3 distribution business ideas

Today, I would like to share my 3 thoughts on distribution business ideas. I have been working for a distribution company that specialises in living and kitchen items for the retail market.?

The company has been in various experiments to branch out to other industries like cosmetics or food. I have been working as a business development and sourcing manager for the company's new effort.

During the last three years, I have been involved in projects not only for sourcing branded products, but also for developing new products. While going through these experiences, I have gathered some thoughts on the distribution industry which I want to share today.

Now, I would like to share those thoughts for you so that you would get inspiration to think about how to structure your work in the industry. Without further ado, let's get started.?

1. Product distribution?

Product distribution is the most common type of business in the distribution and wholesale sector. You may deal with either physical or non-physical products that you sell to your clients.

As a distributor or reseller, you would work as a middleman between the manufacturer and the end consumer. You may also deal with other retail outlets that would deal with end consumers, depending on your business model.?

If you choose to distribute a product, you need to know well about what this product is about to convince others to buy it. Exceptional sales skills are necessary if you want to succeed in this business.?

You need to sell yourself to the manufacturer so that they would give you the right to sell their products. If you can't sell yourself to others, it might not make sense to sell others' products to total strangers.?

So, you need to be bold in meeting people, identifying their pain points, and present your product as a solution for their pain. You need to have a grit to reach out to your target customer until they meet you if you are dealing with big clients.??

You also need to have a clear thought on how you would like to generate a long-lasting revenue stream. Without a careful thought on how you would build your business, your distribution business won't last long.?

So, with careful planning and good sales skill, you can build up your business by distributing products. I have been working in this area for the last three years, and it seems there are still tons of things to learn.?

2. Contents distribution?

Distribution of contents is something that I have been thinking about as a business model. It is to distribute knowledge on certain topics that people have enough interest to buy.?

Opening up an online course is one example for the contents distribution. You create your knowledge in the form of online lectures and sell these lectures to your audience in exchange for money.

For this, you need to have credibility with your audience that they would consider you as an expert in a certain field. Unless you give out your contents and knowledge first as free, it might be difficult to sell your knowledge-based products.?

Freemium model is something that many people use to distribute their knowledge in exchange for money. They would post their blogs or free YouTube videos discussing some of the knowledge and experience they have.?

While doing so, they would build up their audience base who would listen to what they say. If there are enough people to listen, these content creators would issue prompts or ads that there are premium paid contents available.?

If some of these audiences want to subscribe, they would buy these premium contents by paying some hefty sum of money on their website. Since these contents don't have much overhead cost to distribute, you would have a lot of margin when you sell these contents.?

You may also have to find a good platform where your lectures or knowledge contents could have good exposure. There are some specialised platforms for such lectures where you can upload your product for sales.?

These platforms would be your retailers where customers would buy your contents. So, you can choose to enter into these retail platforms first or you may cultivate your audience first and sell your product from your website.?

3. Money distribution?

I thought about the third category when I thought about the role of finance in the economy. The financiers are ones who move money from one place to those who need money for some reason.

A company may need to borrow money to expand its business at a rapid pace, and the company boss may visit the bank for financing. An individual may need to start a business, and he may go to the bank to borrow the seed capital.?

Or there might be investors who may invest their money in some young entrepreneurs for a new venture. These activities are about moving money to and fro within an economy.?

I thought these financiers are money distributors who move money to those who need money. They assess whether the recipient of their money would be worthy for their financing, and if they don't think it is worth it, the money won't go to them.?

Banks and investors are the main distributor of money since they have a huge sum of capital sitting behind their back. They themselves got investment from others to gather enough capital to make profitable investments.?

So, these money movers are also a part of the distribution business. The only difference is that they move money itself rather than other products or services to generate revenue for themselves.?

4. Wrap-up?

Now, I hope you may have a broadened understanding on what a distribution is. You might have thought of distribution as something for products, but knowledge or money could also be a part of it.?

Such a variety would make the distribution business more interesting than it seems to be. I would learn more about the distribution business to generate more informative content for you.

If you liked today's article, please put your thumb up and share it with others who may also enjoy it. Thank you, and I will see you in my next article.