How to generate more revenue from your European distribution channels

Expanding into the European market through distribution channels can be a powerful growth strategy. However, if your European distributors have not been performing as expected, or if you are struggling to drive sales with your channel partners, it is time to reassess and optimize your approach.

At Exportia LAB, we have worked with numerous mature businesses from the US and APAC that, despite having an established European network, found themselves needing to restructure and revitalize their distributor relationships. One of the most common reasons for stagnation is that distributors have been left to operate on their own for too long, without sufficient support.

This article explores how to get back on track with your European distributors and how to effectively activate and manage your distribution network to maximize revenue.

Why Do European Distributors Underperform?

Many businesses assume that once a distribution agreement is signed, the distributor will automatically drive sales. However, this passive approach often leads to underperformance.

Common reasons for distributor stagnation:

Lack of ongoing support and engagement from the manufacturer.
Conflicting priorities within the distributor’s portfolio.
Limited sales and marketing resources to effectively promote your product.
Poor communication and strategic alignment, leading to lower motivation.

To maximize revenue from your European distribution network, companies need a proactive approach that involves distributor activation strategies and ongoing management.

Part 1: Activating Your European Distributors

The activation phase is essential for ensuring that your distributors are well-equipped and motivated to sell your products. This includes training, providing sales tools, lead generation, and continuous engagement.

1. Provide Comprehensive Distributor Training

Your distributors need both product and sales training to effectively market your solutions.

Product Training:

Ensure sales representatives understand product features, benefits, and competitive advantages.
Conduct training in their local language whenever possible to maximize comprehension.
Provide accessible learning materials such as videos, brochures, and case studies.

Sales Training:

Train distributor representatives on how to sell your product.
Show them how to identify the right customers and position your product’s value.
Use practical sales techniques and real-life scenarios.

Distributors are more likely to prioritize selling your products if they feel confident about their knowledge and ability to close deals.

2. Identify and Support Your Champions

Within each distributor’s sales team, find your champion—the most engaged and proactive sales representative who will take the lead in selling your product.

Look for the representative who asks the most questions and actively participates in training.
Champions influence their colleagues and drive internal momentum.
Provide them with additional support, exclusive product insights, and incentives.

3. Equip Distributors with Effective Sales Tools

Without the right tools, distributors may struggle to sell your products. Provide them with a sales kit that includes:

Brochures and marketing collateral in the local language.
Product samples or demo kits.
Sales presentations and case studies demonstrating product benefits.
Video demonstrations that can be shared with customers.

Localization is key. European customers are more likely to engage if the sales material is presented in their native language.

4. Generate Leads for Your Distributors

Distributors are more engaged when they see real demand for your product. To help them build momentum:

Run targeted marketing campaigns in key European regions.
Participate in trade shows and exhibitions alongside your distributors.
Leverage digital marketing strategies to drive inbound inquiries.

By providing qualified leads, you demonstrate the demand for your product, encouraging distributors to invest more effort into selling it.

5. Consider Hiring Sales Agents

A local sales agent can be a valuable asset in supporting your distributors, particularly in technical or B2B industries.

Sales agents provide on-the-ground support by working directly with distributors.
They strengthen brand presence and ensure consistent follow-ups with distributor sales teams.
In countries such as France, Italy, and Spain, sales agents are commonly used and paid on commission.

Sales agents serve as an additional layer of support, reinforcing your distributor relationships and driving sales.

Part 2: Managing Your Distribution Network for Growth

Once your distribution network is activated, continuous management is essential for sustaining and increasing revenue.

6. Align with Distributor Priorities

Every year, distributors set their strategic goals. Your goal is to ensure your product remains a priority.

Understand the distributor’s sales objectives and focus areas.
Align your marketing and sales initiatives with their roadmap.
Stay engaged in their decision-making process to maintain visibility.

7. Establish Clear Annual Sales and Marketing Goals

To keep distributors accountable, define a structured yearly plan that includes:

Sales targets (e.g., €500,000 in new revenue).
Marketing budget allocation for joint campaigns.
Incentives for exceeding sales goals.
Performance KPIs, such as:
- Acquiring new customer accounts.
- Expanding into new industry segments.
- Participation in key industry events.

Distributors will prioritize your product if they see a structured plan that includes clear goals and incentives.

8. Conduct Quarterly Performance Reviews

To track progress and maintain accountability, schedule formal check-ins every three months. These reviews should assess:

Sales performance against targets.
Progress on marketing initiatives and lead generation.
Potential roadblocks preventing success.

Regular reviews keep distributors focused and help maintain a steady sales pipeline.

9. Conduct an Annual Distributor Evaluation

At the end of each year, reassess distributor performance:

Did they meet sales goals?
Are they engaging with the right customers?
Should they receive additional support or new sales incentives?
Do pricing structures or discount levels need adjustment?

If a distributor is consistently underperforming, it may be time to phase them out or seek new partners.

10. Expand or Restructure Your Distribution Network

Finally, evaluate whether your current network effectively covers the European market.

Should you add a distributor in an underperforming region?
Should you replace an underperforming distributor?
Is it time to adjust your European market strategy?

Strategic expansion ensures that your business remains competitive and maximizes its revenue potential.

Conclusion: Strengthen Your European Distribution Network

A well-managed European distribution network can significantly accelerate sales and market reach. However, success requires continuous engagement and structured management.

Action Steps:

Assess your current distribution strategy and identify performance gaps.
Implement distributor training, sales tools, and lead generation improvements.
Align with distributor priorities and establish clear goals.
Conduct quarterly and annual reviews to track performance.
Evaluate whether you should expand or restructure your network.

By optimizing distributor activation and management, your business can increase revenue and build a stronger foothold in the European market.

Need Expert Guidance?

If you are looking to strengthen your European distribution network, Exportia can provide strategic insights and hands-on support. Contact us today at Exportia to take your distribution strategy to the next level.