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Indirect Selling
This is selling where you don't take any part in. This is self explanatory and someone sells on your behalf. Indirect selling again is the total opposite of Direct Selling. The market that you are in may use a number of intermediaries to make sales.
The use of an Agent
Indirect Selling can be characterised by a firm using an agent to make sales on their behalf. In this case agents are seen as your business partners and not as your employees. Agents obviously work for a commission. This reminds me of affiliate marketing. Before you start business with your agents, you both need to sign an agreement and settle the amount in commissions the agent will be getting for each sale.
The agent in this scenario doesn't buy the product from you. What they do is go and get you customers and when they do you invoice the customers directly.
The main disadvantage of Indirect selling is that it's very difficult for you to control the activities of agents representing your business. Some agents are irresponsible and might end up bringing your business into disrepute.
This is the same scenario with affiliate marketing when some affiliates do not follow the agreement set by the merchant. They do their own thing and misrepresent the merchant.
The use of Distributors and Wholesalers
Distributors and Wholesalers in most cases act as your customers. What they do is buy the product from you at a low price and they go and sell at a higher price to get profits.
This way of Indirect Selling avoids some costs associated with direct selling because you are mass producing and supplying to only a few wholesalers and distributors.
Indirect Selling just like Direct Selling has its advantages and disadvantages.
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