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Indirect Channel

Indirect Channel

Noun

An indirect channel is a sales channel where a product or service is sold to the end user through intermediaries rather than directly from the company. These intermediaries can include distributors, wholesalers, retailers, value-added resellers (VARs) or other independent partners. In this model, the company relies on the expertise and network of these partners to reach a wider audience and facilitate the sales process.

Indirect channels offer several advantages for companies. They can use the existing relationships and established customer base of their partners to expand their market reach and speed up the sales cycles. By outsourcing the sales process to intermediaries, companies can focus on their core competencies, such as product development and marketing, while their partners handle the complexities of sales, distribution and customer support. Reseller programs are a common example of indirect channels. In this model, partners sell a company's product on their behalf, adding their own value-added services or expertise to differentiate their offerings. This allows companies to tap into specialized markets and leverage the partner's industry knowledge and connections.

Example:

An indirect channel allows users to easily find your services through wholesale distributors that may already have a built-in customer base.

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