When i first became interested in how distribution works i often asked, what do distributors do to justify their share of sales dollars? The answer can be summarized in two words: convenience and clout.

Rather than dealing with hundreds of retailers one by one, you can work with a distributor and let it handle the details of mass dissemination. That's the convenience part.
The clout part is: Chances are you're and individual or a small label with a limited track record of sales. With all the other record labels fighting for store rack space, why should retailers choose your product? Just because you say it's good? They'll need more convincing than that! And that's where distributors com in. For the most part they have longstanding business relationships with the stores. They're familiar with what sells and what doesn't. Their acceptance of and confidence in your music will go a long way toward convincing retailers that your product is worth a shot.

Record chains tend to deal only with approved suppliers and with a few of them as possible. A one or two record label is unlikely to be approved as a vendor. Thus chains may be off limits to small labels that wish to sell to them directly-an excellent reason to seek representation by an established distributor.

So the main service that distributors provide is to stock your product, get it into retail outlets, and pay you when the product sells.

A key part of this job is convincing the retailers to accept your product. The distributor's sales representatives contact individual accounts in person by email or via phone. They provide buyers with their catalog of products along with other product and promotional information culled from materials that you have provided them. They provide information on pricing, discounting and in-store promotions. They then take orders and follow up to ensure delivery of the product in a professional manner. They also track product sales , and inventories.

In turn they can also provide the record labels with information on product popularity or promotional successes and non successes. Over all its an invaluable service that amounts to the bottom line.

For some distributors the basic service stops there, other distributors provide more.
Some do specific target marketing and in depth market research however everything comes with a price.
If your looking to find a distributor look to another article called "How to find a Distributor."

For further in depth info please refer to Tad Lathrop "this business of music."