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.
The direct comparison
| Criterion | Direct sales | Distributor |
|---|---|---|
| Investment cost | High (salaries, cars, training) | Lower upfront investment, but commission/margin |
| Market knowledge | Direct and under your control | Dependent on the distributor |
| Customer data | Direct customer access | Access depends on the contract and distributor |
| Scalability | Slower (recruiting, onboarding) | Faster across multiple regions |
| Market penetration | Selective but deep | Broader coverage possible |
| Complex products | Well suited with the right technical expertise | Requires sufficient technical and clinical expertise |
| Switching channels | Directly manageable | Often restricted by contract |
When distributors are the right choice
- You want to enter a new country faster without building your own local sales infrastructure
- Your budget is limited and you need proof of concept
- The product requires little explanation or ongoing service
- You need the distributor's local regulatory and commercial expertise
- The market is too small to justify your own field sales team
When direct sales is the right choice
- The product requires significant explanation or intensive after-sales training
- Customer data and market intelligence are strategically critical
- High margins justify the cost of your own sales team
- Differentiation comes from the depth of advice and expertise, not from the product itself
- KOL relationships should be built in-house
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
Effective distributor costs¹
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.
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.
Published June 2026