Direct sales vs Channel Sales

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Two thirds of all computing sales in the world are not direct sales like Apple; instead, they are ‘Channel Sales’ or ‘Indirect Sales’. Microsoft’s products are sold through ‘Channel Sales’ because Microsoft would have to become a retail operation in order to achieve the same level of global sales.

Both Microsoft and Apple use Channel Sales because it makes sense. Both companies use Channel Sales in different ways.

Channel Sales is like outsourcing the costs of having your own far-reaching sales operations, whilst still retaining an excellent portion of the sales profits.

Channel Sales doesn’t just mean shipping your products off to a third party and hoping for the best.

Finding the right strategic partners is of course an essential part of using Channel Sales. Finding the right Channel Sales partner is a very important process when making the decision to expand your business through indirect sales.

Your Channel Sales partners are motivated by a need to make profit for all concerned. The more sales they make, the more they earn. Whereas your Channel Sales partner is an expert in making sales, or if you prefer generating sales leads.

Using Channel Sales leaves you the time to develop your products instead of spending time and money on making sales. This doesn’t mean that you shouldn’t have your own sales activities or that you should rely entirely on indirect sales, but the effectiveness of Channel Sales cannot be ignored.

The main benefit of working with a Channel Sales provider – a reseller, is that you can rapidly expand your business without having to rapidly expand your entire business operation.

Overall, it doesn’t have to be an either/or decision; companies can employ channel sales partners in order to get the most expansive sales growth.