Sales force outsourcing is not a new idea. It has been a dwelling practice in small and big businesses alike. Sales agents, distributors and resellers are the most common set ups in sales force outsourcing.
This industry however has been threatened with the rapid rise of BPO (Business Process Outsourcing) forcing Sales Force Outsourcing to be strategic alternative to indirect channels and sales agents.
Two Models Of Sales Force Outsourcing
There are two models of sales force outsourcing: sales agents & distributors / resellers and BPO solution of Sales Force Outsourcing.
A sales agent is someone who is self-employed and is the person who sells products in behalf of a company. Most often than not, the terms of payment is on commission basis though there are instances wherein a sales agent has basic salary. When delving into retail or manufacturing, sales agents usually carry multiple products and have established contacts. One may think that sales force outsourcing is a good option as solution. Yes it is a viable solution but this too has its own limitations.
The specialization of sales agents is based on a defined...