Building an Online Distribution Channel
May 21, 2025
by Partner Colorado Credit Union
A distribution channel is how your business connects with customers, whether it's the platform they use to buy or the process they go through to make a purchase. For growing businesses and established enterprises alike, online channels offer a chance to expand into new markets, experiment with digital service models, and sharpen the way you deliver value. Technology and consumer behavior are evolving quickly, and businesses that adapt early often gain the edge.
If your company is exploring growth opportunities or looking to improve how it sells, it might be time to reconsider your current online channels and explore new ones.
Innovative models don't always come from tech. Many U.S. manufacturing, logistics, and professional services firms are building spin-off platforms or strategic partnerships to test new distribution models.
Investigate your industry marketplace and decide if it’s worth trying this as a channel to new customers to complement how you sell.
But you don’t need to be a tech company to have customers subscribe or have your own payment system, as digital payment platforms such as PayPal or Stripe allow you to set up and process recurring payments yourself.
Recurring revenue models aren’t just for media or software companies. They're being adopted in manufacturing, agriculture, consulting, and healthcare. Common examples include:
Online media and gaming sites also use this model to provide a certain amount of gaming/information for free, with upgrade options to purchase inside the product.
You too may be able to deliver parts of your business for free while creating alternate revenue streams, though your giveaway doesn’t need to be product. It could be offering free software tools, ROI calculators, white papers, or training videos to position your business as a thought leader and bring in high-quality prospects.
You can also monetize traffic via targeted advertising, paid upgrades, or affiliate revenue. Some manufacturers now offer parts catalogs and maintenance guides for free, monetizing traffic through partnerships or service upsells.
To help you choose the right channel:
Stay competitive through digital awareness
To stay ahead, monitor your sector’s top digital tools, online marketplaces, and consumer platforms. Also benchmark competitors' channel strategies, use customer feedback and web analytics to understand how clients prefer to interact.
Stay informed on emerging business apps and channels that are relevant to your industry. Regularly evaluate whether new software or channels could improve your distribution and ensure your business model remains profitable.
If your company is exploring growth opportunities or looking to improve how it sells, it might be time to reconsider your current online channels and explore new ones.
New ways of selling
Traditional direct sales, mail orders, or in-person meetings still have a place. But digital models have unlocked scalable ways to reach wider markets. Businesses of all sizes, including manufacturers, franchisors, and service firms are now using more flexible and hybrid methods, such as:- Drop shipping and third-party logistics (3PL) when another business holds the inventory and ships to your customer. It allows you to optimize your inventory and warehousing or test new product lines through drop-shipping models.
- Affiliate networks who receive commission by recommending other businesses products. Enterprises with a wide product catalog often benefit from commissioning influencers, media outlets, or B2B referral partners to drive sales.
- Brokerage-style platforms such as industrial equipment, commercial property, or niche consulting can benefit from using digital broker marketplaces to match buyers and sellers.
- Short-term access models like transport monetizing unused assets through hourly or daily rentals.
- On-demand services like custom product manufacturing, consulting or even book printing
- Resource sharing or fractional ownership offering access to underused assets.
Innovative models don't always come from tech. Many U.S. manufacturing, logistics, and professional services firms are building spin-off platforms or strategic partnerships to test new distribution models.
Online marketplaces
A business no longer needs its own channel to market. The growth of third-party marketplaces like Amazon, or specialist global sites like Etsy, which sell mainly art and homewares, allow you as an independent seller to list goods or services which they promote to their database of customers. Yes, they may take a fee, but the benefits may include low set up costs, easy product listings, access to their customers and payment processes set up for you.Investigate your industry marketplace and decide if it’s worth trying this as a channel to new customers to complement how you sell.
Subscription models
Paying a monthly fee is increasingly embedded into our way of buying, where we’re willing to commit to recurring payments in exchange for continually updated products or services. Netflix, Disney, Neon, Apple are good media examples.But you don’t need to be a tech company to have customers subscribe or have your own payment system, as digital payment platforms such as PayPal or Stripe allow you to set up and process recurring payments yourself.
Recurring revenue models aren’t just for media or software companies. They're being adopted in manufacturing, agriculture, consulting, and healthcare. Common examples include:
- Leasing or hardware-as-a-service, from farm equipment to medical devices, larger companies are shifting from one-time sales to ongoing service packages.
- Enterprise subscriptions or retainers for professional services, managed IT, legal, or strategic consulting.
- Consumables on autopilot, like food producers and manufacturers with regular-use items bundling delivery into monthly pricing.
- Premium content or training. Good examples are industry reports, certification prep, or gated research portals offering new revenue streams for knowledge-based firms.
Giving stuff away for free
Some of the largest companies in the world such as social media like Facebook and LinkedIn, and search, like Google, have business models which offer the core product for users at no cost, who then post, blog, discuss, share and participate for free. The traffic generated is monetized, usually from online advertising.Online media and gaming sites also use this model to provide a certain amount of gaming/information for free, with upgrade options to purchase inside the product.
You too may be able to deliver parts of your business for free while creating alternate revenue streams, though your giveaway doesn’t need to be product. It could be offering free software tools, ROI calculators, white papers, or training videos to position your business as a thought leader and bring in high-quality prospects.
You can also monetize traffic via targeted advertising, paid upgrades, or affiliate revenue. Some manufacturers now offer parts catalogs and maintenance guides for free, monetizing traffic through partnerships or service upsells.
Check new ideas are feasible
There are many ways you can introduce new online services, products or channels to your business, and you can choose more than one. If you do implement a new way to sell, make sure the business model is profitable and can stand alone if needed.To help you choose the right channel:
- Confirm that pricing and delivery models are financially viable at scale.
- Test new ideas as pilots, especially when entering new industries or customer segments.
- Analyze industry benchmarks and adapt based on real data not just trends.
- Ensure cybersecurity and data privacy protections are up to date, especially if third parties handle customer transactions.
Stay competitive through digital awareness
To stay ahead, monitor your sector’s top digital tools, online marketplaces, and consumer platforms. Also benchmark competitors' channel strategies, use customer feedback and web analytics to understand how clients prefer to interact.
Next steps
- Explore offering subscription-based models where customers pay for recurring products or services. Use digital payment platforms to set up recurring billing for consumables or professional services, ensuring consistent revenue.
- Evaluate your industry’s most active online marketplaces. Test listing products or services to gauge response before investing heavily.
- Consider offering part of your service or product for free to attract a larger audience and generate income through premium upgrades or advertising.
- Use lead magnets like free tools, calculators, or exclusive content to bring in new leads and consider monetization paths through upgrades, service tiers, or advertising.
Stay informed on emerging business apps and channels that are relevant to your industry. Regularly evaluate whether new software or channels could improve your distribution and ensure your business model remains profitable.