.Guaranteeing success (III)
► GETTING THE RELATION OFF ON THE RIGHT FOOT
• If the agent needs company training, do it as soon as possible. It is in everybody's
interests to start as soon as possible and the formative period is a chance to get to
know the agent better.
• Answer all the agent's requests for prices, samples and information promptly.
• Make a joint visit to customers during the trial period. This will give you a good idea
of how the agent handles himself with customers.
Don't “forget” your agents: at the beginning he is going to need all your support and a
strict follow-up. It is all to easy to get tied up in the day-to-day.
An agent who doesn't ask questions, doesn't phone or send mails IS NOT WORKING.
An active agent will, sooner or later, will bring in the orders.