Distributors

By Entrepreneur Staff

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Distributors Definition:

Individuals or businesses that purchase the right to sell ABC Corp.'s products but not the right to use ABC's trade name

One of the most common types of business opportunity ventures, a distributor or dealer is an independent agent who's entered into an agreement to offer and sell the product of another company but isn't entitled to use the manufacturer's name as part of its business name. Depending on the agreement, the distributor may be limited to selling only that company's goods or it may have the freedom to market several different product lines or services from various firms.

Here's an example: An authorized dealer of Minolta products might have a Minolta sign in his window, but he can't call his business Minolta. Often, the words "dealers" and "distributors" are used interchangeably, but there is a difference: A distributor may sell to several dealers, while a dealer usually sells directly to retailers or consumers.

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Distributors

Individuals or businesses that purchase the right to sell ABC Corp.'s products but not the right to use ABC's trade name

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A small, enclosed stand from which merchandise is sold, often placed in the common area of a shopping center or public concourse

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The selling of another company's products through a distribution system of racks in a variety of stores that are serviced by the rack jobber

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A business model in which a distributor network is needed to build the business. Usually such businesses are also multilevel marketing in nature in that payouts occur at more than one level.

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