the arnetech model

We have tens of years of experience with different kind of partnerships and based on this experience we have developed The ArneTech Model. Resellers are not interested in if your market entry is successful or not. They are after making a profitable business for themselves and will focus on quick wins. On the other hand, market entry or internationalisation consultants are focused on doing preparations and assisting you in your market entry. What is unique about the ArneTech Model is that we combine making a successful market entry for your product with actual sales and resales activities. Our interested is to actually generate sales and to succeed in entering the Australian market. From there on we're also happy to continue reselling your product on the Australian market. We can provide you with the resources you need to enter and to serve the Australian market.

 

Finding resellers is one the most typical models of new market entry and the relative low cost of the model is one of the reasons for that. The typical challenges with the reseller model is to get commitment or visibility into to the market and the fact that the start is typically relative slow. And if you consider the situation from the reseller's perspective, it's no surprise. They are focused on making a good business for themselves and starting with a new product on a new market is rarely profitable in the first 6-24 months. A reseller might see a good opportunity with a new product and even get enthusiastic about it but in the end they don't want to risk too much pushing for something completely new. Also a reseller has no added-value in reporting to the provider about the activities they are performing, the response they are getting from the market or the pipeline they are having. This leads to a situation where you as a technology provider rarely have good visibility to the market or to the activities made to enter the marker.

 

We have changed this with combining resales with market entry services. This means that the cost is a bit higher than just signing a reseller and hoping for the best but still a fraction of the cost of hiring own people or let alone doing an acquisition. By using our market entry service you get most of the benefits of having your own operation without the high costs and long-term commitment. It's easy to get started and to adjust the scope based on the progress and the response. Our market entry service is all about having a part-time (or even a full-time) sales person, country manager, business development manager (or whatever you need) as an outsourced service. Thus you will have full control and visibility on the activities being made and you have the right to demand and to expect the level of reporting or activities that is typical for your company. In many cases there are also government grants or subsidies (for international growth or expansion) that you can apply for to cover some of costs of the market entry services.

 

There are tens of different partnership and market entry models such as resales partners, marketing partners, lead generation partners, distributors, agents, hiring one sales person, starting an own local operation and acquisition. All of these have a different mix of risks, costs, expected results, resource requirements etc. The target of a market entry is to generate positive cash flow and preferably as much as possible and as soon as possible. In most cases investing more money and resources increases the commitment and the chance of success but also the risks. We have compiled below a comparison chart of the differences of various models:

Partnership type / Criteria

Chance of

success

Cost Risks Speed Control

Reporting /

visibility

 (Value-Added) Reseller Low  Low Low Slow to Middle None to Limited None to Medium 
Marketing partner / lead generation Low Very Low Low Very Slow None None to Medium
Agent Middle Low to Middle High Middle Limited Low to High
Own local operation or company Middle to High High High to Very High Fast Full Full
Acquisition Middle to High Extremely High Very High Very Fast Full Full
The ArneTech Model Middle to High Low to Middle Low Fast High High