And their value proposition, as even they realized later, was pretty unclear.

If you think about it, we didn't talk about how much to charge.

VARs might do video editing systems that are turnkey.

This is just the gross profit.

In a physical channel, a direct sales force are sales people that work for you directly and typically sell directly to the end user.

In other words, how are we going to make money?

So, you're selling costs were embedded here, this was the commission or direct sales costs or whatever you were paying your direct sales people and you made 37 selling directly.

Sell, sell, sell.

Looks like he had backtoback meetings with the sales team.

How many can you distribution channel actually sell?

So let's take a look at a direct sales example.

We should be charging for it from day 1, or Wait a minute.

This is the boat that that lady was paddling around in, and this artisan makes the boat and the paddles and sells directly to the people who need the boat and the paddles.

Cut out the middleman. Run our own game.

Web Telesales, almost no value added. Retail maybe adds a little support.

But this is, of course, an optimistic scenario. Let's think of other scenarios.

And you're going to be working with 1 to 4 teams for up to 3 weeks.

Sold

PHOTO RELEASE

What do you sell?

For this quiz to check your understanding of the channel diagrams, match the appropriate channel diagram to the corresponding channel and put the appropriate number in the correct box.

We call it a select opportunity .

Everyone has gotten their tickets, or maybe they got sold out.

He's like, you know what, we have to match his prices.

My dad sells tractors.

We first started distributing and making physical products cars, food, utilities, etc. and we distributed them through direct sales force that is people you shook hands with, look in the eye and met.

This is the PC guy over here.

I'm a salesperson.

I had to break a machine open.

Our liquor license!

What's so awesome about a queensize futon sale?

This guy is a Bible salesman.

And the reason why they're the sell side is because they're always selling you stuff.

And that's better than what you get out of treasury bonds.

So that's what sell side means.

So now they're in it together.

October is inventory time.

Anything from the trolley?

Cell phone salesman.

He could also be a Bible salesman.

He sold you the roofilin?

But this time, we have resellers and the resellers don't work for us.

Some of them might actually add some service or support but they're essentially an extension of the distribution channel, and they talk to the end users.

So for some industries, distributors play a pivotal role in the distribution of the product.

If it turns out you're right, we could sell dealerships now, which sounds crazy.