Pick partners, distributors, or direct

Who this is for

Founder led lower-middle market companies with 5 to 50 million in annual revenue that want the right entry model by market.

The quick answer

Use partners when they already reach your buyer and can deliver service to your standard. Use distributors when logistics and compliance are complex and speed matters. Use a direct team when control of pricing, service, and brand is critical. Start with a partner led entry and shift to hybrid or direct once demand is proven.

The method in seven steps

Score the control need
Rate how important strict pricing, brand, and service control are in this market. Higher control needs push toward direct.
Assess partner reach and quality
List potential partners and distributors. Score their access to your buyer, technical ability, service track record, and cultural fit.
Map cost to serve
Compare total landed cost, service response needs, travel time, and required inventory.
Choose the starting model
Partner led when you need speed and market learning. Distributor when logistics and compliance are heavy. Direct when control and complex delivery matter most.
Write the shift triggers
Define what moves you to a hybrid or direct model. Examples include pipeline volume, margin at target, and partner service scores.
Set agreements and enablement
Use clear commercial terms, territory rules, brand use, and service levels. Provide price cards, talk tracks, and a simple escalation path.
Review quarterly
Score the model against pipeline, margin, win rate, and service results. Decide to deepen, shift, or exit.

Example

A company entered a new country through two specialist partners with strict service level agreements. After six months and steady demand, they hired two direct reps and kept partners for fulfilment and service in remote regions.

Pitfalls and fixes

Picking a model without triggers to change. Write the shift rules.
Weak enablement. Provide price cards and playbooks.
Overlapping territories. Draw clear boundaries and review quarterly.

Checklist

Control score and partner list
Total cost to serve view
Starting model and shift triggers
Agreements with service levels
Quarterly review agenda