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Business Manuals


How To Develop a Worldwide
Distributor Network


The development and implementation of a successful distributorship program for your product must be the result of careful planning and implementation. When you select a product, your choice should be based upon your knowledge of how it will be marketed, and who will be your target audience. You may have the greatest bargain in the world, but it will be of no value to you if you don't know who's going to buy it or how you are going to get the word out about it.

To make a fortune selling a new product you must be able to produce or buy your product for pennies and sell it for dollars. Also, you must do some preliminary market research to determine who will buy your product, asking yourself, "How much will the majority of this market be willing to pay for the product?"

For the sake of our discussion, let's say that you've written a "How To" manual addressing the achievement of $100,000 a year by compiling and selling mailing lists. You check with a number of printers and get a production cost of $1.50 per book in lots of 1,000. You figure that with sharp advertising you can sell a million of these books at $10 per copy, but that advertising will cost you $1.50 per book. Thus, the basic cost of your book is $3 per copy. Even though you will probably be the primary seller of most of your books, you must realize that it will take you an awfully long time to move out a million copies by yourself. It will keep you busy 25 hours a day, 8 days a week working alone. Thus, the sensible thing to do is recruit as many other people as you can to help do the selling. This means setting up a distributor network.

To construct a successful, money-making network you must make it worthwhile for other people to sell your product. You have to offer a percentage of the sales price on each book the distributor sells for you. Generally, this is about 50% for each single copy sold, 60% when purchased in quantity lots of 25 to 99 copies, and 75% when
purchased in lots of 100 copies or more. Your biggest success will come as you shave your own profit per book to a minimum when you have other people doing the work for you. Although this will lower your profit per piece, the total profit created by volume sales will more than compensate for the difference.

Let's return to our example of a book that costs you $1.50 to produce in lots of 1,000. For people who buy from you in lots of 100 copies, you could cut your profit to $1 per book, selling it to them for $2.50 per book. The dealer is then responsible for all the advertising and promotion, as well as the actual selling. If you plan to dropship the books to the dealer's customers and to provide selling materials, you may choose to decrease the dealer discount you offer, or to implement a dropship fee to cover yourexpenses for this service.

Setting up your distributor program will require the development of advertising copy and a sales kit for the sellers. Thus, you should make up a series of "Dealers Wanted" ads and place them in as many different publications as possible. The national opportunity magazines are the best place to advertise for dealers. Remember, the ad should be a call for dealers, distributors, and independent extra income seekers. Do not try to sell your product in this ad. Use it only to enlist or recruit people to sell for you. Remember, the more you run your ad and the greater variety of publications in which
you run it, the larger the response you'll see and the larger the network you'll develop for marketing your book. You'll lose your shirt attempting to recruit sales people via direct mail, and you'll never make any headway with only a "Dealers Wanted" insert in each book you sell. If you want sales people you must advertise for them.To convert interested opportunity seekers into bonafide sellers of your product you'll need a dynamic sales letter and seller's kit to send out in response to the inquiries your ad produces. This kind of sales letter is usually four pages in length, printed on 11 by
17 inch paper and then folded in half, book style. However, if it takes 10 pages to sell the prospect on the idea of becoming a distributor for you, use the amount of space and paper necessary.

In addition to your sales letter you should have at least three camera-ready ads that the opportunity seeker can use to advertise your product. These should include a classified ad, a one-inch display ad, and a larger 2-column by 3-inch ad with blank spaces for the
insertion of the dealer's own name and address. Also include at least one full-page camera ready circular for use as an original in printing direct mail circulars. If you've written your sales letter properly, that's all there is to it. Some people charge an "up-front" dealers' registration fee. We don't recommend this as such a charge immediately eliminates a great many people who might want to at least try to sell the product for you, but are not willing to pay to sell for you.

Some sellers charge $1 to $5 for details and complete dealership set-up to offset the cost of the initial seller's kit and postage. We recommend you use this method at the start. If you offer your program for nothing, you'll get as many responses from curiosity seekers as from bona fide prospects. If you charge for the dealership set-up, you should include a sample of your product. For the more elaborate sales kits promoting expensive products, most people ask for a deposit that is refunded after a certain number of sales are made by the dealer. Any charges above $5 should not be mentioned in your "Dealers Wanted" advertisements, but held over and fully explained in your sales letter.

These are the nuts and bolts of setting up a dealer/distributor network and getting other people to sell your product for you. You can make it happen! Begin only after you have thoroughly laid out your plan. Do not place your first ad recruiting dealers until you
have examined every angle, determined the size and viability of your market and produced your sales literature and promotional packets. Proceed only as you can affordthe advertising costs from the profits of your product sales.

It's simple, easy, and it can make you rich! You had to have real interest to have ordered this report. We hope it has motivated you with the entrepreneurial spirit and that you act on it!

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