It took a while for me to understand what distrib
Post# of 82690
(Total Views: 541)
Posted On: 05/21/2019 8:27:39 AM
It took a while for me to understand what distribution agreements are and why there's uncertainty about the amount of revenue they will generate and when it will be delivered.
What the company has basically done is to license other companies to sell products, and revenues will be dependent on if and when the other companies make sales.
So, I license to two friends, say, to sell for me, and they license to two more friends, etc. The thing is, though, that the more sales portals or channel partners, or whatever you want to call them ,that are involved, the less my cut becomes, as they each take theirs before it comes to me.
It's not an uncommon sales relationship. The only problem is that I can only raise the prices so much to accommodate the payments to an increasingly large sales force, so my cut has to be decreased, in the end, to make sales and keep everyone happy. In any case, even saying that revenues should increase later this year or in 2020 is a wild guess, there's simply no way to foretell with this business plan.
What the company has basically done is to license other companies to sell products, and revenues will be dependent on if and when the other companies make sales.
So, I license to two friends, say, to sell for me, and they license to two more friends, etc. The thing is, though, that the more sales portals or channel partners, or whatever you want to call them ,that are involved, the less my cut becomes, as they each take theirs before it comes to me.
It's not an uncommon sales relationship. The only problem is that I can only raise the prices so much to accommodate the payments to an increasingly large sales force, so my cut has to be decreased, in the end, to make sales and keep everyone happy. In any case, even saying that revenues should increase later this year or in 2020 is a wild guess, there's simply no way to foretell with this business plan.
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