Effectively managing agents and distributors is one of the key elements to developing your export business - and can also be one of the most challenging.

No two agents or distributors are the same, and most markets vary in regard to culture, business practice and product or service expectations. The most successful companies have common business practices and procedures for their export business, but also understand that a flexible approach and the ability to adapt their management style is required to meet cultural and local norms.

Exporters that view their agents and distributors as an integral "internal" resource are usually the most successful. They take the approach that they are working for the agent or distributor, and therefore if the agent's or distributor's business grows, then so should theirs.

Aligning the export business means understanding and setting payment terms to suit export market requirements whilst managing risk, understanding shipment requirements and Incoterms and ensuring that literature, communications and marketing messages are in line with cultural norms.

So, where do you start?
The first place to start is to understand what you want your agent or distributor to do. Most exporters will say they want their agent or distributor to sell, but this is not the only task you need them to perform. Do you want your agent or distributor to undertake marketing, have specialist support or technical functions, provide training or have a particular financial capacity? Once you have defined what you want them to do, you can move on to the second stage which is to create a profile of the ideal Agent or Distributor. This profile should cover all areas of your business and its requirements. Ask yourself: "What are the traits and characteristics of a successful agent or distributor that will meet my business demands".

Only when these two areas are complete can you move on to research and selection of your prospective partner. In using the two parts of the profile created, you should be in a position to make a more informed decision.

If a distributor or agent has to be replaced or dismissed, the focus must be on business continuity. Decide what could be a worst case and build a strategy based on this. Do not forget to take local agency laws into account and always take independent legal advice before considering any changes.

Tip: Experienced exporters will consider the consequences of terminating an agent or distributor BEFORE appointing them - to ensure that they are aware of all applicable legislation, business continuity requirements including impact on current and past customers. This is not a negative trait - it is ensuring that the exporter has researched and prepared their business plan moving forwards, and is prepared for all possible eventualities no matter how far away they may seem.

This topic, and more, are extensively covered in the Ebook: Appointment and Management of Agents and Distributors.