A distributor business opportunity is a business opportunity whereby a business person (or organisation) warehouses goods manufactured by a production company and distributes same to wholesalers within a given territory.
Consequently, an individual or company participating in a distributorship business is called a distributor or manufacturer's representative.
From the above definition, it is obvious that manufacturer's representatives (or distributors) render two services to production or manufacturing companies:
1. They provide a warehouse where products manufactured by the production company are stored awaiting distribution to wholesalers within a given region or territory
2. They provide a system whereby manufacturing companies deal directly with only a few customers (the distributors) so these companies can focus on their core business of manufacturing products and improving their internal processes to serve the interests of consumers better
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Starting a distributor business opportunity requires a significant investment in capital because distributors (especially distributors for large national and multinational corporations), must meet certain criteria to be approved to function as manufacturer's representatives.
The criteria that must be met by potential distributors often include:
Keeping up with warehouse requirements, sales targets and regulations cost a lot of money.
Therefore, distributor business opportunity for large corporations is often not for small business people.
However, if you're an employee with lucrative salary (and, hence, access to significant capital) becoming a distributor for a large corporation is a wonderful path to good profit now . . . and long-term income even after retirement.
The key benefit of distributor business is guaranteed income.
Well, manufacturer's representatives offer a great service to production companies. In return, production companies secure their sales by assigning territories to distributors.
What this means in practice is this: When a particular distributor is in charge of a region or territory, all wholesalers of the company's products in that territory routinely buy from that distributor.
In simple words . . . when you participate in a distributor business opportunity for a large corporation, you likely will not be competing aggressively with other distributors of the same company you represent within your assigned coverage region.
Here is the second benefit of distributor business.
Distributors for large corporations do not generally advertise the company's products.
Large corporations usually have massive advertising budgets (and corporate social responsibility projects) that create massive awareness for the company and its products.
Potential customers who see those massive billboard ads, TV ads, radio ads and internet ads of the company's products then buy them in their local stores from retailers.
Retailers, in turn, buy from wholesalers. And wholesalers drive to the closest company distributor to buy the stock they need. And the process repeats itself over and over again.
You can earn consistent income month after month if you're an employee (or small business person) who can raise the capital and meet the regulatory requirements to become distributor or manufacturer's representative for a large corporation.
In summary, distributorship business with a large corporation is a lucrative retirement business opportunity that can earn significant extra income for employees while still in paid employment as well as retirement income for life after they retire from their day job.
Are there distributorship business opportunities for low income earners or small business people with low startup capital?
What opportunities are those?
Well, there are essentially three small business distributorship opportunity for low income earners and everyone else with little startup capital. And they are:
1. Affiliate marketing business opportunity
2. Distributorship business with small scale manufacturers and
3. Mlm network marketing opportunity
Please use the links above to access more information about these strategies to earn extra income and become a self made founder and CEO of your own profitable business.
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