What Is A Distributor

What Is A Distributor
What Is A Distributor

Video: What Is A Distributor

Video: What Is A Distributor
Video: Wholesaler Vs Distributor Difference Explained 2024, May
Anonim

In recent years, the number of distributors around the world has been steadily increasing. Being an official distributor is beneficial not only for companies, but also for individual entrepreneurs. Why is distributorship so relevant and widespread these days?

What is a distributor
What is a distributor

The term "distributor" has several meanings. In the broadest sense of the word, a distributor is an intermediary who carries out trade and, often, marketing activities. Distributors are enterprises that have the right to buy and sell certain products (most often cars, various equipment, software, etc.) in regional (including foreign) markets. With the development of network marketing, the concept of distributorship has expanded significantly. Now the concept of "distributor" is most often mentioned in the context of multilevel marketing, meaning a representative of a company who independently sells products by direct sales. In America, the first distributors appeared already in the 30s. last century. Then Karl Rehnborg, a chemist by profession, founded a company engaged in the production and sale of dietary supplements. Each buyer of products became a distributor of the company and had the right to receive interest on sales upon successful involvement of new customers in the sales network. And, I must say, Renborg's business turned out to be very profitable, the company managed to reach fairly decent turnovers in a short time. Further, the distribution system was further improved by the fact that the distributor of the company made a profit even from the sales of those distributors who did not join the trade process personally, but from the filing of the distributors they had once attracted. In the 90s. Russian citizens were robbed of many pyramids that positioned their activities as distributors. But then people just didn't know that a distributor shouldn't start their career ascent with any kind of entry fees. Today distribution is an absolutely legal business scheme. Both intermediary companies and individual entrepreneurs starting their careers "from scratch" are provided with all the prospects for high earnings. The key to success in distributing is a high-quality product that the population needs, the price tag for which is adequate in terms of price-quality ratio, as well as the ability to interest, convince, and sell. In addition, it is profitable for a manufacturing company to hire distributors, since distributors are able to ensure high sales in the regions and abroad without being on the staff of the company.

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