Becoming a Product Distributor from Home

Christine Harumi W.


One of the most important decisions you will make when you become a distributor is where to set up shop. Keeping your overhead low, while keeping a functional and professional environment are some of the key things you will need to consider when deciding where to start your home based distributor business.

These days, more and more distributors are choosing to work from home. Technology has made it easier than ever before to become a distributor from home. Not only does working from home provide convenience it also cuts back on cost - which is particularly important when starting a distribution business!

As with any home based business venture, there are several things you will need to consider before making the decision to become a distributor from home:

1. The first thing you will need to consider when you become a distributor from home is if you will need a license or permit. Interestingly enough, there are certain neighborhood associations and municipalities that prohibit running a business from your home or may require you to obtain a special license/permit to do so. So, it will be in your best interest to look into this before you decide to become a distributor from home.

2. If you become a distributor from home, you should also consider setting up your legal structure prior to starting. Each country will have their own rules and processes around formalizing your business’s legal structure. In the United States for example, if you decide to set up a sole proprietorship (which is the route most US distributors from home take), you won’t need any legal documentation. However, if you decide to set up your distribution business from home as a Limited Liability Company (LLC) or Sub-S status corporation you will need legal documentation.  We suggest seeking legal counsel before deciding on the best option for your type of home based distribution business.

3. When you become a distributor from home it will also mean establishing professional business practices. One such practice is keeping your personal expenses separate from your business expenses. This can be achieved by setting up a business bank account, obtaining a business credit card, and implementing a book-keeping system to keep track of your distributor business expenses and income. If you plan on taking a home business deduction it will be important to keep good records as the your government tax authority could audit your business and its expenses.

4. Another consideration when you become a distributor from home is making sure you set up a dedicated, professional business environment. The space you create should be free of barking dogs, screaming children, and other distractions that can impede your ability to run your business from home.

5. If you decide to become a distributor from home, you could also invest in a post office box for business related mail. This will ensure that you and your home business are secure.

6. It will also be important to set up boundaries or parameters with family and friends and stay committed when you become a distributor from home. We recommend setting up business hours and asking everyone to respect the time you’ve dedicated to the success of your home based business.

Becoming a distributor can be very lucrative and doing it from home initially can help you cut down on costs and evaluate whether it’s the right opportunity for you. PanXpan works with a variety of successful home based distributors. If you’ve set up your home based distribution business and are ready to start looking for product distributorship opportunities, we welcome you to browse various distributorship opportunities posted on our online platform here.