Foreign Agents or Distributors
There are several ways to export a product into an international market when it does not need to be shipped directly to consumers. Companies often search for foreign agents or distributors who live or operate in those markets and already have established networks to market and sell within a country. This approach has a few advantages, such as utilizing the agent or distributor's on-the-ground knowledge of the local market and allowing them to troubleshoot problems that could be difficult to do outside the country. Companies must find trusted partners if they want to do this since those partners will have some control over the company's local operations.
Although agents and distributors play similar roles in accessing local market knowledge, the structure that companies use to work with them is different.
Agents
Typically. agents will make connections with potential customers to finalize sales and be paid a commission based on the sale price.
Benefits of Agents
The business maintains greater control when using an agent. The company maintains direct contact with customers and has greater influence over marketing.
Distributors
A distributor buys products from a company at an agreed-upon price and maintains stock for local customers.
Benefits of Distributors
The distributor provides an immediate financial benefit to the company by buying the product upfront. The distributor takes on the financial risks of selling the product.
Source: Saylor Academy
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