Distributor’s Scope, Choices to Make
Defining the Scope of Distribution
Selling your product through a distribution agreement can be a great way to get your product into retail. Within your agreement with a distributor, a scope of distribution will need to be defined. Here are four major items to think about before moving forward.
Territory:
Define the area in which the distributor will be selling and promoting the product.
Products:
Specify the product or product lines and the brand(s) that will be represented.
Term:
Clearly state the length of the relationship and any renewal terms.
Exclusivity:
Explain the limitations of the distributorship within the territory.