Originally Published MX September/October 2001

The Internet can be an effective channel for locating, qualifying, and selling distributors on a company's products.

Darren McMaster

Outside of start-up costs, product development, and regulatory requirements, one of the biggest obstacles facing medical technology companies is developing a quality distribution network. Most medtech companies that do not have the capital to create an internal sales force, and choose not to license their technology, will turn to independent medical distributors. For years, the process of developing a qualified independent distribution network has been long and laborious.

After deciding to take a product to market rather than licensing the technology, executives of medtech companies must decide on the method by which they will distribute their company's new product. Outside of building a direct sales force, the only remaining option is to find an existing one. Yet pitfalls abound between the decision to put together a distribution network and the actual creation of that network.