A sales agent normally develops opportunities for a supplier and is compensated under an agency arrangement. A distributor typically buys products and resells them through its own channels. Either model can work; the better choice depends on your product, buyer and after-sales requirements.
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The practical difference
The key question is who contracts with the customer and who is responsible for the transaction. An agent may introduce, qualify and support a sale while the supplier remains the contracting seller. A distributor typically purchases for resale, sets its own customer relationships within the agreement and may provide local services. Contract terms vary: do not assume that every arrangement with the same label works identically.
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Compare the responsibilities
Before choosing a route, map commercial responsibility across pricing, import arrangements, customer invoicing, payment collection, product support, warranty claims and returns. The channel partner that can perform these tasks reliably is often more valuable than one with the largest contact list.
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How to evaluate a partner
Ask which product categories the prospective partner already sells, which customer segments it serves, what technical support it can offer and how it handles leads. Check business registration and trading references where appropriate; confirm whether its existing product lines conflict with yours.
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What belongs in a written agreement
Define territory, product scope, lead attribution, reporting, brand and trademark use, service obligations, term and termination. For commissions, agree how qualifying transactions and adjustments are recorded. Exclusivity, if considered, should have measurable obligations and review provisions.
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A sensible first step
Shortlist the buyer segments and map their purchasing journey. Then compare whether direct sales with a representative, a specialist distributor or a mixed channel is more credible for that category. This is a commercial decision, not a one-size-fits-all rule.
Questions this work should answer
- Who signs the customer contract?
- Who imports, invoices and supports the product?
- How are qualified leads and accounts attributed?
- What evidence supports a partner’s channel capability?
Sources and further reading
External references support independent verification. Requirements differ by product and may change.