Lynn Fredricks of Paradigma Software continues with the series on the topic of exclusivity vs non-exclusivity in distribution

Talk back on the Distribution and the Channel Forum.

It is important to understand a key difference between a republisher and box mover when the topic of market exclusivity comes up; treating a republisher like a box mover may appear to increase your margins, however it can end up losing you long term profits and market influence.

This is the first of a multi-part series of articles that one day will constitute a new vendor's sourcebook. That is, things I wish I knew when I first entered the software business - Lynn Fredricks, president, Paradigma Software.

Talk back on the Distribution and the Channel Forum

It is hard to believe that the Internet has been an effective medium for software sales for almost ten years. In the mid 90's, many software companies started to use their websites for more than just product literature dissemination but hardly depended on it for transactional download sales. Most non-shareware, shrinkwrapped titles were sold through retail or mail order, both of which remain today, primarily supplied by distribution. An uncountable number of software vendors formed since the mid 90's, many of which came into existence without any knowledge or understanding of what a distributor is or the value they represent.

Many vendors that do not acquire experienced staff attempt to set up distribution channels but end up exiting for a variety of reasons - this happens often because the vendor never understood the role of distribution other than as a necessary evil to reach end users.

Here is a list of some distribution partners. For the time being, we will set aside what a publisher is; what constitutes a publisher varies greatly by software product genre (application vs entertainment).