Sales Partners - Agents, Distributors, Licensing and Franchises

Written by Stuart Ayling

When I'm speaking with clients who are looking for ways to expand their businessrepparttar conversation often comes around torepparttar 127360 possibilities of using agents, distributors, licensing arrangements or a franchise.

These sales partners have a lot to offer. But it's important to understand what each type of partner means for your business (equally so for online enterprises).

The term 'franchise' has become a common way of describing a business relationship whererepparttar 127361 franchisor allows other people to sell their products or operaterepparttar 127362 same type of business underrepparttar 127363 same name, usually within a designated area. But there is more to it than that. Much more. Legal obligations, management control, customer service and pricing are involved. And often 'franchise' is notrepparttar 127364 correct term forrepparttar 127365 relationship being offered.

Let's Have Some Definitions... Agent: A representative for your company who will find buyers and sell your products. Paid by commission on sales achieved. Stock is not usually held by an agent.

Distributor: An enterprise whose business is to buy merchandise for resale, usually to retailers or other industrial and commercial users.

License: A formal permission or authority to do, or not to do, something which otherwise would be a legal wrong. Often used when dealing with merchandise or procedures protected by trademarks and patents.

Franchise: A privilege granted by one organisation (the franchisor) to another (the franchisee) to sell, produce or use its products. Different types of franchises include: * A product franchise - which acts as an outlet for a particular product. * A system franchise (usually called a business format franchise) - which is authorised to conduct business according to a system developed byrepparttar 127366 franchisor. * A process or manufacture franchise - for whichrepparttar 127367 franchisor supplies a critical ingredient orrepparttar 127368 know-how for a production process.

According torepparttar 127369 Franchise Council of Australiarepparttar 127370 most common franchise method isrepparttar 127371 business format franchise, with 708 different systems being offered in Australia.

Typically each type of sales partner is subject to geographic restrictions of some kind, such as a pre-defined territory. Depending uponrepparttar 127372 situation this may be part of a metropolitan area, a state, or an entire country. Ideallyrepparttar 127373 size ofrepparttar 127374 territory should be based on sales and/or profitability benchmarks. This is sometimes tough to calculate for new products and services. 

At timesrepparttar 127375 definitions may overlap. For example a 'manufacture franchise' may berepparttar 127376 same as a 'license' for a manufacturer to produce certain items. The legal boundaries can be quite puzzling and expert assistance should always be sought.

Of particular importance isrepparttar 127377 requirement of a business format franchise to offer comprehensive training, support, business management procedures and marketing programs. This all-inclusiveness is a hallmark of a true business format franchise. 

It takes a long time to developrepparttar 127378 systems and knowledge required to create a business format franchise that conforms torepparttar 127379 Franchising Code of Conduct and that will be of interest to serious franchisees.

Show and Tell

Written by John Boe

Do you look for ways to involve your customer during your presentation or do you just babble on hoping you might say something that will generate a sale? Regrettably, unsuccessful salespeople display poor listening skills and have a tendency to talk too much. They use a “show and tell” sales presentation style that can quickly turn a customer off and cause them to mentally shut down. Onrepparttar other hand, by developing your listening skills and finding ways to keep your customer actively involved in your presentation, you will dramatically increase your sales effectiveness and close more sales!

Several years ago, I heard an interesting story about a safety glass salesman named Bill Johnson. Bill wasrepparttar 127359 top producer in his company and consistently outsoldrepparttar 127360 other salespeople by a significant margin. One dayrepparttar 127361 owner ofrepparttar 127362 company congratulated Bill for setting a new quarterly sales record. The owner was curious about Bill’s outstanding accomplishment and asked him what he felt wasrepparttar 127363 secret of his success. Bill replied he was sellingrepparttar 127364 way he had been trained to sell, but that he had added something to his presentation. He stated that during his sales presentation he used a hammer to strikerepparttar 127365 safety glass several times to demonstrate its strength and durability. Excitedly,repparttar 127366 owner asked Bill if he would be willing to teach his hammer technique torepparttar 127367 other salespeople atrepparttar 127368 next company training meeting.

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