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

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

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?

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

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.

You will be paid a stable base salary plus commissions on sale.

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.

Fee?

You know, the average grocery store today offers you 45,000 products.

Where is there a soft drink vending machine?

(Laughter) (Applause) (Circus music)

What about the dealers filing suit against you?

Sold

PHOTO RELEASE

What do you sell?

All right, that's 40 times 42 minus distribution charges....

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.

And then everyone quit on us. We have absolutely no distribution.

It computes the cost of goods sold.

You know, he helps me sell the paintings and shit.

For facilitating.

We call it a select opportunity .

And the few people that are selling them, they're usually selling them when they are distressed in some way.

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

I can count on one hand the Andorians who've seen one facetoface.

Three percent of your commission from here on out.

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

My dad sells tractors.

So m, the amount of money collected, is a function of the number of tickets he sells.

But this still works out, right? I'm still making more money.

This is the guy that invented it, Sir Clive Sinclair, and he's showing his machine.

And if you go a little bit lower, it tells me capacity utilization.

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.

like you could in the enterprise, and so you want to get out and reach them virtually, but the number you want to get to really is an order of magnitude different than if you were doing B to B direct sales.

This is the PC guy over here.

He's selling tickets, and so he can't sell negative tickets.