Agent or distributor?

Whether an agent or a distributor is better for you depends on the circumstances and what you are trying to achieve.

Considerations include:

• Which agents or distributors have access to your target customers.
• Your existing operations, and how the new intermediary can fit with them. For example, if you want to keep an existing sales operation (such as a sales force, telesales team or online sales), you will need an intermediary who is happy to work alongside that.
• What rights and responsibilities you want to be included in your agreement with the intermediary.
• How closely you want to be involved in the sales process. It can be easier to have more control over how an agent handles sales.
• What type of relationship you want to have with the ultimate customer. Using a distributor may distance you from the ultimate customer.

Agents are often preferable for making high value, complex or bespoke sales. You will also need to use an agent if you want to sell a service, which you must deliver it - the agent cannot do so. Distributors, such as wholesalers, are often used for making lower value sales of relatively straightforward products.

For more information about agents, see 'Dealing with an agent'.

For more information about distributors, see 'Dealing with a distributor'.

Always take legal advice if in doubt.