B. Use a “Middleman”
In an indirect sale, someone sells your product or service for you to the end customer. For example, you may sell through someone else’s store, a marketplace like Amazon, or to a distributor.
| ADVANTAGES | DISADVANTAGES |
| The strength of this strategy is that you can often reach a greater number of customers faster than you can alone. Also, a “middleman” may take care of some of the logistical steps for you (shipping, billing, etc.). | The downside is that you may make less money per sale, since the middleman will pay you less in order to make a profit for himself. |
If you decide to use a middleman, it’s important to recognize that this person or business becomes one of your customers, too. In addition to selling him your product or service for resale, you also are providing the middleman a way to make a profit.
Because higher sales don’t always result in higher profits for your business, you need to evaluate your business model carefully to understand how to make the most money while serving customers well.
Complete the assignment on the “Distribution” Lesson page to move on.