“Find a local partner” is not yet a route-to-market decision. A commercial agent and a distributor can both create access, but they usually occupy different positions between the supplier and the customer. The distinction affects control, risk, customer ownership and the cost of ending the relationship.
Who contracts with the customer?
A distributor normally buys and resells on its own account. It takes a commercial position between supplier and end customer and may control local pricing, stock, credit risk and the surrounding service model.
A commercial agent is an independent intermediary with continuing authority to negotiate, or in some cases conclude, transactions on behalf of the principal. The supplier generally remains closer to the customer contract and carries a different set of responsibilities.
The labels used in a presentation or contract are not enough. The actual rights and activities matter.
What happens when the relationship ends?
For commercial agents covered by the EU Commercial Agents Directive, termination can trigger an indemnity or compensation regime. Article 17 requires Member States to provide one of those protections. Under the indemnity model, entitlement can arise where the agent brought new customers or substantially increased business and the principal continues to benefit. National implementation and the facts of the arrangement determine the result.
The Directive concerns self-employed intermediaries in relation to the sale or purchase of goods. Software, services and mixed arrangements require particular care because national law may define or extend protection differently.
Decide the operating model before selecting the name
Before appointing either route, write down who will own the end-customer relationship, set commercial terms, hold customer and pipeline data, fund market development, provide technical support, carry inventory or credit exposure and manage the transition if the relationship ends.
A partner with attractive contacts can still be the wrong structure. Market access and operating control need to be evaluated together.