Founders chase distribution deals like they're the finish line: get into the network, and growth follows automatically. It doesn't work that way. A distribution partnership is only as good as the incentive alignment behind it, and most of the deals I've seen underperform because that alignment was never actually built.
Diligence the Sales Force, Not Just the Brand
Before I sign a distribution agreement, I want to know how the distributor's reps are actually compensated, and whether my product competes for their attention against a line that pays them a higher commission. A distributor with a strong logo and a weak incentive structure for my specific product will quietly deprioritize me in favor of whatever earns their reps more, no matter what the contract says about "best efforts."
I now negotiate specific activity commitments, not just territory exclusivity: minimum number of sales calls, required inclusion in seasonal catalogs, guaranteed shelf or line-card placement. Vague best-efforts language is unenforceable in practice, even when it looks fine on paper.
Performance Triggers, Not Just Term Length
Every distribution agreement I sign now has a performance floor tied to specific volume by a specific date, with the right to convert to non-exclusive or terminate if the distributor misses it. Exclusivity without a performance obligation attached is a one-way option for the distributor to sit on your territory without doing the work.
The distribution partners who move the needle are the ones whose economic incentives are already pointed the same direction as your growth goals. Everyone else is a logo on a slide deck. Diligence the incentives as hard as you diligence the brand name on the door.