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MedTech 8 min read

Distributors vs. direct sales in MedTech: the decision that shapes everything.

Choosing the wrong sales strategy costs you more than margin. It costs you time and control. How to make the right decision, what each model costs, and when switching channels makes sense.

One of the most consequential decisions when entering a MedTech market is this: build your own field sales team or work with distributors? The answer determines more than your cost structure. It also determines how direct your access to customer data is, who represents your brand, and how quickly you can respond when the market changes.

35–50%
potential distributor margin for active MedTech sales¹
about 35%
of capital equipment in Europe is sold through distributors (Roland Berger)
about 55%
of MedTech consumables in Europe are sold through distributors (Roland Berger)

The direct comparison

CriterionDirect salesDistributor
Investment costHigh (salaries, cars, training)Lower upfront investment, but commission/margin
Market knowledgeDirect and under your controlDependent on the distributor
Customer dataDirect customer accessAccess depends on the contract and distributor
ScalabilitySlower (recruiting, onboarding)Faster across multiple regions
Market penetrationSelective but deepBroader coverage possible
Complex productsWell suited with the right technical expertiseRequires sufficient technical and clinical expertise
Switching channelsDirectly manageableOften restricted by contract

When distributors are the right choice

When direct sales is the right choice

The hybrid solution: dual channel

Many MedTech companies combine both models: distributors for broad market coverage and their own key account managers for strategic accounts. This can work, but only if channel conflicts are resolved in advance. Who serves which account? Which margin applies to which channel? How are leads assigned?

Direct sales costs (CHF/year, DACH)¹

Salary + benefits120–180K
Car + expenses20–30K
Training & onboarding10–20K
CRM + tools5–10K
Total per rep155–240K

Effective distributor costs¹

Margin on revenue35–50%
Marketing support10–30K
Training & conferences10–20K
Management effortVariable
Break-even
Depends on margin, revenue, service requirements, and cost structure

¹ Guide values from practice for the DACH region. Actual costs and margins vary depending on the product, market, service requirements, compensation model, and contract structure.

“A good distributor opens doors you can't open on your own. A bad distributor keeps them shut, and your name is still attached to them.”

Switching from distributor to direct sales

This transition is often more complex than expected. The distributor has the relationships and often direct access to customers, while exclusive agreements or notice periods may add further constraints. If you're planning the transition, you need a clear strategy and enough lead time: clarify contractual access to relevant customer data, account for notice periods, and prepare key accounts for the transition early.

The core question

Distributors or direct sales isn't a matter of conviction. It's a matter of volume, product complexity, market structure, and the level of customer access you need. Run the numbers before you decide and you can make a more informed choice. If you don't, you carry the risk later.

Sources: Roland Berger (2023), European Medical Technology Distribution: An Attractive Opportunity for Investors · Niehoff & Hilger (2025), Drafting PMS and Vigilance Obligations into Medical Device Distribution Agreements, Taylor Wessing.

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