MAPP Trap Moments: How Brand Owners Can Manage Online Sellers

January 3, 2024

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Listen to the episode

A quick-hit MAPP Trap Moments explainer on MAP policies and Authorized Reseller Programs: what each one actually controls, the two ways brands structure an ARP, and why independent reps and distributors make enforcement so hard to see clearly.

Note: This is not a numbered Legal Briefs episode. "MAPP Trap Moments" is a separate, shorter-format series hosted by AI voices "Brandi & Randy" that recaps brand-protection concepts in a casual, conversational style, without the legal disclaimer or attorney guest that opens each Legal Briefs episode. This one is an AI-generated audio deep dive built from MAPP Trap's own brand-protection resources, running about seven minutes, and is hosted at mapptrap.com's resources page.

This MAPP Trap Moments episode is a quick, plain-language walkthrough of the two foundational tools brands use to keep their online pricing and seller network in line: MAP policies and Authorized Reseller Programs (ARPs). Brandi and Randy cover the basics any brand owner needs going in: a MAP policy sets a floor on advertised price (not the final sale price, and not a legally binding contract), while an ARP is about control: deciding who is allowed to sell a brand's products at all.

The two walk through the two common ways brands structure an ARP: "everyone is authorized until they're not," which suits brands that already have a large, established seller base and need to gradually weed out bad actors, versus "nobody is authorized until they are," a stricter approach better suited to newer brands building their online presence from scratch. They also touch on the real-world consequences for MAP violations (loss of discounts and favorable terms, up to account suspension), what brands typically look for when deciding who belongs on the authorized-seller list, and why independent sales reps and distributors make enforcement especially difficult: visibility into who's actually selling a product is the recurring challenge. The episode closes, as MAPP Trap's other resources do, by pointing listeners to MAPTRAP.com and compliance@MAPTRAP.com for hands-on help.

  • MAP policies set a floor on advertised price to protect brand image and preserve authorized sellers' margins. They are a policy, not a legally binding contract, and don't control the final sale price.
  • Authorized Reseller Programs (ARPs) are about control: deciding which sellers are allowed to represent the brand at all, based on fit (seller type, online reputation, customer service, and brand alignment).
  • Two ARP strategies: "everyone authorized until they're not" (common for brands with an existing large seller base, weeding out bad actors over time) versus "nobody authorized until they are" (stricter, better for newer brands shaping their image from day one).
  • Consequences for MAP violations range from losing discounts and favorable payment terms to full account suspension, designed to incentivize consistent pricing across the seller network.
  • The hardest part in practice: maintaining visibility into who is actually selling a brand's products once independent sales reps and distributors are in the mix, and getting existing relationships to adapt to new ARP criteria.

Full Episode Transcript

[00:00] Welcome back to MapTrap Moments with me, Brandi.

[00:02] And Randy.

[00:03] And today we're gonna dive into how brand owners can manage online sellers.

[00:07] Yeah.

[00:08] And protect their brand's value online.

[00:11] Super important.

[00:13] Absolutely, some fascinating insights from the brand protection experts at MapTrap.

[00:17] Really is a Wild West out there, you know?

[00:19] You put your heart into building a brand and then suddenly you see your product online being sold for like way less than it should be.

[00:26] It makes me cringe just thinking about it.

[00:28] I know, it's a nightmare scenario for any brand owner.

[00:30] So what can brand owners actually do about this?

[00:32] Wow.

[00:33] Besides just, you know, freaking out.

[00:34] Yeah, so that's where MapTrap comes in.

[00:36] They've given us some great strategies to unpack today.

[00:39] Okay, awesome.

[00:40] Starting with map policies and authorized reseller programs.

[00:44] I love it.

[00:45] All right, so let's break those down.

[00:46] Let's start with MAP, which stands for Minimum Advertised Pricing Policy.

[00:52] Now this isn't about dictating the final sale price.

[00:55] Right.

[00:55] It's about setting a British line for how low a product can be advertised.

[00:59] Think of it like setting a floor to protect your brand's image.

[01:03] Got it.

[01:03] And make sure your authorized sellers can still make a profit.

[01:06] Makes sense.

[01:07] So map is all about that advertised price.

[01:10] What about these authorized reseller programs?

[01:13] What's the deal with those?

[01:14] So authorized reseller program or ARP is all about control.

[01:18] Okay.

[01:19] You get to decide who gets to sell your product.

[01:21] Okay.

[01:22] It's about making sure your brand is represented the right way by sellers who meet your standards.

[01:27] So it's like a VIP list for who gets to sell your product.

[01:30] Exactly.

[01:31] It's like having a VIP list for who gets to be associated with your amazing brand.

[01:35] Oh, I love that.

[01:36] A VIP list for sellers.

[01:37] Yes.

[01:38] Now, the expert at MAPTRAP told us there are actually two main approaches to ARPs.

[01:43] Right.

[01:44] Everyone is authorized until they're not and nobody is authorized until they are.

[01:47] Yeah.

[01:48] Can you break down with the differences between those two?

[01:50] Okay.

[01:51] So the first one, everyone is authorized until they're not is really common with brands who already have a ton of sellers online.

[01:58] So they start by putting an ARP in place and then gradually weed out those unauthorized sellers often by catching them violating the MAP policy.

[02:06] Oh, so it's like regaining control over time.

[02:09] Exactly.

[02:09] Now, the second approach nobody is authorized until they are is waste stricter.

[02:13] It's like starting from scratch.

[02:15] Okay.

[02:16] Brands only authorized sellers who meet their super specific criteria right from the beginning.

[02:22] So it's almost like building a brand new boutique where you hand select every single item.

[02:26] Perfect analogy got it this way.

[02:28] Is great for newer brands just starting to build their online presence allows them to really shape their brand image from day one.

[02:35] This is fascinating, but it sounds like actually implementing a MAP policy and an ARP can get pretty complicated.

[02:43] Especially for brands working with all those independent sales reps and distributors out there.

[02:48] Where do they even begin?

[02:50] You're right, it can be complex.

[02:51] There are definitely challenges when you're trying to get everyone on board and make sure you can see what's happening across your entire network of sellers.

[02:58] Just like hurting cats, right?

[02:59] It is like hurting cats.

[03:01] You've got all these sellers out there and you're trying to keep them all in line with your pricing and your brand image.

[03:08] Yeah, and that's where I think our friends at MAPTRAP would really emphasize getting some legal help.

[03:13] Yeah.

[03:14] Having a lawyer who understands brand protection can make a huge difference.

[03:18] Huge.

[03:19] And navigating this complexity and making sure your MAP policies and ARPs are set up the right way, legally speaking.

[03:27] Absolutely, and you know, one thing to remember is that an MAP policy is not a legally binding contract.

[03:33] It's a policy, it's a statement from your brand that outlines the lowest price your products can be advertised for.

[03:40] So it doesn't control the final sale price, but it sets a stage for how your product is presented to customers.

[03:45] So let's say a retailer decides to be sneaky and advertise my product below MAP.

[03:51] Oh yeah.

[03:52] What happens then?

[03:53] Yeah, so there are definitely consequences for breaking the rules.

[03:56] No.

[03:56] You know, those consequences they can range from losing out on discounts and favorable payment term go to having their account with your brand or your distributors suspended.

[04:08] It's all about incentivizing retailers to play by the rules and keep those prices consistent.

[04:13] So it protects your brand image and your authorized sellers' profits.

[04:16] Exactly, win, win.

[04:18] Okay, so going back to ARPs for a second.

[04:20] Yeah.

[04:21] How do brands actually decide who gets to be on that VIP list?

[04:26] It all comes down to what's important to your brand.

[04:29] You know, you might look at what kind of seller they are.

[04:32] Okay.

[04:33] Are they a big mass market retailer?

[04:34] Okay.

[04:35] Or more of a specialized boutique.

[04:37] Got it.

[04:38] You might also check out their online presence, their reputation for customer service, and how well their values align with your brand's overall message.

[04:47] So it's about finding the right sellers who are a good fit for your brand.

[04:50] Exactly.

[04:51] It's about making sure that anyone representing your brand out there in the digital world is on the same page and a holding your values.

[04:58] You mentioned earlier how tricky it can be to implement these ARPs, especially if a brand works with independent sales reps and distributors.

[05:05] Can you tell me more about those challenges?

[05:07] Yeah, so one of the biggest headaches is just keeping track of everyone who's selling your products.

[05:13] Okay.

[05:14] These independent reps and distributors in the mix, it can be like a giant game of hide and seek, trying to figure out exactly who's selling what and where.

[05:24] So you think you've got everything under control and then all of a sudden bam, another unauthorized seller pops up.

[05:29] That's a great way to put it.

[05:30] And this lack of visibility can make it super tough to actually enforce those MAP policies and ARP agreements.

[05:38] It's like trying to hit a moving target.

[05:40] Totally.

[05:41] And on top of that, I imagine it can be hard to get everyone on board with these new programs in the first place.

[05:47] Oh, for sure.

[05:48] Especially if those independent reps and distributors already have relationships with sellers who might not meet your brand's fancy new criteria.

[05:56] No, absolutely.

[05:57] Change can be tough for anyone, especially when it means shaking things up with established relationships and ways of doing business.

[06:03] So it sounds like building a strong brand online is a constant battle.

[06:09] What's the biggest takeaway for brand owners listening in today?

[06:12] I think the most important thing is that protecting your brand online isn't a one and done.

[06:16] Yeah.

[06:17] Kind of thing.

[06:18] It takes real strategy, consistent monitoring and often, you know, expert guidance.

[06:22] Absolutely.

[06:23] And remember those MAP policies and ARPs are policies, not legally binding contracts.

[06:30] So working with a lawyer who knows the ins and outs of brand protection is really important to make sure everything is set up the right way.

[06:36] Absolutely.

[06:37] Having that legal expertise can make a world of difference when you're creating, implementing and enforcing these policies.

[06:43] It's about protecting your company and your brand.

[06:45] Well said, for any brand owners out there who want to learn more about this stuff, you can find a ton of great resources at MAPTRAP.com.

[06:52] Yes.

[06:53] Or reach out to the experts directly at compliance at MAPTRAP.com.

[06:57] Those are fantastic resources for anyone looking to, you know, take control of their brand's online presence and protect their hard earned value.

[07:04] And that's a wrap for today's deep dive until next time, stay savvy and keep those brand protection strategies sharp.

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