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1 definition by Stephen2

 
1.
A velvet hammer is a marketing tactic; a scheme wherein your customer gets his customers or suppliers to pay for the product you are selling.
Imagine that you are a publisher of specialty magazines. Your customers are large building contractors. You are attempting to sell a new prospect, United Residential Homes, the idea that they should publish a monthly magazine about their company. This will not cost United anything. You will sell advertising in the magazine to United's suppliers: plumbers, electricians, painters, interior decorators, etc. However, you expect United to call these suppliers and lean on them to cooperate with your salesmen. This is called the "velvet hammer."
by Stephen2 December 10, 2007