When evaluating a potential export representative, consider their experience and knowledge:

• Does the prospective agent or distributorship have the know-how and resources to provide after sales service at the quality level your company expects?
• Who are the principals of the prospective agency or distributorship?
• What is their background and experience in your field?
• Are they active participants in the firm? If not, how important is this to you?
• In some foreign markets the social and business connections of the principals can mean far more to the success of your merchandise than a monthly marketing call.

Are they reliable and able to deliver:

• Examine the prospect's service record.
• Can the prospect deliver the service promised in your existing guarantees and/or warranties?
• Examine the prospect's readiness to serve your needs.

Examine their facilities:

• Does the prospect have warehousing facilities and a good shipping system?
• Does the prospect have modern communications systems?
• How many offices does the prospect have in the territory it would be covering?

Consider their existing customers:

• Examine the prospect's current and past customers.
• Does the prospect represent lines that compete with yours?
• Make certain that your agent or distributor has no conflict of interest in representing you.
• Is the prospective agency or distributorship calling on the type of customer that would be interested in your merchandise (i.e., is its target market the same as yours)?
• What major accounts does the prospect currently hold?
• Examine the merchandise lines the prospect represents.

Evaluate the staff and sales abilities:

• Is the prospective agency or distributorship large enough to service your potential market?
• How many staff members does the prospect have?
• Is the staff that will be handling your business qualified?
• Examine the prospect's readiness to serve your needs. Examine the way the prospect covers its territory.
• Does the prospective agency or distributorship cover a territory directly or does it cover it using regional representatives?
• Is the size of the sales force large enough to serve the number of potential customers?
• Does the geographic distribution of the sales staff make sense? For example, in the United States manufacturers often have several agents across the country on a regional territory basis.

Keeping Your Representative Motivated

It is important that you and your chosen representative have a clear understanding of what each can expect from the other. Appointing an agency or distributorship to represent your merchandise is only the first step in developing a customer base in your target market. A successful long-term business relationship requires that you communicate with your representative frequently.

Agencies or distributorships need to be kept up-to-date on your line. If you can, offer their staff–your sales force–training and/or incentive to become and stay familiar with your merchandise and its applications. Provide prompt and complete responses to any questions your target market sales force has. Think of them as "customers" who must be kept "sold" on your merchandise on a regular basis.

Checklist: What to Expect from an Agent or Distributor

• Thorough knowledge of the local, national markets and any variations.
• Import knowledge of your product type.
• No competitive products.
• Ability to cover territory–urban and/or rural coverage.
• Timely payment as per agreements.
• Adequate warehousing of variable models or stock.
• Sales organization and unrestricted access to sales records.
• Administrative support.
• Ability to prepare marketing plans and sales forecasts.
• Market research and competitive analysis.
• Verify pricing assumptions and calculations.
• Prepare advertising and promotional campaigns.
• Clear understanding of the termination clause in contract.
• Visits to production facilities for product updates.
• Capability to provide accurate verbal and written translations.

Checklist: What Agents Expect from You

• Exclusivity in writing.
• Legal representation for patent and trademark protection.
• Top-quality, trouble-free, warranted goods.
• Commissions payable should be clearly spelled out in writing.
• Shipping services: packaging, labels, documents.
• Prices: lowest possible.
• Payment terms: establish credit rating and patience.
• Advertising and promotional literature and posters.
• New and modified products.
• Training materials: manuals, videos, slides.
• Timely updates, announcements, newsletters.
• Periodic visits from high-level executives.
• Sales conference attendance.
• Rewards and incentives.