I believe many readers are no strangers to the concept of human nature, but may have had limited exposure to the idea of 'commercial nature.' For the sake of this discussion, let's consider it a term I've coined, defined as the human nature that distributors exhibit in their business activities. Human actions are governed by thoughts, and thoughts or consciousness, aside from genetic factors, are largely shaped by environmental influences. I have analyzed outstanding marketing professionals and successful businessmen (where success is defined as running a viable, normally operating enterprise) and found that a significant reason for their success lies in their distinct thinking patterns. In marketing, this is called differentiation; in management, it's called control. Only by thinking differently from others can you control them; otherwise, you'll be controlled. Times change, markets change, and human nature evolves, but studying human nature remains the most cost-effective way to solve all business problems. Through years of research on distributors, I've summarized some common traits to share with my peers.
The Smallholder Mentality of Merchants Influenced by thousands of years of traditional feudal culture, Chinese people have a deep-rooted agrarian consciousness, which is essentially self-interested. In business, this manifests as short-sightedness, a desire for quick returns, a fondness for petty gains, and a tendency to hoard anything free. Understanding this overarching premise is crucial for the daily management of distributors. Colleagues often complain about why clients constantly demand policies and support; here lies a fundamental answer. It stems from the agrarian nature of merchants.
Everyone Likes Petty Gains, and the Wealthier, the More So In business activities, people have three desires: to possess what others don't have, to possess what others have but they lack, and to possess something better than others. These three desires drive distributors to constantly demand support, policies, and expenses from manufacturers' leaders and sales staff. In Taiwan, a credit card company, in collaboration with a large shopping mall, organized an exclusive party for top-tier credit card holders. The marketing design included drinking alcohol upon entry (to cloud judgment), followed by dessert, and then an activity where the person with the highest spending would receive a Patek Philippe watch worth 60,000 RMB. One might assume these wealthy, prestigious individuals wouldn't care about such a watch, but they did. The event was chaotic, with attendees competing in spending; the top spender spent over 4 million NT dollars and proudly displayed the watch on stage. The event generated 300 million NT dollars in sales.
The Core of Managing Distributors Is Mental Control How to achieve control? Many friends have racked their brains over this age-old problem. I believe the first issue is mindset. Distributors and manufacturers are not inherently aligned in interests; often, it's a struggle for interests and status. Thus, the idea of truly controlling distributors is naive. The ideal state of having clients both pay and obey is unrealistic. We can only guide, communicate, and resonate on a mental level. Therefore, analyzing the current psychology of distributors is crucial. Successful people are confident; failures are insecure. Many distributors are currently in a state of success, but the increasingly complex and competitive market environment brings immense pressure. Many management issues exceed their current capabilities. They created yesterday's glory, but with a misstep, they might create tomorrow's bankruptcy. Hence, distributors are a mix of confidence and insecurity, making them particularly sensitive. There are three key sensitive points: First, the moment of great success, such as when a distributor just receives 10 million in revenue. At this point, proposing new business is likely to succeed because the distributor assumes the new project will also bring huge profits. Second, when our client is down on their luck, especially those with potential—meaning their current struggles are not due to personal vices (like gambling) but due to upstream manufacturers or other reasons. We can support them; this is a sensitive point for control and the best time to cultivate loyalty. Think about it: when you're at your lowest, starving, and someone offers you 2 million with certain conditions, you'd likely agree. Third, when a good trust relationship has been established, such as a long and successful cooperation. Wouldn't it be easier to introduce new projects to such clients?
Free Things Are Not Valued by Distributors We should artificially create barriers. This isn't just about commercial nature; it's a common human weakness. In distributors' eyes, only what they've paid for is valued; free offerings are not cherished. For example, many companies hold annual distributor conferences with free training sessions. A common sight is the trainer passionately speaking on stage while distributors below are snoring. The only solution is to learn from the Jews: artificially create scarcity and make distributors pay. As for how to charge, I'll discuss that in a separate article.
Reflecting on years of interactions with clients, it feels like a game of cat and mouse, with my role constantly shifting between the two. Many masters have written extensively on distributor management, and I don't deny that some books offer profound insights. But how many distributors have read these books, and how many are willing to? Through my communications with many distributors, I've learned that they read books seeking solutions. If they must finish a whole book to understand, they rarely have the patience. History proves that concentrated wisdom is the essence; often, simplicity is most effective.
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