Chapter 22: Finding the Right Distribution/Sales Channel

Figuring out how to sell what you’ve built isn’t just about making sales—it’s about finding the most effective path to scale. In Chapter 22 of Start. Scale. Exit. Repeat., Verne Harnish explains that many great ideas die not because they’re bad, but because they’re delivered through the wrong distribution or sales channel. The right product with the wrong channel equals failure.

Build Around Your Real Buyer

Success begins with clarity. Harnish reminds us that “to develop effective sales channels, you have to know who your real buyer is, and build everything around them” (Campbell, 2023, p. 172). Hostopia’s pivot from selling to IT managers to targeting resellers through a wholesale model was a defining moment. That shift to a channel-focused strategy allowed them to grow by aligning product, messaging, and sales strategy to the people who could move volume—not just the end user.

Distribution is Not One-Size-Fits-All

What works for one company may not work for another. Harnish contrasts examples like Hugo and Top Gun: Maverick, where quality alone didn’t determine success. The structure of distribution—how the product gets to customers—plays a major role. Choosing between direct sales, resellers, joint ventures, or retail partners is less about preference and more about fit.

Scale Through Strategic Partnerships

Harnish emphasizes that strategic alliances can be the best channel for growth. The Hostopia example is instructive: their Canadian business took off once they partnered with providers offering complementary services. In today’s landscape, a distribution partner with the right audience, infrastructure, and incentives can help a startup achieve more with less capital risk.

Distribution Strategy Shapes Everything

Your chosen distribution channel influences product features, pricing models, messaging, and even company culture. As Harnish writes, “To scale, you’ll have to be innovative in how you approach who you target, how you get them, what value you offer—and how your distribution can carry that” (Campbell, 2023, p. 176).

💡 Final Takeaway

Great distribution isn’t a nice-to-have—it’s the difference between obscurity and scale. Choose your sales path with intention, based on real buyer behavior, not assumptions.

🔁 Coming Next

In Chapter 23, we’ll explore partnerships and earned media—how to get attention without paying for every click.

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References

• Campbell, C. C. (2023). Start. Scale. Exit. Repeat. Lioncrest Publishing.