Business model of agents

The business model of the agent is as follows:

1, manufacturer → general agent → distributor → consumer

2. Manufacturer → General Agent → Primary Agent → Distributor → Consumer

3. Manufacturer → General Agent → Primary Agent → Secondary Agent → …→ Distributor → Secondary Distributor → Consumer.

It is a kind of business behavior that the agent manages the business on behalf of the enterprise, and it is the commission amount that the manufacturer gives to the merchant. The ownership of the goods represented belongs to the manufacturer, not to the merchant. Because merchants do not sell their own products, but sell them on behalf of enterprises.

Agents earn commissions from enterprises. Agents are mainly divided into general agents, regional and sub-brand agents, and provincial branches established by general agents themselves.

The extended data agent is not necessarily an independent organization; Do not own the ownership of the goods (products/services of the agent manufacturer); ? Earn commission (commission); Business activities are guided and restricted by suppliers; The power supply is more powerful.

The establishment of agents can share the risks of manufacturers, so that manufacturers and agents can jointly drive the market, thus reducing the operational risks of manufacturers. At the agent level, in addition to setting up a general agent, agents can also set up a first-class agent or regional agent according to the channel model of manufacturers, and cooperate with terminal sellers at the same time.

Agents have changed from simple distribution to channel maintainers with management functions. In addition to business management, agents also have many functions such as brand management, promotion management, service docking and financial management.

The agency system and distribution system can also penetrate each other, and the main difference between various sales channels lies in the increase of the level of agents or distributors. Manufacturers' management of agents and distributors mainly focuses on the management of prices and sources of goods, and also provides some personnel training and advertising support.

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