Operation Models of Distributors/Agents

An Expert's View about Business Administration in China

Last updated: 22 Feb 2011

5-2 Operation Models of Distributors/Agents


There are mainly three distribution models based on the distributor's coverage.
1. Multi-Layer Regional Agent

Under this model, the market is divided into several major regions, with a sole agent established in each region. The agents can be divided into several classes, and the regional sole agent may develop its secondary agents or distributors. The biggest advantage of this traditional distribution model is that a sizeable sales network can be formed in a short time with relatively low costs. The sales network can also be expanded quickly building up the product brand.

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Posted: 21 February 2011, last updated 22 February 2011

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