If I have a company headquartered outside the US and going to work with US companies.

What is the best way? Set up sales office in the US or hire independent sales person?

asked Feb 19 '10 at 05:39

Yosef's gravatar image

Yosef
715


Are you selling a physical product, or something more like a software? Which parts of the US are you targeting? Consumer segment? Any info you may be able to give on the patterns of purchase, etc, may help clarify the question a bit.

answered Feb 20 '10 at 16:07

Des's gravatar image

Des
44719

There are obviously a lot of factors involved, but as a starting point I would say the easiest, leanest and cheapest penetration would be to: establish a legal entity in the US with a US address and hire a rep. The rep does not need to reside or work in the same address that the legal entity is, it is more for formalities and to help encourage 'trust' from the American consumer/user when your About Us has a US address and phone number.

Setting up a whole Sales office sounds like a big commitment and investment, and might be something the rep evolves into.

answered Feb 25 '10 at 21:59

Hiconomics's gravatar image

Hiconomics
5064

Why do you think that this is cheaper than dealing with a local partner that is already established and doesn't have specialized resources funded by just your product? Just curious...

(Feb 25 '10 at 23:47) Des Des's gravatar image

Like a franchisee? I hadn't actually considered that as a 3rd option... but yes, franchising or getting local representation by a pre-established company can be a big help (especially with countries that have very different cultural and legislative issues). It does require a lot of preparation and management of the franchisee or local rep... you also have a lot less say in how things progress but I agree, it probably the cheapest way to start. There are a lot of dependencies, and thing is, neither of us know the context or the product/service as there has not been any answer to your questions

(Mar 02 '10 at 04:10) Hiconomics Hiconomics's gravatar image
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