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. Quick Response (QR) Code

    A type of bar code which can be read by a digital device, and ...
RELATED FAQS
  1. What should be included in a restaurant business model?

    The most important elements of a restaurant business model include the restaurant's unique value proposition, menu choices, ... Read Full Answer >>
  2. What do you need to know to create a business model?

    A business model lays out the idea for a business, along with the step-by-step plan for making the business profitable. To ... Read Full Answer >>
  3. What level of return on assets should an investor look for in the insurance sector?

    Marketing plays an important role to a company in the utilities sector. Many people fail to understand why utility companies ... Read Full Answer >>
  4. How does the always be closing (ABC) strategy benefit a salesperson's sales funnel?

    It is good practice in sales to always be closing, because it's common for a salesperson's sales funnel to be leaky. When ... Read Full Answer >>
  5. What factors should a company consider when creating a marketing budget?

    As organizations grow and new entrants to the market appear, companies must continuously stay relevant in consumers' minds. ... Read Full Answer >>
  6. What are the advantages of hiring a third-party marketing company?

    Hiring a third-party marketing company's services offers a number of advantages for businesses - primarily savings, since ... Read Full Answer >>
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. Personal Finance

    The Top 6 Companies Owned By Google

    Google owns an incredible number of companies. These are its top six acquisitions.
  7. Stock Analysis

    Costco, Target or Walmart: Which is the Best Bet?

    These three retailers have all been long-term winners. It that likely to continue? If so, which is the best bet?
  8. Professionals

    Why Advisors Should Focus on Relationships

    Successful financial advisors share a secret: It's about the people, not the numbers.
  9. Personal Finance

    The Top 11 Companies Owned By Facebook

    These 11 acquisitions show how big, and how rich, Facebook has become.
  10. Stock Analysis

    Is There Any Upside Left in Costco?

    Costco's stock has performed exceptionally well over the past five years, but does it need a breather?

You May Also Like

Hot Definitions
  1. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  2. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  3. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  4. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
  5. Rule Of 70

    A way to estimate the number of years it takes for a certain variable to double. The rule of 70 states that in order to estimate ...
  6. Risk Premium

    The return in excess of the risk-free rate of return that an investment is expected to yield. An asset's risk premium is ...
Trading Center