3) Letting the distributor dictate the terms
One of the more depressing things we’ve experienced (yes, we fell for it too) is when we paid someone to distribute our discounts.
It feels like a double whammy because we’re spending money upfront AND we’re lowering our averages on the backend.
Or, you could do a revenue share on top of your discount. What’s 50% of 50%? Sounds fair, right?
The distributor’s argument is going to be: if you’re paying us to distribute, the best way we can make it worthwhile is to appeal to the broadest population possible.
Translation, remove restrictions and give a big discount. They want it to be easy for themselves. Heaven forbid if they have to go out and target the right people!