| Direct sales jobs often seen as the initial proving | | | | representatives. In most cases, these structures are |
| ground for young college graduates across industries | | | | above and beyond the direct sales force. They are |
| and businesses. Whether it is a product, a service, | | | | not employees of corporation they represent. Often |
| financial, pharmaceutical, industrial, consumer or | | | | they are local and geographically focused. In other |
| advertising, direct sales forces have traditionally been | | | | cases they target specifics markets or customers. |
| the revenue engines for business. But as technology, | | | | Dealers, distributors and resellers are usually not |
| demographics and buying behavior have changed over | | | | corporate organization men or women. They are more |
| the past decade, there are signs that the traditional | | | | entrepreneurial; customer focused and keep costs to a |
| direct sales force may be going the way of the | | | | minimum. |
| typewriter and carbon paper. | | | | Off-shoring. Whether you love or hate off-shoring, it is |
| Cost. Direct sales forces are costly. They require | | | | a fact of life for all types of businesses. Selling that |
| extensive management, systems and tools, training | | | | does not have to be face to face - whether is a |
| and often office infrastructure. Additionally, they are | | | | product, a service, aftermarket or upgrade can be |
| generally paid an amount of base pay plus benefits | | | | done remotely. In many cases, the combination of |
| before they get a penny of sales commission. In | | | | catalogs, television and the internet have made it |
| effect, they are usually on salary with sales | | | | possible to do must more selling remotely rather than |
| commission from 25-50% of their pay. But even if they | | | | face-to-face. This can be done with high levels of cost |
| do not sell a penny of product or service, they still get | | | | and quality control too. When was the last time a |
| their base pay, their benefits and all the expenses | | | | direct sales team was focused on reducing costs and |
| associated with them and their management has to be | | | | improving quality? |
| paid also. | | | | The reality. It is unlikely that the direct sales force will |
| Flexibility. Direct sales forces are inflexible. Usually they | | | | totally disappear from the corporate organization chart. |
| have a fixed organization structure tied either to an | | | | The largest customers often demand their own |
| account or a territory. Their management is an | | | | account executive to serve them. But increasing, it is |
| aggregation of the same. As is their executive | | | | possible the meet the needs of customers of all sizes |
| management. Any changes to this structure usually | | | | without a direct sales force by effectively using |
| happen annually, if then. The same holds true to | | | | combinations of dealers, distributors, resellers, off |
| compensation plans. Direct sales forces usually have | | | | shoring and utilizing the latest technology. In addition to |
| annual sales compensation plans. Yes, they do have | | | | increased sales and customer satisfaction, these |
| periodic promotions, incentives and "kickers". But these | | | | distribution alternatives serve to reduce sales and |
| are almost always incremental (on top of) the annual | | | | overhead expenses plus increase the level of flexibility |
| sales incentive plans. | | | | - all important steps toward being more competitive |
| Resellers. Most companies have some level of dealers, | | | | and profitable. |
| distributors, wholesalers or manufacturer's | | | | |