Revenue Rocket – Strategic Mini-Course: Choosing the Right Distributors
1. Define Your Business Goals
Every distribution strategy starts with clarity of intent.
Ask yourself:
• Priority objective: customer acquisition, brand awareness, repeat purchase, seasonal performance?
• Target audiences: B2C, B2B, employee benefits (CSE), niche verticals?
• Desired control level: selective distribution or wide rollout?
• Brand image impact: what’s at stake?
These answers will shape your channel mix, commission policy, and presence rules.
2. Anticipate Risks & Opportunities
• Dependency: Don’t rely on just one or two distributors.
• Cannibalization: Too many channels can hurt internal performance.
• Brand equity: Don’t compromise your positioning.
• Gray market reselling: Include anti-redistribution clauses.
• Tech & security: You’ll need a robust infrastructure for tracking, fraud prevention, and partner management.
3. Choose the Right Distribution Strategy
There’s no one-size-fits-all—but there is an optimal alignment for your goals.
🔓 Open Strategy
• Goal: Maximum reach
• 👍 Visibility, high volumes, mass market exposure
• ⚠️ Brand dilution, complexity, cannibalization risks
⚖️ Selective Hybrid
• Goal: ROI & control
• 👍 Profitability, strong brand alignment, efficient partnerships
• ⚠️ Requires active KPI monitoring and partner vetting
🛒 Mass Retail
• Goal: B2C penetration
• 👍 Convenience, impulse purchase, brand awareness
• ⚠️ Limited customer data, thin margins, risk of commoditization
💎 Premium Controlled
• Goal: Brand protection
• 👍 Prestige, exclusivity, deeper loyalty
• ⚠️ Narrow reach, high partner dependency
🧩 B2B-Specific
• Goal: Employee/CSE volume
• 👍 Scalable, low complexity, preserves direct B2C channels
• ⚠️ Limited brand visibility, strict governance required
4. Build Your Commission Framework
A flawed commission model = blocked growth.
Balance margin with attractiveness.
- Benchmark your industry’s commission standards
- Know your true margin structure
- Align with your objectives:
• Awareness = higher commissions
• Profitability = tighter model
- Factor in total customer acquisition cost
3 Commission Models:
• Flat-rate: Simple, but lacks flexibility
• Performance-based: The more they sell, the more they earn
• Tiered: Adapted by partner type or potential
Think beyond reach—optimize for ROI, margins, and channel efficiency.
5.Map the Right Ressellers
🛍️ Physical Distributors (Offline)
- POSA (Point of Sale Activation)or Retail Gift Card
➡️ Physical cards sold in-store, activated at checkout
🟢 Great for mass retail visibility
- Pin-on-Receipt (PoR)
➡️ Gift code printed on receipt, no physical card
🟢 Ideal for low-logistics convenience stores
💻 Digital Distributors (Online)
- Marketplaces / E-tailers
➡️ Open platforms to purchase gift cards online
🟢 Maximize reach and conversion
- Multi-branded card conversion
➡️ Convert a multi-brand card into your brand’s card
🟢 Attract new customers effortlessly
- Crypto platforms
➡️ Gift card purchases via cryptocurrency
🟢 Reach tech-savvy, global audiences
- Consumer promotions
➡️ Use gift cards as incentives in partner campaigns
🟢 Boost visibility and brand recall
💻 Online Platforms – B2B / CSE Specific
- Employee Incentive - Non-Company funded
➡️ HR-curated platforms offering discounted gift cards to employees
🟢 Drive recurring volume within a closed ecosystem
- Employee Incentive - Company funded
➡️ Gift cards used to reward performance or engagement
🟢 High-value exposure through HR-driven recognition
💎 Loyalty Programs
- Loyalty Program - Company funded
➡️ Gift cards rewarded via points or miles
🟢 Position your brand as a premium experience
- Loyalty Program - Non-Company funded
➡️ Cards purchased with partial contribution from customers
🟢 Access a qualified, engaged audience
Multiple
➡️ Gift cards offered across closed channels (loyalty, incentives, benefits)
🟢 Optimize revenue by diversifying access points
🔑 Pro tip: Complementarity is key—adapt your offer and messaging to each platform.
6.Choose the Right Partners
- Brand and values alignment
- Audience reach and targeting
- Physical vs digital capabilities
- Marketing strength (promotions, co-branded campaigns)
