On Thursday, February 8th, we attended the indirect sales club event, where our founder, Léo Denes, shared his expertise on internationalization and success strategies. Indirect sales were at the heart of the discussions. In this article, we’ll explore how to leverage partnerships to expand internationally.
International Expansion Strategies:
Firstly, it’s crucial not to act opportunistically or blindly follow others. Each company has its own market and must adopt tailored strategies.
The question often arises whether to establish a direct presence in the country or operate remotely. Both approaches are possible and effective. Direct sales involve acquiring a local company, recruiting local staff, or using an International Business Volunteer (VIE) contract, which allows a one-year assignment abroad to explore local markets and initiate relationships with clients and partners. This option is suitable for those exploring new markets without permanent establishment. However, if the goal is genuine expansion, strengthening the local team is preferable.
Another option is to seek local partners who already have an established clientele, market knowledge, and relevant marketing expertise. This approach quickly finds clients and understands the local market while maintaining a geographic distance. Indeed, the creation of partner networks requires methodology and tools. Recruiting the right partners and managing them to optimize lead generation is a true profession. It’s crucial to find a partner whose activities complement yours to promote your product to their existing clientele effectively.
Common Mistakes to Avoid:
Several aspects should not be overlooked. Firstly, consider the distance. Time zone differences can pose significant challenges to expansion. If your company offers customer service, managing it from another country can be very difficult or nearly impossible due to inconvenient call hours in your home country, as experienced by Aircall.
Cultural differences are also important to consider, as they significantly influence interactions with consumers or partners in a new market.
Ensuring a good product market fit is crucial and requires in-depth market analysis to adapt your product to local needs and preferences.
Lastly, it’s important not to underestimate the costs associated with entering a new country, which require significant financial and time investments. Be aware of these aspects before starting and ensure you have the necessary financial resources and time to succeed.
A Successful Expansion Example: Aircall
Aircall‘s international success story began unintentionally. They went from having no presence in the Asia-Pacific region to a team of over 30 people generating 10% of their total revenue in the region. It all started when they noticed customers in Australia but couldn’t effectively meet the demand due to distance and time zone differences. They decided to hire a VIE locally to better serve their local clients.
Their only link to the region was through partners like Salesforce and HubSpot. These partnerships played a crucial role in their Asia-Pacific expansion, as they already had clients in the region, allowing Aircall to sell its product to these existing clients. Over time, they strengthened their local team while developing their indirect sales strategy through new partnerships. Today, they are also partners with Airwallex, PartnerStack, and JobAdder.
Aircall adopted a dual strategy: expanding direct sales by growing their local team and developing indirect sales through partnerships.
Key Success Factors:
Ultimately, investing in local marketing to promote the right product is essential. Understanding local competition to effectively stand out is crucial. Most importantly, leveraging local markets and established client networks saves time and money and addresses the previous two points. Partners already have local marketing and competition knowledge, providing a definite advantage in this approach.
