4 Sales Channels To Get More Sales

A very commonly overlooked management tip for adding sales to your business balance sheet is by using additional sales channels. Too many companies attempt to do everything themselves instead of reaching out to the businesses around them for growth opportunities.

There are four good sales channels that companies everywhere, big and small, use to grow the size of their sales force. Hiring people is not always the best method to increase the size of your sales force.

Direct Sales

Direct sales provides the majority of sales for most businesses. They provide the most commonly accepted method of growing your business. If you are in need of more sales, it makes sense to hire another sales person right? There's little doubt that having a dedicated sales force is very valuable, however it's not the only way to spread the word.

Distributors and Affiliates

One of the most commonly used sales channels, outside of direct sales, is distributor and representative networks. Distributors and reps bring your product or service offering to the people in their networks in exchange for a sales commission. Distributors purchase equipment from you at a reduced price and resell. Representatives , also known as affiliates or factory agents, generally just do the selling and take a sales commission.

One of the really nice things about using distributors and affiliates is that they only get paid when they make a sale. A downsides of having employees is that you need to pay them even when you have a bad month and your sales are down. With distributors and affiliate programs 100% of the sales cost comes out of the sales margin. In exchange they have an opportunity to earn very large commissions if they can land some repeat customers.

The secret to using distributor and affiliate channels successfully is to make it as easy as possible for them to succeed. It is really quite simple. If you are easy to work with then people do. If you are hard to work with then they look for ways to spend less time dealing with you and work with someone else instead. Be diligent in setting your distributors up in a winning position so they will continue to help you over the long term. Remember that every dollar they make is a sale you would not have made alone.

There are many advantages to using distributors and affiliates to extend your sales reach. Every business leader should carefully consider whether adding this sales channel is right for them.

Value Added Resellers

Value added resellers are similar to distributors and affiliates, but they bring something extra to the mix. Whereas a distributor simply takes your product and offers it to their customers, a value added reseller starts with your product, adds their own enhancements to increase its value, and then offers it to their customer base.

As an example lets say you sell barbeques. You make a great barbeques, and are very successful. Customers come to your store, pick one out, and buy it. Now suppose a business sets up a shop across the road that assembles barbeques for people and add custom parts like natural gas attachments, temperature sensors and lights for cooking at night. This would represent a great value added reseller opportunity. They provide additional components that many people who buy your barbeques want.

What you do with this opportunity is up to you. When people ask about other services and additional uses you can simply refer them to the people across the road, or you can set up a special arrangement with the company across the road. You could sell them your product at a discount to resell to their customers at list price. What happens next? Before they start putting together any kind of solution, they start recommending your products to their customers because there's something in it for them. They take your product, make the total package even more attractive, and are now a value added reseller.

Value added resellers are extremely effective at targeting your offering to particular niche markets. Different types of customers may want to use your products in unique and different ways, and value added resellers are positioned to add the things that their special group of customers want. Having multiple value added resellers addressing the particular needs of different customer groups can expand the attractiveness of your business offering to many new people.

Joint Ventures

A joint venture is basically when two companies decide to offer whatever it is they have to each other's customer base. You can form a joint venture with anyone who either has a market that might be interested in what you have, or a product or service that your customers might like.

The most successful joint ventures occur when the two partners have complementary businesses. If you sell nuts and they sell bolts it's a match made in heaven. All you do is let your customers know that your partner has something they might be interested in, and they do the same for you. In many cases no money even needs to change hands. The simple act of promoting each other brings value to you both. You both get new customers you would not have been able to reach on your own.

Whenever two different companies have things that would appeal to a similar group of people there is an opportunity for a joint venture. The products and services don't necessarily need to be complementary. The deciding factor is that a high percentage of customers would have an interest in both things.

Many successful business people feel joint ventures are the most powerful sales channel there is. It is unfortunate that it is also one of the most over-looked.

Summary

There are a lot of ways to increase sales without hiring more staff. The four groups we've talked about here all represent high-potential sales channels you can use to increase your sales.

The main management tip is to be creative and ensure your partners also see the benefits to build a win-win relationship.
Daryl Cowie has shared management tips with 1000s of people in over 30 countries around the world. His mission is to help you and your company turn business opportunities into business realities. Sign up for his free business management home study course at http://FreeManagementTips.com