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Distribution Decision

In assessing distribution strategies for the company's human resources applications its critical to keep in mind that as a small and relatively unknown software developer, gaining the attention of software distributors is going to be a daunting and potentially very expensive strategy.Keeping in mind that software distributors have literally hundreds if not thousands of software companies approaching them to sell their applications, it's clear that the competition in the software distributor channel is daunting.To get a software distributor to resell the human resources applications, inordinately high gross margins will also have to be offered to compensate for the lack of awareness of the brand.Further, there is no assurance the software distributors will work to understand the specifics of the application itself as well.The bottom line is that relying on software distributors is going to be quite expensive, time-consuming and could easily drain essential resources in the company.Selling over the Internet would allow for global distribution literally overnight and more control of selling and support costs.Most importantly, selling directly over the Internet ensures the positioning and value of the software is communicated correctly.
Conversely, software distribution would provide an opportunity to gain greater brand exposure and brand development opportunities.Further, developing software distribution relationships is often a lengthy process which can lead to meeting many other comparable smaller companies, in addition to distributors willing to take a chance on a new and unknown application. Software distributors can be source of long-term knowledge and insight not accessible anywhere else.

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