What is a distributor

In recent years, the number of distributors worldwide has been steadily increasing. Being an official distributor is beneficial not only for companies, but also for individual entrepreneurs. Why is distribution so relevant and common these days?

The term "distributor" has several meanings. In the broad sense of the word, a distributor is an intermediary engaged in trading, and, often, marketing activities. Distributors are enterprises that have the right to purchase and sell certain products (most often automobiles, various equipment, software, etc.) in regional (including foreign) markets. With the development of network marketing, the concept of distribution has expanded significantly. Now the concept of "distributor" is most often mentioned precisely in terms of multi-level marketing, meaning a representative of a company that independently sells products by direct sales. In America, the first distributors appeared in the 30s. last century. Then Karl Renborg, a chemist by profession, founded a company engaged in the production and sale of dietary supplements. Each buyer of products became a distributor of the company and had the right to receive interest from sales if new customers were successfully attracted to the trading network. And, I must say, Renborg’s business turned out to be very profitable, the company managed to reach quite decent turnarounds in a short time. Further, the distribution system was also improved by the fact that the distributor of the company made a profit even from the sales of those distributors who joined the trading process not personally to them, but from the filing of distributors that he had once attracted. In the 90s. Russian citizens were robbed of many pyramids that positioned their activities as distribution. But then people simply did not know that the distributor should not begin his career ascent with any entry fees. Today, distribution is an absolutely legal business scheme. Both for intermediary companies and for individual entrepreneurs starting their careers from scratch, all the prospects for high earnings are provided. The key to success in distribution is a high-quality product that the population needs, the price tag of which is adequate in terms of price and quality, as well as the ability to interest, convince, sell. In addition, it is profitable for the manufacturing company to hire distributors, since distributors are able to ensure high sales in regions and abroad, not being a member of the company.

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