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August 28, 2007 06:43 PM

Categories: Sales and Distribution

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WebNibbler

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Joined: 08/28/2007

We're a leading software/internet company in Asia Pacific region. I'd be much appreciate if anyone can assist me for finding software distributors here in US? I'm currently in Silicon Valley now and maybe I should start looking for distributors here in the Bay area. Thanks.

Discussion:    Add a Comment | Comments 1-8 of 8 | Latest Comment

August 28, 2007 7:09 PM

WebNibbler ... unless you spell out what kind of distributor you are looking for, and what software products you are selling, you channel model, vertical focus, B2B or B2C (retail) I don't think you'll get far. You need to be much more specific.

Its like asking where do I find a good Pizza in the US?

---

Robert Dubicki

August 29, 2007 2:12 AM

Thank you, dubicki! This is a very valuable piece of professional advice. We're a leading software solution/service provider in web analytics with a proprietary technology. And we'd like to develop our business here in US with on-demand service. We have retail programs for hosting companies (i.e., dedicated and share-hosting). In Asia, we usually look for traditional SI (System intergrations) companies as our potential distributors. But I dont' know if this would be the ideal case here in US. I've been making cold-callings to the prospects (i.e, hosting companies) i found from the internet, but the ROI is unbelievable low. Rejection has been so common indeed. To sum up:

Sofeware: Web analytics on-demand service
Kind of distributors: SI, software vendors (VARs)?
Vertical focus: B2B.

I'd be much appreciate if you can give me more advice on develop business in US. We had attended ISPCON and HostingCON this year but found the later one is more useful (in terms of hosting companies name cards generation). Is there any software exhibitons in US that most software distributors would attend? The ones that we can target on? Again, million thanks!!

August 29, 2007 2:18 AM

By the way, since I'm still in the SF Bay Area so that it would be my top priority if I can generate contact info for the software distributors here in the area so that I can try to arrange a company visit and make presentation. Any suggestion on ways of finding suitable distributors in the area would be also much appreciated.

August 29, 2007 9:42 AM

My *guess* is that it will be hard to set up "drop in" meetings. I *suspect* most distributors operate on more of a Web/e-mail/telephone model. You could try Googling appropriate key words along with California, "Silicon Valley," "San Francisco," SF, and/or "Bay Area." Then get on the telephone and see what you can do.

A *great* find-distributors resource is moderator Gilles Pardon's http://SoftDatabase.com. Yes, it's a paid resource, but you get to try before you buy. Go to the Web site and see how many distributors you can find in the SF Bay Area, and then decide if it would be worth paying to get their contact information.

August 29, 2007 10:21 AM

There are a couple of things I'd probably do before hitting the distributor discovery trail.

First off, I'd look at my competitors to see how they're distributing their product and who they're using. I'd also compare my products' feature set and pricing to theirs to make sure I've established enough key differentiators to rise above the massive and well entrenched crowd of competitors.

Next thing I'd do is a little research to understand the U.S. Channel landscape - some basic differences between Distributors and Resellers for instance. Also the distinction between retailers (online and store front) and resellers (VARs) should be clearly understood so that you can craft your value proposition message to the right audience.

I'd also make sure that every link on my website was live - there's seems to be a problem with that right now?

Charles is right on target with distributor drop-ins. Maybe more importantly, the reseller Channel is all about reach and it sounds that in your mind you have created inherent geographic limitations which might limit your view of the target and partner prospecting hotbeds.

More than likely your product will be delivered via online downloads - that's not typically an incentive for partners unless it's rolled into a broader product/service packaged offering that compliments their expertise and purpose for being in business.

Low price point products, delivered via online downloads and that don't require a certain level of expertise are generally looked at as commodity items and in most cases the resellers/distributors will default to the more tenured and recognized names.

Finally, if you haven't done your homework resellers and distributors will know in your first 3 introductory syllables and either dismiss you or eat you alive.

Thank you for visiting SoftwareCEO and please feel free to return and ask more questions.

Channel Cheers,

Ken Beam, The VAR-City -- "Channel Start-Up Specialists since 1995" Phone: 972.240.8793 or kbeam@thevarcity.com

August 29, 2007 10:33 AM

I'm not sure your product lends itself well to a reseller model.

Your software (web analytics) would have very broad applicability. I imagine, your software is used by internal corporate webmasters or webmasters where website management has been outsourced to hosting or Marcomm companies (becoming very common these days).

However, most B2B VARs are geograhpically bound, and focus on specfic verticals because "services" are not as mobile as product. Just generalizing, that's not always the case. But something to keep in mind.

I imagine, your ideal partner would be someone who currently sells other web development, monitoring and analytic tools. My guess, is that this type of company would be selling all over the US. My guess too, is that these types of products are simply sold over the web directly ...with little to no "face-to-face" (which is why I don't think a product like yours is conducive to a reseller model ... B2B resellers make money from their services not selling product).

I would follow Charles' suggestion: Start with Gilles database.

Next, google (spend a few days at it) finding companies selling similar type of products, ideally complimentatry. Look at how competitor solutions are sold. if they are not selling via resellers ... that tells you something.

Finally, find trade-shows and industry events geared to the webmaster folk, hosting ISP conferences... there are lots of them. This is probably the best way to network and find a potential partner.

I think those probably are the 3 best avenues, but I think its going to be tough. My guess, a direct sales model may work best for your type of software solution.

Not everything lends itself to a reseller sales model, and this may be one of those situations. I see tons of web analytics tools being promoted, but the sales model seems to be mostly direct, and the promotion coming from the web, through portals (sites that discuss, write and review such tools) and direct contact (direct sales calls to hosting companies for example). This is not stuff a reseller wants to "invest" their time doing. They would rather just sit back and take orders, and you do the promotion. Give it a try, but ...just a hunch ... you may find you will probably have to do your own selling and marketing.

Ken is absolutely right. With a low $ product, your product will likely sit on a shelf because a "reseller" tends to be just an order taker. Its up to you to do all the promo. With high $ items, there need to be a lot of "services" that can be wrapped around your product to make it interesting for them put some selling time.

---

Robert Dubicki

August 30, 2007 1:16 AM

Dear dubicki, Ken and Charles:

You guys are such wonderful people to give me these professional advice. I'd keep these points in mind to do BD here in US. Million thanks! :) I hope my boss could realize that the business development in US is more difficult than we first thought of...

May 24, 2012 10:21 AM

We're originally from San Francisco and used a software distribution company in Ohio http://www.softpack.com they're a distributor that work with multiple seller groups, they do B2B and B2C and are preferred distributors for all the major physical and e-retailers (best buy/staples/costco/amazon etc...)

I only have the IT director's contact info here right now, he helped us get automated order processing setup but I'm sure he would be willing to discuss their business with you. If you go to their web page, call their main number and ask for him, his name is Wayne Head. Tell him Steve Dragger sent you.

Hope this helps!

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