Guide to Expanding Distribution Channels

Retail

Take advantage of the marketing and advertising power of existing retailers by placing your product with them. Depending on your product, the best option for this type of distribution channel may be specialty stores or department stores.

I recommend: Add your product to IndieRetailer.com's search engine, which is targeted to independent retailers. Generate interest in your product by taking it on the road. Search for trade shows in your industry or product category at TSNN.com. Outsource your product marketing to Phase Forward, a firm that specializes in launching products into the retail channel.

Wholesale

If you manufacture your own products, wholesalers may be an ideal choice to broaden your product base. The advantages of this distribution method are many: wholesalers buy in bulk, which increases your bottom line and reduces your storage needs, and they often have transportation networks in place which alleviates you of the cost and hassles of moving your products.

I recommend: Find a wholesaler in your industry at the National Association of Wholesaler-Distributors.

Sales reps

Consider hiring sales reps to widen your reach. By choosing reps who work independently, you can avoid the costs associated with opening additional offices in targeted areas.

I recommend: Hire independent sales reps by consulting the Manufacturers' Agents National Association (MANA), which has an online directory of its members.

Direct marketing

This can open up your products and services to a local, regional, national or even global audience. Sending out flyers, brochures or postcards are common tools used to open up direct mail channels. Or you can try to get your product placed in a big-name catalog.

I recommend: See a sample listing from Catalog Surf's searchable database of more than 11,000 catalogs, complete with buyer names, contact information and submission guidelines. Download templates for flyers and brochures at Microsoft.com.

Telemarketing

Opening up a telemarketing distribution channel can give you access to consumers nationwide without having the expense of opening retail locations. Telemarketing does require trained staff, however, which can raise costs.

I recommend: Contactual offers an on-demand call center program that minimizes the costs of setting up a telemarketing call center.

Internet

E-commerce is growing all the time. Look at selling through well-known marketplaces and up-and-coming comparison shopping sites.

I recommend: You probably already know about eBay, Amazon and Overstock. Also consider comparison shopping sites Froogle, Yahoo! Shopping, Shopzilla and Shopping.

International

International markets can offer higher profit margins and big growth. However, international markets can come with significant cultural barriers and bureaucratic hassles.

I recommend: Find a list of trade events where you can find international partners at Export.gov.