Choosing the right sales model for your business is crucial for its success and growth. The sales model determines how you will sell your products and services, how much you will charge, and what kind of customers you will target. There are several different sales models to choose from, each with its own benefits and challenges.
One popular sales model is direct sales, where the company sells directly to customers through its own sales force, either in person or over the phone. Direct sales allow for more control over the sale process and the ability to build personal relationships with customers. However, direct sales can also be time-consuming and costly to maintain.
Another popular sales model is indirect sales, where the company uses intermediaries, such as distributors or retailers, to sell its products or services to customers. This model can help reach a wider customer base and can reduce the cost and time required for selling. However, it can also reduce control over the sales process and make it harder to build relationships with customers.
The sales model you choose will depend on several factors, including the type of products or services you offer, your target customer base, and your overall business goals. It’s important to carefully consider each option and weigh the benefits and challenges before making a decision. Remember that the right sales model can greatly impact the success of your business, so it’s worth taking the time to choose wisely.
I chose the direct sales model as a former fitness business owner because it aligned with my business model and level of service. As you read below I had a B2C business. Developing relationships and strengthening bodies were critical to growing our business, so this model was perfect. Some business models are transactional like Amazon and some are relationship driven, ours was 100% about the relationship so it was easy to identify which one would work for us.
Here are the top 3 sales models which exist today:
- Direct Sales: selling directly to customers through the company’s own sales force, either in person or over the phone. This one worked best for my fitness company.
- Indirect Sales: Using intermediaries, such as distributors or retailers, to sell the company’s products or services to customers.
- Online Sales: Selling products or services through an e-commerce platform, such as a company website or a marketplace like Amazon.
Here is a list of the 5 kinds of businesses that use the “direct sales” model:
- Multi-level Marketing Companies
- Door-to-Door Sales
- B2C Companies
- High Ticket Items
- Customized Products
Here is a list of the 5 kinds of businesses that use the “indirect sales” model:
- Service Providers
- Wholesale Companies
- Consumer Goods Companies
- B2B Companies
If you have a business, hopefully, you have already figured out what model works for you. If you’re brand new to the business and need some direction then this could eliminate the hassle of figuring it out on your own. Simply look at what business you have and then pick the model that works best, don’t recreate the wheel.
Now that you have the right model, it's time to sell and help people.