Thursday, October 31, 2013

What is the Indirect Sales Channel?

There is an assumption that all sales take place through a directly employed sales team, and/or, more recently, through the web. The problem with having a Direct Sales team is that they are notoriously expensive to run. In IT Enterprise Software Sales, for example, many companies use a number of $420K pa, as the standard loaded cost of a rep. Having global coverage with such an overhead is, to say the least, not something you can do instantly. On the other hand, "the web" gives you global coverage at VERY low cost, which is great if you have products that sell themselves. Put them on Amazon and watch the money flow? The trouble is that a lot of the time you need "people" as part of the mix - consultants, integrators and business people who know customers needs - Sales people, Resellers, etc.





Many companies have a diverse mix of "Channels". The diagram above gives a simple view of how a typical Sales Ecosystem might work. The right and balanced approach to your overall sales strategy is vital, not only to saving costs, but to increasing sales - and reach - and supportability. The area to the left has been the focus, because it has been the most tightly controlled. However, the entire ecosystem to the right is clearly of a scale that few companies can ever reach. The goal of Channel Sales Automation is to provide that framework and realize that potential. 
The examples, listed, of companies that have leveraged the channel to create their empires are all classic tech companies, but this model applies to almost any business type, especially when the product needs "people" as part of the process.

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