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Common Pitfalls in Recruiting International Distributors
The sad truth is that most international channel partners do not actively sell the products they represent. In order to succeed you need to have a careful selection process to identify and qualify the best prospective partners
When a company decides to take its first steps towards international expansion, the road to success can seem deceptively simple. Many times they do not even have to make the decision, as it appears as if the world is, after all, beating a path to their door. For a lot of companies, their international launch was triggered by one or more of the following events:
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Why Resellers Don't Sell
Properly structured and supported, indirect channel are often the fastest, most cost-effective way for a company to scale its business overseas. But, the fact is – most resellers don’t sell. And the reason they don’t sell has much more to do with you than your technology, the marketplace or the reseller’s business.
The prospects of partnering with international resellers and gaining access to new markets is an exciting one for any company. It can be quite gratifying to have someone from another country share your vision and be willing to make the commitments and investments needed to help expand your business in areas where you don’t have the time and/or resources to establish a direct presence.
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Setting up an Office Overseas
Setting up an overseas subsidiary may be the right move for some companies, but it is not a decision to be made without careful consideration.
One of the most important decisions management will make when it decides to expand internationally is whether or not to set up an overseas office. For many this is a no-brainer: "Of course we want to run our own show!" They know how to run their business at home, so it is simply a matter of transplanting the same model overseas. However, as is true in medicine, transplanting an organ into a foreign body can carry high risks of incompatibility and rejection. It is an operation fraught with risk and the consequences of making a mistake can be critical to the long-term survival of a company.
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When going international many companies automatically go after the largest markets, but this is often a mistake.
When a company makes the commitment to expand internationally, one of the first, critical questions they face is that of market selection. Success or failure in the first foreign foray will often determine whether the effort should continue, or whether it is more prudent to sound the retreat and withdraw to the safety of more familiar surroundings.
In deciding where to start, there is often a tendency to equate market size with market potential. This is a fallacy sometimes referred to as the "Chinese Market Share Theory". With more than a billion people, all you really need is 2% to be hugely successful. Unfortunately, the largest markets for technology products, especially software, have significant hurdles that can make them quite a challenge.
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WHAT DOES IT TAKE TO SUCCEED? Going international will take time and resources. It will require at least the same thought and preparation that would go into product development. Most software companies have a comprehensive product development plan that
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International Market Selection – Does Size Matter?
When going international many companies automatically go after the largest markets, but this is often a mistake.
When a company makes the commitment to expand internationally, one of the first, critical questions they face is that of market selection. Success or failure in the first foreign foray will often determine whether the effort should continue, or whether it is more prudent to sound the retreat and withdraw to the safety of more familiar surroundings.
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Going International – What Are the Options? There are many ways for a company to go international, and it is important to select the path to market that is best for you. Selecting the right market entry strategy is critical to the success of a company
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Global Sales Boost Your Bottom Line For software companies, going international not only increases their revenues, but it improves their net profit margin as well. the time is right. Software companies that venture outside America for more than 30% of
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Forces Driving Globalization Going international is becoming an imperative for many companies in order to increase the value of their business. Companies that want to build a long term, sustainable business no longer have the luxury of remaining a purely
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