Expand Your Reach with Distribution Channels

This week we're taking a brief detour from the usual finance discussion to talk about sales & marketing... particularly distribution.

A quick story

I recently met with an executive who shared a story about investing in a business with an excellent product (best in the market) with no sales plan, no marketing plan, and no appreciation for how the product would be distributed. They had the best product so they'd take the market, right?

A few months later, a "less good" competing product with a strong marketing effort came along and made their way into national retail chains. Guess what happened to the business with the better product?

What is distribution?

So you have a product or service, how do you plan to get it to your customers?

It's a concept distinct from sales and marketing. Distribution refers to the channels through which you sell. Here's a quick breakdown of the differences.

For example, maybe you sell t-shirts online and in physical retail stores.

Your distribution channels are direct-to-consumer (i.e. you sell directly to the end user of your product). Alternatively, if you sold to resellers like Target or Walmart, then you might be wholesaling. The latter approach has the potential to reach many more customers (Target and Walmart are big companies!) but your sale price might be a bit lower.

Other examples:

Reaching the largest audience possible is what we’re aiming for with distribution. The more potential customers we can reach, the better.

Keep this concept in mind as you’re launching new products or services, contemplating partnerships, or evaluating new channels to sell your product. Ask yourself a few questions as you build your distribution:

The best way to use this information is to keep testing different channels until you find the 2-3 that work best for you. Check out the book Traction by Gabriel Weinberg for a deep dive on various channels.

What distribution channels are you currently selling into? Are there opportunities you've overlooked, ignored, or haven't thought about? The best way to approach this is to look at how others in your industry are distributing their products and services.

We have a handful of exciting projects in the pipeline but let's stick to the content roadmap for now. Here are some items on the docket for the rest of 2024:

On that last note, please fill out the form below to let us know what topics or content you need in your business.

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