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~Tori

We have been very fortunate in that our distributors have come to us. I have never sought out a specific distributor overseas. Without having the benefit of knowing which industry you're in, I can't make any specific recommendations. But I can tell you that each industry tends to have it's own subset of tradeshows which are heavily geared towards international distribution. For you cosmetic folks, look at Cosmoprof Vegas- as it's usually packed with int'l distributors looking for new lines to pick up. I do understand that trade shows can be a significant investment, especially for new companies just getting their legs beneath them. One no-cost way to get distributors is to advertise via your website that you're looking for them. Ideally, dedicate a page of your site to distribution and focus on the SEO (search engine optimization) of that particular page. Explain what areas you are interested in and provide several means of contact. You might be surprised at how quickly interested parties pick up on your query and contact you.

In reference to your second question, I do not offer a commission to distributors based on sales. In most industries (cosmetics inclusive), distributors buy your product outright, stock it within their country and develop sales leads within their specified region. They are then responsible for securing those sales, delivery of the product locally and supporting those accounts. So how do they make money? Companies such as mine sell to them at what's known as "export pricing", or a special price below wholesale that allows to them resell to local wholesalers at a profit. Export pricing varies by industry, but you can expect to have to discount anywhere from 15-50% BELOW WHOLESALE. While that may seem overly generous, it's important to keep in mind that these import companies bear significant costs to bring your product into their country. Shipping internationally is ridiculously expensive, plus there are a host of import taxes and fees that are the responsibility of the exporter themselves. Add in their warehouse and staffing expenses and it's easy to see why a significant discount is necessary. It's a careful balance to ensure that you're still making money at the end of the day, as are your distributors and the accounts they eventually wholesale to. But- done right- can be a very lucrative affair for all involved.