However, there has been an increasing trend in some EU Pros Even Start-Ups Can Hire Highly Experienced Independent Sales Reps. Independent sales representatives tend to be experienced and successful. Agents and distributors are two of the important ways to let your products or services reach out to a large section of the population. The agent may negotiate and conclude the sale of goods on behalf of and in the name of that principal. The most obvious disadvantage is the reduction of control over the activities of the distributor â managing how products are sold in each country, how prices are set or how products are ultimately marketed. Reducing selling and distribution costs: If a service firm needs to contact every potential buyer, the cost would be higher.For example, travel services command a wide market and meet even the minute requirements of the tourists. Advantages & Disadvantages of Marketing & Sales Intermediaries. ... such as agents, wholesalers, distributors and retailers. founder David Walker returns to explain the difference between an agent and a distributor before guiding company owners on the most suitable arrangement.. This remains with the supplier. Here are some main differences between agents and distributors. Distributor advantages : Choosing a B2B Sales Channel: Pros and Cons of Distributors and Sales Agents Deciding upon a B2B sales channel is an involved process. Once the agent has effected an introduction, the supplier/principal will then sell the goods/services direct to the consumer. As for the position of distributors, apart from Belgium, no country in the European Union has equivalent specific legislation protecting distributors. Itâs important to point out the disadvantages too, to decide whether a distributor is the right route for your business. If you want to grow your business and increase sales, you have a choice. Please do send us the Solution Advantages, Disadvantages of Distribution problems on which you need Help and we will forward then to our tutors for review. Agents and distributors are often referred to interchangeably, but there are crucial differences Grid Law. The role of the agent is to find customers for their principal in return for a commission payment on any sales they arrange. They also tend to net better sales results than an in-house sales force might. protecting agents in that country are âmandatory rulesâ and supersede the choice of law in an agreement. Rights and obligations of agents vs distributors. As he does not take ownership of the goods, the agent does not take on responsibility. The Distributor (or The Re-Seller) 1. In this blog weâv e outlined the legal distinctions between, and commercial benefits and drawbacks of appointing agents or distributors to help you ⦠However, it ultimately comes down to deciding between using a distribution channel to market or a sales agent or representative channel to market. An Agent does not accept financial liability. Online Tutor Functions Advantages, Disadvantages of Distribution Channel : We have the best tutors in math in the industry. Disadvantages It Costs Money. Advantages of agents and brokers. The obvious disadvantage is that it costs your business more money to hire a marketing agency than if you did things on ⦠Intermediaries act as middlemen between different members of the distribution chain, buying from one party and selling to another. An agentâs rights will vary depending on the agreement, but will generally include a right to be paid for providing agentâs services and a right to be insured in respect of any action taken on behalf of the supplier. 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