Different Sales Strategies for your Business
Shuki Lehavi is the founder & CEO of Gumiyo (www.gumiyo.com). In this video he discusses different sales strategies that your businesses can employ.
- Sell directly
- Affiliate sales
- Value-added re-sellers
- Private labels
- Consider your budget
- Protect intellectual property
- What type of relationship to do you want to create with the customer?
- Plan for change
There are several sales strategies you can take for your product and sometimes you even take a combination of them. Well first of all, you have to have a product or a technology. And I will not talk about now about providing the service or about just a product.
The first thing you can do with your product is sell it direct, you know your client audience, you will create a sales team or you will create a direct marketing strategy in which you will leverage a seal or seam to reach this target audience. You will create a conversion the marketing materials and you’re going out there and sell the product. You will have the direct relationship with you’re clients, you will service direct of you’re clients and the clients will pay you.
The next is affiliate. Affiliates provide you with access to an existing customer base and they usually do it through forms of references, they will include links to your product and there communications to there existing customer based and they’ll usually will do that for some sort of a fee.
The next are Resellers. Resellers stock up on your product, they get a territory or they get a segment of the market and they go out there and they make the commitment to sell you a product in the market.
A level above that is typically the value-added resellers. It will take your product bundling to existing product that might be in the market, it might be selling in the market in order to generate more value for this existing product or in order to—to make those existing product more sexy with your new product and by that the value-added reseller is actually going to sell an integrated product in the market.
The last ones are private labels. Those will take your product and bundle it inside of there existing product and they’ll sell it as they’re own product without much of mentioning for you. The carburetor inside of every vehicle is a good example of a private label OEM example or a website that will allow someone else to put the logo on top of it and remove any mentioning to the original website then is a private label.
I think the biggest consideration between those different strategies are number one, how much money can you spend, okay in order to get to market. The lather channels like value-added resellers, affiliate already have relationship with the customer base out and, you know, you don’t need to spend a lot of marketing dollars in order to get there, so they can be a very good strategy when you’re starting your business. However, you’re depended on them, if they don’t sell there product and your bundle, you’re not going to sell yours which means you might slow down a little bit on sales and by then maybe a direct marketing strategy is better.
The second is how do you protect and retain you’re IP. The bundle product or is a product that you then delegate to others you might not be able to have that much control.
And the last thing is what type of relationship do you want to create with the customer. If at the end of the day you want to have direct relationship with the customer or you want to have a direct dialogue with the customer, not necessarily with the reseller, then you might choose a direct strategy.
At the end of the day, the combination of figuring out your product in the best channels for your product can change and that’s the most important lesson to take home. Plan that and know that you can switch and change, it doesn’t take a day to switch and change, it takes time to train your different channels and to devise it from strategy but a combination of anyone of these five different sales channels could be very beneficial for the company.