The basic criteria are listed below:-
1. Investment: - For a new distribution agreement, the company should analyze the investing capacity of the person and there should be certain minimum levels of standards.
2. Infrastructure: - The distributor should also need some changes in the infrastructural arrangement:-
i. The minimum storage should be there and that should be free from rain, direct sun light and must be covered
ii. The entrance should be there for the lorry service
iii. The basic technical facility like computer, internet connection and company telephone
iv. Minimum no. of vehicles should be there based on the area and there should be enough manpower to do it.
3. Involvement: - The distributor should involve in every roles and responsibilities of distributor completely to make a smooth running of the organization. The involvement part will be analyzed based on the following thing:-
i. Previous experience
ii. The experience in handling sales people
iii. The regularity in purchase ordering
iv. Involvement in secondary sales & its analysis
4. Influence: - The distributor’s family background will be analyzed and will consider his social image as a major factor for this distribution. His experience and contacts in the society also should be counted.