Which Sales Channel is the Best?
Like everything else in this world, there are often multiple choices that can be made. Selecting a sales channel is no different. I have listed below the more popular sales channels and a very high level advantage and disadvantage of each.
Channel Chief Advantage Chief Disadvantage
Direct Sales Force Account Control Can be expensive
If you have complex products or services or your offerings required some “hand holding” then this might be one of your selections
Distribution/Resellers Extended sales force No account control
Want an “instant” sales team with proven knowledge and potential customer base, then consider local or regional or national distributor/resellers or ISVs
Internet Vast reach Relationship building
Have limited resource (people and funds) then you can look and act like the corporate giants with reasonable investments
Independent Representatives Know skills/cost No account control
Looking for highly skilled people with focus on your solutions with minimum investment?
Telemarketing Leads/Leads Can be expensive
Leads are your primary focus or generating additional business within your current customer base and you want to argument the direct sales organization
Trade Shows/events Leads/Awareness Costly/events
Opportunities for “gathering” leads and /or creating awareness about a new product/technology or service
Social Media Vast reach/inexpensive Currently an art vs. science
Need to build awareness or creditability or gather feedback about people’s opinion regarding your enterprise?
The key takeaways are the following:
1- There are many choices for sales distribution/channels. In most cases you will use more than one to meet your objectives and goals.
2- Mix of channels is probably the most important decision. You need to consider your current environment, your offerings, your market position and what resource you have in deciding on the appropriate mix.
3- After you have selected the channels and the correct mix make sure you are funded to implement the programs to support and maintain the channels
RHL 7/20/10
