If you’re an entrepreneur who’s either planning to start a new company or running a company already, it’s essential that you select the right sales model. Your sales model is the method your business uses to sell its products to consumers, and since you can’t go very far without sales, you need a model that’s effective and fits your products well. As you’re figuring out which sales model to choose, here are four of the top options that you should keep in mind, along with why they work so well.
This is likely the first option that comes to mind when you think of sales models, as it’s the most traditional. With a retail sales model, you distribute your business’s products to one or more retailers. You can do this on your own or by working with a distributor that has its own retailer connections. Those retailers will then stock and sell your products.
Since retailers typically get a large number of customers every day, this sales model puts your products in front of quite a few people. This gives you the opportunity to improve your brand awareness and make a higher volume of sales.
Although the solution sales model came out in the late 80s, it’s truly a timeless concept that has always worked and always will. The gist of it is that you focus on selling solutions to problems that your customers have, instead of trying to sell them products.
What works so well with this model is that it brings you back to what’s important—how you can improve the customer’s life. Apple is one company that has been excellent at not only finding solutions, but focusing on that in their marketing. Take the iPod as an example. Consumers wanted a more convenient way to listen to music on the go. The iPod was a solution, and Apple marketed it as such.
The direct sales model is when you build a sales team full of people who go out and sell your products. They typically sell to family members, friends and acquaintances, along with hosting parties and other events focused on the products. Although their focus is to sell, they also educate people on your brand in the process.
The biggest benefit of this sales model is the level of interaction that occurs between your sales team and your customers. Instead of a customer passing by your product in a store they frequent, they’re talking to another person about it. And since you don’t need to worry about distributing your products to retailers, you get rid of the middleman, which can result in greater profits. Companies like NuSkin and similar businesses have successfully become profitable enough to start charities and make the world a better place.
The Sandler Selling System
The Sandler Selling System focuses heavily on communication between your sales team and your customers. First, your sales team will create a product pitch based on problems customers have had. The customer provides their feedback on the pitch, and your sales team adjusts it. This is a process, and the focus is fulfilling all the needs of your customers.
Although this system can be time-consuming to implement, it’s very effective at giving the customer what they want. It also creates a strong connection between your business and its customers, since it’s making them part of the product development process.
The great thing about sales models is that you don’t need to commit entirely to one. Try different models out to see which one works best for your business, and don’t be afraid to use multiple sales models to get optimum results.
Kara Masterson is a freelance writer from Utah. She enjoys Tennis and spending time with her family.