As ambitious tech leaders look beyond North America and Europe for new revenue streams, Latin America (LATAM) stands out as a dynamic market full of potential. According to Statista, the region’s cybersecurity revenue could grow by 7.87% (CAGR 2025-2029). Yet many companies fail to gain traction. Why?  Often, it comes down to underestimating LATAM’s complexities—such as risk management, unique tariff structures, and diverse cultural nuances. When these challenges go unaddressed, sales efforts stall and revenue goals slip out of reach. Below are the most common reasons tech companies struggle in LATAM—and what you can do to avoid them.

1. Misunderstanding End-User Risk

Many tech vendors choose to enter the LATAM market solely through channel partners. While partnering can reduce go-to-market (GTM) costs, end customers have become increasingly sophisticated in their vendor evaluations. In global 2000 (G2K) companies operating in Latin America, procurement teams use rigorous risk assessment methods. Vendors without local offices, a legal entity in-country, and support in the local language are deemed high-risk—regardless of whether their channel partners check those boxes. This can stall or kill multi-million-dollar deals, especially among large, risk-averse enterprise customers. 

           For example, a G2K financial institution overruled its technical team’s recommendation to adopt a new solution, opting instead to stick with the incumbent tool. The procurement team concluded that—even with local partner representation—the risk of working with a new, foreign vendor was too high for a mission-critical, multi-million-dollar project.

2. Inaccurate Revenue Expectations

Sales executives in the U.S. and worldwide often expect LATAM sales reps to meet the same targets as their counterparts in North America. However, most Latin American countries (except Mexico, due to NAFTA/USMCA) do not share free trade agreements with the U.S. Many impose high import tariffs that can increase the final end-user price by as much as 80%. This burden forces the LATAM sales team to compensate for a much higher total cost. For instance, if your U.S. reps must hit $1 million in quarterly revenue, your LATAM counterparts might need to sell $1.8 million worth of licenses to match the equivalent net figure. These misaligned targets often lead to frustration and missed goals.

3. Hiring Inadequate Talent

Successfully expanding into multiple countries requires a nuanced blend of knowledge—cultural awareness, legal and fiscal expertise, local sales methodologies, channel relationships, and fluency in both language and business practices. Many tech firms make the mistake of assigning LATAM to a U.S.-based leader who simply hires a bilingual salesperson. This approach quickly hits roadblocks: the new hire may lack the multifaceted skill set to navigate the region, and the U.S. leader may have neither the data nor the background to diagnose problems or fine-tune performance. The result is a frustrated organization wondering why growth has stalled. The key takeaway is to build a team with a track record of expanding into Latin America from ground up —mere bilingual ability often isn’t enough to drive results in LATAM.

Final Thoughts

 If your company finds these challenges all too familiar—or if you’re preparing to expand into Latin America—you don’t have to go it alone. I specialize in helping tech organizations establish, operate, and scale their businesses in LATAM. Our team combines deep local expertise with proven sales, channel, and legal strategies to jumpstart growth and reduce risk.  By anticipating the hidden pitfalls of LATAM expansion, your organization can begin to chart a growth path. Remember: success in LATAM isn’t accidental—it’s strategic.

Ready to expand in LATAM without costly missteps? [Schedule an appointment here] to discuss how we can help you succeed in Latin America.

Sources:

Statista: Cybersecurity Outlook in LATAM