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An External Sales Force

By:   •  Term Paper  •  438 Words  •  March 8, 2015  •  748 Views

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An External Sales Force

When a company becomes a certain size they must make the decision between continuing an internal sales force and using an external force. There are pros and cons to each choice and they must be weighed appropriately. In deciding what type of force to use it is important to understand your company, your customer base, and where your company is headed.

Using an internal source can be both beneficial, but also more costly. Susan Jones has developed a reputation for caring about the quality of their products and their relationship with their customers. Using an internal sales force can help reinforce this reputation that has already been established. Other advantages of using an internal sales force includes easier transitioning of responsibilities, easier training, and the ability to closely monitor representatives. There are also disadvantages to using an internal sales force, though. An internal sales force will cost more and you have to spend time hiring, training, and paying benefits to employees.

An external sales force also has several advantages and disadvantages. One advantage of an external sales force is the lower costs. Most external sales agents are only paid when they make a sale reducing overall costs. A sales agent will also reduce the amount of management and oversight required. Sales agents will also most likely have a client base already built reducing the delay in sales. There are some disadvantages to hiring an external sales force. With an external agent you will have less control on the sales process, they can compromise the company’s reputation, and they may have other clients taking

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