Indirect Sales

AAA

DEFINITION of 'Indirect Sales'

The sale of a good or service by a third-party, such as a partner or affiliate, rather than a company's personnel. Indirect sales may be used in conjunction with a company's direct sales efforts or may be used in lieu of hiring. Indirect sales are often made through resellers, such as specialty stores and big box retailers.

INVESTOPEDIA EXPLAINS 'Indirect Sales'

Indirect sales can allow a company to increase sales quickly without having to hire more sales personnel. In some cases, however, indirect sales may lead to reduced control of the brand message and poorer customer service because the company cannot manage indirect sales teams easily. Companies often resort to indirect sales when the demand for the product is outpacing the ability of the company to hire competent sales people, or when the price of the product is too low to justify a large sales force.

RELATED TERMS
  1. Sales Lead

    A prospective consumer of a product or service that is created ...
  2. Always Be Closing - ABC

    Retail jargon used to describe a sales strategy in which a salesperson ...
  3. Organic Sales

    The term "organic sales" refers to revenue generated from within ...
  4. Business Model

    The plan implemented by a company to generate revenue and make ...
  5. Inorganic Growth

    A growth in the operations of a business that arises from mergers ...
  6. Big Data

    The growth in the volume of structured and unstructured data, ...
Related Articles
  1. Fundamental Analysis

    Great Expectations: Forecasting Sales Growth

    Predicting sales growth can be something of a black art, unless you ask the right questions.
  2. Fundamental Analysis

    Measuring Company Efficiency

    Three useful indicators for measuring a retail company's efficiency are its inventory turnaround times, its receivables and its collection period.
  3. Markets

    Is Growth Always A Good Thing?

    Getting big quickly looks good, but companies can get into trouble when they do it too fast. Find out how to spot this trouble.
  4. Investing

    Earnings: Quality Means Everything

    It's quantity that generates all the hype, but there are more meaningful factors that gauge true performance.
  5. Forex Education

    Understanding The Income Statement

    Learn how to use revenue and expenses, among other factors, to break down and analyze a company.
  6. Fundamental Analysis

    Google Ads Vs. Facebook Ads

    Universal access to the internet through smartphones, tablets and computers has driven the success of numerous companies. Most notably, Google and Facebook have witnessed staggering growth as ...
  7. Entrepreneurship

    How does a customer base dictate goodwill?

    Find out how a customer base dictates the value of the goodwill by providing a ready market for its products and spreading the word about the firm.
  8. Entrepreneurship

    How do companies like ClickBank help websites make money?

    Find out how sites such as ClickBank help websites make money by offering the opportunity for vendors and affiliates to promote websites and products.
  9. Personal Finance

    How Shazam Makes Money

    Prior to universal access to digital technology, identifying music in restaurants, bars, or stores was difficult to nearly impossible. Founded in 2000, Shazam provided a readily-available solution ...
  10. Personal Finance

    For a company, is it more important to lower costs or increase revenue?

    Examine the question of whether a company's desire for increased profitability is better served by focusing on cutting costs or on increasing revenue.

You May Also Like

Hot Definitions
  1. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  2. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  3. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  4. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  5. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  6. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
Trading Center