Distributorship vs. Direct Sales: Choosing the career path for you in medical device sales
In the past couple years, medical device sales reps endured the same challenges felt across all industries–virtual communication dominated business environments and customer needs rapidly evolved. Fortunately, the medtech industry proved itself to be resilient amidst rapid change. In fact, medical sales representatives reported a 2.6% increase in incomes and excellent job satisfaction according to data collected by MedReps.
As the industry continues to grow, demand for skilled salespeople will run high. Patient needs are rapidly changing, and medical device sales reps have a unique opportunity to connect healthcare providers with technology that can improve quality of life. This meaningful work also has major earnings potential. With so many different opportunities in medical device sales, identifying the right path for your skills and goals can be challenging.
In this post, we’ll explore distribution and direct sales, the most prominent career paths in this industry. With this insight, you’ll be prepared to make an informed decision about which pathway is best for you.
Medical device distributors vs. direct sales reps: what’s the difference?
There are two main pathways in medical device sales: distributorships and direct sales. The pathway you pursue impacts every aspect of your career including your salary, benefits, product portfolio and growth opportunities. Since each pathway presents unique risks and benefits, the best pathway for you will depend on your lifestyle, career priorities and long-term goals.
Keep reading to understand what sets these medical device sales career paths apart.
Direct sales representatives
The biggest difference between direct sales representatives and distributors can be found in their product portfolio. Direct sales representatives work for a single manufacturer or company while distributors may carry multiple companies. As a result, direct sales reps may have a more limited product portfolio. That may sound like a hindrance, but that’s not necessarily the case.
Although their product portfolio can be narrower, they’re likely to work for companies with major brand recognition and established credibility in the marketplace. In addition, direct sales reps have a strong ability to negotiate contracts and prices that work for their target client, allowing them to pose stiff competition to other manufacturers.
The growth potential for direct sales reps may be one of the biggest benefits to this career path–though the company cars, insurance and retirement benefits are a major perk as well. Skilled and experienced direct sales reps have the potential to climb the corporate ladder towards management or director level positions, where average earnings exceeded $215,000 in 2021.
Medical device distribution
Whereas direct sales representatives sell products from a single manufacturer, distributors typically have a wider product range and can even carry products for multiple medical sectors. This variety may enable distributors to connect healthcare providers with the best product for their unique needs, and the variety enables distributors to expand their revenue streams.
This can help reduce the stress of one of the biggest risks in medical device distributorships–corporate buyouts. Because distributorships are most common among smaller companies, corporate buyouts can happen as major corporations seek to leverage unique technologies and eliminate competition.
Of course, these risks don’t come without the potential for huge rewards. Distributor reps can make an average of $188,545 a year according to 2021 data from MedRep, compared with an average of $177,993 for direct sales reps.
Choosing the best path for you
There is huge earning potential in both pathways. Because direct salespeople and distributors encounter unique risks and rewards, professionals looking to enter this industry or planning their next career move should consider a number of factors before taking the leap.
Determine what risks you’re willing to take.
Identify whether you prefer to work and live in a city or in a more rural area.
Assess your desired benefits and salary needs.
Rank your top priorities in a job.
Follow a path that matches your long term career goals.
As you determine whether distributor or direct sales is best for you, identify the top qualities you would like in a position. If stability, growth and benefits are important to you, then direct sales might be the best route. Alternatively, if you enjoy sales, love to challenge yourself and value your independence, then distributor sales might be the best fit. Ultimately, each pathway is rewarding and offers a fast-paced career full of challenges.
