By engaging with Farpoint instead of “going it alone” your company will realize the following benefits:
- Capital Infusion: Instead of spending your capital you’ll be increasing your capital—without giving up equity
- Low Risk: We offer a one-stop shop with a proven sales record in all major global markets
- Time to Market: We attack all markets immediately; there’s no need for you to recruit, hire and train your own international sales force
- Focus and Motivation: We have our own capital on the line so we are highly motivated to achieve a fast ROI for our investors—and for you
We strive to make the engagement process short and simple, as shown below
Before we agree to engage with a client, we first conduct a market evaluation to determine the addressable market size in each region for the next three to five years. We also analyze the competitive landscape and potential barriers to entry (technical, legal, cultural, linguistic, etc.) in each region. This analysis takes from two to four weeks and is completely free of charge whether we decide to engage or not. We have no incentive to overestimate the market size since that only increases the amount we have to pay you up front for the rights to those markets.
Agreement on Terms
If both parties agree to proceed based on the results of the market evaluation, we will next negotiate the terms of the engagement. The primary points to be determined are:
- What territories will be covered?
- How long will the engagement last?
- What is the purchase price to Farpoint of the sales and marketing rights in the territory?
- What will be the commission rate and terms of payment?
Farpoint has boilerplate agreements to fit most typical engagements. Assuming we come to agreement on the business terms quickly, we can execute the agreement in two to four weeks.
Global Sales Training and Initial Prospecting
Our global team conducts training sessions with their local teams and draws up a list of targets. Depending on the nature of the product, the targets could be distributors, system integrators, independent agents, developers or end customers.
Signing up Channels
Typically, although not always, international business is done via local channel partners. Farpoint has an extensive network of powerful channel partners and can quickly bring them on board, train them and have them out selling to end customers. We aim to sign the first channels within three months of executing an engagement agreement with a client.
End Customer Sales
The channel partners will usually require help making the first few sales. Farpoint will assist them directly by attending customer presentations as a representative of your company. Throughout the sales process, the channel partner will learn “hands-on” how to pitch the value of your product, present a business case and close deals. Within six months of signing on as a channel, we expect the channel to be able to sell independently.
After the first year, you may want to establish your own local presence in the most promising geographies. We understand that your goal is to build a global business and we only want to be involved as long as you deem necessary.
During this phase we will assist you with establishing the local presence, hiring staff, leasing office space and making all of the necessary legal and tax filings to do business in each geography.
Extension of Term
At the expiration of the initial term of the agreement, we will discuss whether and in what manner you would like us to continue offering our services. At this time we can change the focus of the services, the territory and the business terms to reflect the progress made to date and current business priorities.