Independant Distributor Consultant

[Deep Creek Distilling]

He is a new one for me, being new to distribution into a 3-tiered State (Texas).  I was approached by a gentleman who replied to a notice I posted on social media about distribution outside of my home state.  This individual says he can get me distribution through the distributors he already works with and of course butters me up all the way.  He is talking about 20- 30 pallets of product per delivery (140 locations).  Here is what he wants to make this happen:

1.  A $6,000 retainer fee just to start the discussion - 1st red flag for me.

2. 16% commission from what the wholesaler gets

3. $3,000 a month to start marketing and conducting tastings.

4.  1% commission in perpetuity as long as I am still selling in the state if he were to die - his pension plan I guess.

5.  He will be responsible for conducting events, at my expense (expense account) and that amount may go as high as $5,000 a month.

6.  Shows me distributor pricing (35% to move the product) and retailer pricing of 25% markup but those are his numbers, who knows what the real numbers will be.

The greedy side of me says that this is an opportunity to grow fast.  The cautious side says that he isn't really promising to do anything.  The retainer fee for me is OUT.  This person cannot produce a valid contract with any numbers on it, how do I know the first order will not be for 1 pallet or nothing at all.  I can get out of the contract in 30 days, but he still would have my $6,000 retainer and probably another $3,000 before its all said and done.  Is this normal?  Seems like I am the one who has to promise financial performance and this independent consultant promises absolutely nothing.  Seems like I am working for him.  Can anyone shed some light on what is normal?  Any I know everything IS negotiable.

[jocko]

Run.