* An enhanced sales function.
This approach can replace or enhance your current sales function. In some cases it is appropriate to disband an existing direct sales force and commit fully to an indirect or outsourced sales strategy. In this instance you would have a sales manager working directly for you or hire a sales management agency to recruit and manage your indirect sales force. In other instances a company may choose to retain all or part of its direct sales force to certain markets, or manage certain accounts, and outsource other pieces. Despite the many virtues of outsourcing there are some caveats.
First, you've got to pick the right ones. Independent re-sellers need to be selling products and services that line up with your offerings. They also need to be selling to the right customers, and the right players within those companies. (Example: You don't want a re-seller that makes its living calling on purchasing agents if engineers or CFOs are responsible for making the ultimate buying decision for your offering.) Taking the time to find the right reps is more productive and cost efficient than taking the first that express an interest. You don't want to spend the recruiting and training resources twice if you don't have to.
Secondly, treat them well and they sell. Simply put, re-sellers follow the money. If your commission rates are on the low end of industry average, you give no added incentive for meeting quota, or you just make doing Business difficult, an average agent will spend his time selling other products. If your commission rates are good, you offer attractive incentives and you make their lives easy, you'll have agents that turn over every stone in effort to sell your products.
Three other major factors in using an independent sales force are: Support, support, and support. A good rep will know a lot about your product, they will also make sure they know what they don't know. When faced with a question from a customer for which they don't know the answer, a good sales agent will say, "I don't know, but will have you the answer tomorrow." It is your job to make sure that you provide them with assistance in finding such answers in a timely fashion. You should also make it a practice to share these questions and answers with the entire sales channel, because questions usually arise in multiple places.
Lastly, outsourcing sales is a commitment. You need to realize that it is going to take some time to establish the sales channel. Usually the same year to eighteen months it takes to get a direct sales person up to speed. With this approach, however, you can have twenty to forty individuals up and selling for you, rather than a handful. Also, with regard to commitment, you cannot vacillate between direct and indirect selling. If the independent channel feels you will be selling direct again soon, they will slow their efforts to a crawl. Plus, word travels fast, if you went from indirect selling, back to direct, agents will be hesitant to engage you if you decide to go back to the indirect approach.
Outsourcing, or indirect selling has been going on for ages. As companies become more conscious of their bottom lines and to sticking to their core competencies we are seeing a renewed vigor in this approach.
If you're a small or medium sized company that is looking to grow sales and you're in one of the many industries that lends itself to outsourcing the sales function, it is surely worth investigate. Gaetan Giannini is a partner in Giannini O'Connor LLC, a full-service marketing/PR firm whose goal is to increase clients' sales through imagin
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