Leveraging Indirect Sales for Your Business: Whys and Hows

Let us take a closer look at why it is so and how you can best leveraging indirect sales for your business with this channel tool benefits

Updated on February 2, 2024
Leveraging Indirect Sales for Your Business: Whys and Hows

Indirect sales are deals that happen not directly through the company’s staff but through other channels (third-party websites, social media, affiliate networks, and so on). According to the World Trade Organization, it accounts for as much as 75 percent of global trade. Most extensive and small businesses prefer indirect sales, especially when entering new markets. It is essential news for software companies and startups in particular. Let us take a closer look at why it is so and how you can best leveraging indirect sales for your business with this channel tool benefits.

1 It allows you to tap into existing customer bases

Building up its customer base is one of the most significant challenges a software company faces. It requires time and effort to market your product or service to those who may be interested in it and win their trust. Meanwhile, software startups have to grow fast to stay afloat. If you cannot reach a specific growth tempo, you are losing money faster than you are making it.

By selling your product through established third parties, you bypass this stage. You use their existing goodwill with their audiences and tap into markets that are otherwise unattainable for you. For example, take a highly competitive market like that of VPN service providers. By telling about the advantages of service on your website, you are unlikely to achieve significant results – how many people will visit it, anyway?

But if you get in touch with several high-profile and trustworthy tech websites, persuade their authors of the value of your offer, and get them to review your product, it is another thing entirely. Just read this ExpressVPN review and say you are not convinced to try it. The review, published on an independent website, honestly lists advantages and drawbacks and treats the reader as an intelligent adult. You can achieve the same results by offering a high-quality product, dealing with reliable resources, and being transparent.

2 Leveraging Indirect Sales for Your Business: Speeds up your expansion and cuts your costs

When you work with pre-existing channels, it dramatically decreases the time costs of establishing your networks. Your job is to find partners with audiences likely to be interested in your product and make sure they understand your sector, online risks, and where your offer fits into the existing paradigm. Also, make sure there is no conflict of interest.

Usually, it is better to avoid dealing with an outlet with a client who has a similar product or service. If you manage to correlate the audience of your partner with the target audience of your product/service, you can achieve some truly explosive growth. Let us take a closer look at why it is so and how you can best leverage indirect sales for your business with this channel tool benefits.

3 It helps you focus on your core activities

Software companies, especially at the startup stage, are often relatively small teams, and most of their members are primarily concerned with developing and improving the product. By leveraging the existing websites’ audiences through which you promote your software, you can retain this situation without siphoning a significant portion of your time and attention towards marketing.

You may perceive it as outsourcing sales while fully concentrating on delivering as good a product as possible. However, you still have to receive feedback from your partner; otherwise, you risk steering away from what your customers want and need. As a result, you can bring your product to many more markets than otherwise would be possible with a small team.

4 Leveraging Indirect Sales for Your Business: Opens a lot of possibilities for experimentation

If you want to try out a new marketing approach. You do not have to hire in-house experts and build another marketing campaign from scratch. Whatever your idea is. You can usually find a suitable partner ready to get it off the ground using their existing know-how.

The same goes for testing new products or services. Suppose you have an early version of a software tool. Or service and want to test it on a specific audience. It is much easier to do it with the help of a website with a relevant audience. Then try and single out this demographic in some other way. Let us take a closer look at why it is so and how you can best leverage indirect sales for your business with this channel tool benefits.

5 It has lower maintenance

By partnering with existing channels, you can achieve an outreach that far exceeds your current financial capabilities. As you do not own them, you do not have to worry about upkeep costs or rolling out regular updates. At the same time, the original setup may take quite a bit of your attention. After that, you usually may stop worrying about it altogether.

6 It offers easy access to new markets

You may think that with how globalized the world is today. You do not have to worry about geographical limitations if you do not sell physical goods. However, in reality, things are a bit more complicated. While theoretically, we do live in a global marketplace.

So, nothing precludes consumers from the most remote locations from buying your software. Using existing channels can significantly improve your chances of successfully entering a new market. For example, Citibank claims that up to 90 percent of its customers in China sign up through WeChat, a widely popular Chinese multi-purpose social media platform.

7 Leveraging Indirect Sales Benefits Channel for Your Business: Makes it easier for customers to find your products

Your outreach will be if you sell your product only through your website. No matter how good you are at SEO and marketing. There are probably many other similar products all around. When you use a network of respectful websites to help you promote it. The likelihood of a consumer looking for a similar product stumbling upon your offer is much higher.

Of course, indirect sales have drawbacks – but when used properly, their advantages far outweigh them, especially in the software market.

The Hows: Implementing an Indirect Sales Strategy

Identify the Right Partners Leveraging Indirect Sales

The success of your indirect sales strategy heavily relies on the partners you choose. Look for partners with a solid market presence, a complementary product portfolio, and shared values. Conduct thorough due diligence to ensure they can effectively represent and sell your products or services.

Develop a Strong Partnership Framework

Clear communication, mutual goals, and aligned incentives are the foundation of a successful partnership. Establish clear terms of engagement, support structures, training programs, and performance incentives to motivate and empower your partners.

Invest in Partner Training and Support Leveraging Indirect Sales

Providing your partners with the necessary product knowledge, sales tools, and marketing materials is crucial for their success. Regular training sessions, easy access to sales support, and ongoing communication can enhance your partners’ ability to sell effectively.

Monitor and Optimize Performance

Implement a system to track sales performance, gather feedback, and identify areas for improvement. Regular reviews with your partners can help refine strategies, address challenges, and optimize the sales process for better results.

Foster Strong Relationships

Building strong, personal relationships with indirect sales partners can increase loyalty and commitment. Recognize and reward top performers and create opportunities for open dialogue and collaboration.

Conclusion Leveraging Indirect Sales

Leveraging indirect sales channels offers a pathway to expand your business reach, reduce costs, and adapt quickly to market changes. By carefully selecting the right partners, establishing a supportive framework, and fostering strong relationships, businesses can unlock the full potential of indirect sales to drive growth and success. Remember, the key to leveraging indirect sales effectively lies in strategic planning, thorough execution, and ongoing optimization. With the right approach, indirect sales can become a powerful component of your overall sales strategy, propelling your business to new heights.