---
title: "New Product Distribution Combat - The \"Leverage\" Principle: Get the Right People and Split the Money Well!"
description: "Scan the QR code in the image to register. New product distribution requires speed, like a sudden spring breeze bringing thousands of pear blossoms. The author shares practical experience from assisting a first-tier brand, emphasizing the importance of selecting strong distributors and leveraging their resources, while ensuring fair compensation to achieve rapid market coverage."
author: "高级研究员 海游"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2021-03-11"
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# New Product Distribution Combat - The "Leverage" Principle: Get the Right People and Split the Money Well!

> Scan the QR code in the image to register. New product distribution requires speed, like a sudden spring breeze bringing thousands of pear blossoms. The author shares practical experience from assisting a first-tier brand, emphasizing the importance of selecting strong distributors and leveraging their resources, while ensuring fair compensation to achieve rapid market coverage.

**Scan the QR code in the image to register**
New product distribution is all about: **"Like a sudden spring breeze overnight, thousands of pear trees bloom."**
Speed is the first priority, conveying surprise and curiosity to consumers in the shortest possible time.
Recently, I assisted a first-tier brand in new product expansion. From the first day of distribution, we clearly stipulated:
**In the first month, no fewer than 8 stores per day must be stocked, requiring cash on delivery, mandatory SKUs for store entry, and terminal visualization according to display targets.**
**At that time, the entire team was under considerable pressure.**
It seemed like an impossible task, but in reality, the execution team met all targets and completed the indicators on time and with quality. Today, I will share my experience with you.
First, we need to change a mindset: **The FMCG industry is still chaotic today; almost no distributor or terminal store that has been in business for over 3 years has not been "deceived" by "unscrupulous" brands.**
For example, before distribution, they promise display fees will be paid at a certain time, salespeople will visit once a week, and old inventory will be covered by after-sales, but in reality, many promises are hard to keep. New product distributors and terminal stores severely lack trust.
In fact, terminal store owners don't need profit promises because the difference between purchase and selling price easily determines product profit. Stores with years of experience also know the retail prices and profit margins of similar products. What they need is a guarantee in an era of thin margins.
The logic is simple: in a thin-margin era, products cannot afford mistakes. One expired case means ten or more cases "sold for nothing."
To protect their own interests, terminal stores demand credit sales for new products, mainly in the form of: **paying after selling or pressuring the first order.**
**This puts pressure on distributors' capital and product attention, and is the main reason for new product failure. This is the difficulty of the entire game.**
To solve this difficulty, you need to learn to **"use leverage."** Let's start with recruiting distributors for new products.
******-01-****New product recruitment should target distributors with "leverage"**
The recruitment team also faces two games during the process:
One: Strong comprehensive trading companies have long negotiation times, requiring deep understanding of the product and the brand's overall strength, but once developed, subsequent market promotion is easier.
Weak comprehensive distributors have short negotiation times, don't need deep understanding, but once developed, subsequent market promotion is much harder.
Another: Companies have assessments for the recruitment team. Balancing assessment and progress truly reflects the recruitment leader's comprehensive ability.
So what are the considerations for recruiting target distributors?
**1\. Distributors must meet the following conditions:**
a. Business scale: The per capita annual consumption of all products represented by the target distributor in the regional market should be over 20 yuan. **A distributor's business must be "big and strong," meaning those who haven't grown big won't be very strong.**
b. Be a top distributor in the region's category. For example, if the product is a beverage, your target distributor should be among the top 3 beverage distributors in the region.
c. The comprehensive network coverage rate of the products they handle should be at least 80%. This goes without saying.
**2\. Understand the distributor's current situation:**
a. Understand which of their products are distributed or delivered.
b. Judge the distributor's network control capability and competitive advantages/disadvantages against competitors through display performance.
c. Communicate deeply with the distributor to understand their business bottlenecks and willingness to break through them.
d. Understand market reputation (customer relations, delivery timeliness, after-sales support).
e. Number of product network points / number of sample network points visited ≥ 80% (based on 100 sample points).
f. Understand warehouse management and logistics personnel status.
**3\. Communication tactics and principles with regional big distributors: meet their existing needs—empowerment**
You can start from these aspects:
a. Improve the distributor's operational capability by changing existing models.
b. Enhance the target distributor's digital operation capability through digital transformation thinking, including digital demand forecasting, digital display breakdown, digital sales tracking, and consumer communication.
c. Increase the distributor's profitability by improving marginal benefits through your product, such as less capital occupation and better warehouse utilization.
d. Build a future business model portrait for the distributor through your product and company strength, including:
**Employee portrait: from employee management to employee consultation to partnership model; Business portrait: channel expansion + channel profit enhancement; Product portrait: off-season and peak-season complementarity, etc.**
******-02-****Specific process of "leveraging" distributors for distribution**
After selecting a distributor with leverage, the next step is implementation, which can be broken down into five actions.
**1\. Deep communication with the distributor**
Understand the details of their business model and discuss assistance matters. For example, which area is their model area with good customer relations and sales? We start there. Which stores are their fortress customers? We start with those. From easy to difficult, from simple to complex.
**2\. Find resources that can be leveraged**
Regional big distributors have three business models (how products reach terminal stores):
**First: All direct operation or direct delivery within the region (brand takes orders, distributor delivers);**
**Second: Distributor has sub-distributors; distributor only delivers to sub-distributors, and terminals are delivered by sub-distributors;**
**Third: Mixed model, some terminals are direct operation or direct delivery, some are delivered by sub-distributors.**
Therefore, there are three types of resources to leverage:
a. Salespeople of strong brands: mainly brand salespeople assigned to distributors or their sub-distributors to serve terminals.
b. Distributor's own high-performing salespeople: these are the distributor's own team, managed solely by the distributor.
c. Drivers with good terminal customer relations: distributor drivers usually serve a fixed area for a long time, handling delivery and payment collection, especially in areas with high salesperson turnover, they have excellent terminal relationships.
The specific communication and execution method: Brand grassroots managers first connect with the distributor owner → Distributor owner introduces strong brand grassroots managers → Strong brand grassroots managers recommend strong brand salespeople → Brand grassroots managers and their subordinates follow strong brand salespeople for distribution.
It must be emphasized that regardless of the leverage, pay attention to the concept of "management level": **Do not skip levels to directly contact grassroots operations, otherwise it will cause internal discord among the leverage targets and eventually lead to a complete breakdown.**
**3\. Negotiate the leverage**
a. Determine if the "leverage target" is capable:
Not all strong brand salespeople or distributor salespeople are suitable. You need to communicate to understand their business ability, customer relations, service time, communication skills, terminal store control ability, etc. The more conditions they meet, the more qualified they are.
For strong brand salespeople, the first step is to visit stores where they invest fees. These stores have two advantages: **1. Stores with fee investment have high sales and traffic; 2. Stores with fee investment have good customer relations.**
Specific operation suggestion: **Get the list of strong brand fee-invested stores, divide by area, and follow up gradually.**
b. Split the money well: **There is no love without reason, nor hate without reason.** Grassroots workers have no obligation to help your product enter stores. On one hand, the labor-intensive nature of FMCG means their schedules are full and time is tight; they don't want to work overtime for you. On the other hand, it's not their job; they can refuse. **No one has a good reason to work for free.**
So splitting the money well is reasonable.
There are two ways to split money:
**One: Terminal store entry channel policy**
For example, for new product distribution, brands often support a strong first-store policy, like a comprehensive entry fee rate of 35%. If a strong brand salesperson can secure the store with 25% without losing quality, the extra 10% can be given as a reward.
**Two: New store entry reward**
For example, brands support incentives for opening new stores, like 30 yuan per store if standards are met. You can share half of that with the strong brand leverage person.
In short, understand the principle: "Money scattered, people gather, things are easy; money gathered, people scatter, things are hard." If some grassroots workers are unwilling to share, explain the logic, including:
**The goals and speed of new store openings, the impact on their income if not met, the long-term income impact of developing stores, starting with the end in mind, and goal-oriented guidance.**
**4\. Specific execution process**
a. Schedule the days and which "leverage target" to follow for distribution in which area.
b. Leverage arrangements should prioritize the leverage person's schedule, not delay their time, and not add burden.
c. First introduce yourself to build customer relations, then focus on product orders. After following the leverage person for visits, handle product pricing and system operations.
**5\. Settlement of leverage fees**
a. Settle the number of stores entered and transaction amounts by the leverage person.
b. Calculate the leverage fee to be paid and thank the person for their support.
c. It's best to settle fees daily, so people will compete to help you, and some may even open stores for you first.
**Final Thoughts:**
**New product recruitment and distribution are often done in one go. The primary and most important thing is to dispel terminal stores' concerns, which requires trust endorsement. So for speed, first choose a distributor with good market reputation and strong comprehensive strength. Wrong choice means wasted effort.**
Second, there's no free lunch. Split the money well, set clear rules, and pay promptly. Finally, streamline the process. Even if you pay, it doesn't mean the leverage person must obey you. Always maintain an attitude of asking for help.


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Contact: zhaobo258@gmail.com · +86 158 5481 7671