A prime consideration for every enterprise, even not-for-profits and charities, is what their sales or distribution channels are or will be. These are channels that you sell into and can take years to develop.
If you can not acquire customers and clients in a cost-effective manner, your company is doomed. Sales channels can help you do that. They are a ‘Magic Marketing Button, MMB’—every time you find a way to effectively ‘ping’ a channel, new clients and customers appear, as if by magic.
Once you have developed these effective sales channels, you can also look for other products and services that you can resell or distribute through them—which will raise your margins since the cost to add products and services produced by others to your sales channels is usually small and quite often zero. You may also be able to thereby create new recurring revenue streams for your enterprise.
By bundling other company’s products and services with your own, it may also be possible to co-brand or co-promote with them—they can promote your enterprise to their clients, customers and suppliers and you can do likewise, opening up whole new markets for both.
If you can not acquire customers and clients in a cost-effective manner, your company is doomed. Sales channels can help you do that. They are a ‘Magic Marketing Button, MMB’—every time you find a way to effectively ‘ping’ a channel, new clients and customers appear, as if by magic.
Once you have developed these effective sales channels, you can also look for other products and services that you can resell or distribute through them—which will raise your margins since the cost to add products and services produced by others to your sales channels is usually small and quite often zero. You may also be able to thereby create new recurring revenue streams for your enterprise.
By bundling other company’s products and services with your own, it may also be possible to co-brand or co-promote with them—they can promote your enterprise to their clients, customers and suppliers and you can do likewise, opening up whole new markets for both.
“Craig Miguelez met up with Jack MacGregor to discuss Craig’s new auto feed system for major bulletin board and classified ad services. Craig realized at once that Jack had developed an amazing sales channel over the last four years—he does professional photography for REALTORS and has more than 1,200 clients. Craig’s pitch to Jack was simple: ‘You resell my auto feed system through your sales and distribution channel to your clients for $30 and you keep $10. My system will make sure that their listings are always up to date on these bulletin board and classified ad services, you’ll make $12,000 per month of recurring revenue with almost no marginal cost and I’ll be able to acquire 1,200 new clients in one fell swoop.’”
by Prof Bruce April 11, 2010