Differences:
1. Their profit models are different. Agents provide services to product companies and then collect commissions from the companies. Distributors do not, they make profits. What is charged is the price difference of the product, that is, the company sells the product to the distributor, and then the distributor sells it to the customer and collects the price difference.
2. In addition, the risk of agents is not high. Agents only provide certain services, so there is no risk. However, distributors will have certain product risks.
3. Another thing is that the agent does not own the product, but the distributor owns the product because the distributor purchased the product from the original manufacturer.
4. Finally, under normal circumstances, the relationship between distributors and manufacturers is long-term cooperation, the relationship is relatively stable, and online sales and offline sales are basically perfected. However, agents are not.
Management
1. Establish a comprehensive communication system platform between the headquarters, dealers and franchise stores to maintain timely contact between the two and facilitate business exchanges between the two parties. For example, Renxin Bank's internal Tiantong system can release product and business information in a timely and accurate manner and share it with 500,000 agents in a timely manner.
2. The company headquarters must maintain its strong position and cannot allow the dealers and franchise stores below to easily break away or set up their own businesses. Always establish that the company headquarters is the legal owner of the business model, and all brand intellectual property rights, such as trademarks, patents, packaging designs, etc., belong to the company headquarters.
3. Distributors and franchise stores sign a responsibility letter with the headquarters to stipulate the responsibilities and obligations between them, and both parties shall exercise their responsibilities and obligations in accordance with the regulations.
4. Dealers and franchise stores must act in accordance with the rules and regulations of the headquarters and cannot have their own set of rules and regulations. The headquarters should communicate with it in a timely manner so that dealers and franchise stores maintain the same service standards and price system as the headquarters.
5. Dealers and franchise stores are required to have consistent decoration and uniform signs inside and outside the store, and random replacement is not allowed.