Does the person you are affiliated with have to know????

**robousy** · 03-04-2009 03:21 PM

So here's a funny question,

I've discovered what I believe is a unique angle on a product (lets call it product 'x') that no body has yet explored, or taken advantage of.

I want to set up a web based storefront and via a strong marketing campaign encourage people to purchase product 'x' from my website - however, the orders will go directly to the main distributor. Obviously I add a % to the distributor price and make a small profit on each purchase.

My question: do you even have to talk to the distributor about this?? Is it legal to do this? Or can I just go ahead an do it??

**Moneymaka** · 03-04-2009 03:39 PM

Here's a funny response:

Why would you want to do that?

Or am i missing something here?

**mthomas** · 03-04-2009 03:50 PM

I'm not a lawyer, but I'd guess it really depends on the company's policies. Perhaps they allow anyone to resell their products, or maybe they require a special license. If I were you, I'd contact them and find out what their reselling policy is before making any moves.

**Doodyps** · 03-04-2009 03:55 PM

wouldn't this mean assuming that the consumer will do ZERO price comparison? Wouldn't you inevitably have to charge more than the distributor?

Normally people buy wholesale, then sell at retail price or at some discount.

Aren't you essentially proposing taking orders FOR the distributor as a middleman and earning a commission?

The only way I see this working is if you have an incredibly popular and credible site (like cnet or youtube) advertise a product. Then people may buy it from those sources without checking around the internet for other options. Otherwise, people will see the product, and if they want it, they'll simply go to Amazon or the people who make it and find it cheaper.

**robousy** · 03-04-2009 04:53 PM

Good answers.

Yup, I figured probably contacting the seller would be the best way to go.

Like I mentioned in my first post, I have a unique marketing angle - but you are all right, it makes sense to try to figure out some kind of deal with the distributor.

**FromChangetoRange** · 03-04-2009 05:22 PM

well yes prob, they may want to know whats representing them.
plus inorder to be affiliated through a website they may have to set it up for you.

**HarveyJ** · 03-23-2009 08:37 PM

Why not just do it legitimately through and affiliate marketing or dropshipping channel?

Seems to involve less hassle, less legal issues and already has a system setup to do it where the distributor actually WANTS you to do it.
Also, they may get suss that they keep getting online orders from the same IP address when your automated system fills in all the details differently each time.

**elliotiscool** · 03-25-2009 12:04 PM

I would check out their affiliation policy. Although I have not looked up any background on this, If I owned the company and found you doing this, and IF I felt what you were doing was hurting my business, I would most likely do 1 of 2 things:

1) Think of this like a fly flying around my head. If it is not making me lose a lot of money and I am not feeling very threatened by it but I do not like it, I would not push litigation because it is not worth the time and effort on my part, and instead I would send you a letter containing a cease and desist.

2) If it is affecting me too much, I would push litigation and claim damages. My proof being that you degraded my product by increasing its price, thus decreasing my sales.

If it seems like they wouldn't want you to do this:

How can they find out you are doing this?

Now think about the amount of profit potential you have....

Put both of these questions side by side and see if the risk is worth the profit potential.

Entrepreneurs are risk takers, but only if the risk is not too great over the potential loss and potential profit.