External Sales

External sales refers to the process of generating sales and revenue through channels outside an organization's own internal sales team. This typically involves partnerships with other companies, resellers, or independent sales agents that sell a company's products or services to their own customer base.

Example: A software company that develops a project management tool enters into a partnership with a consultancy firm specializing in business efficiency. The consultancy firm recommends the software to their clients and receives a commission for each sale. This arrangement allows the software company to tap into new markets and customer bases without directly employing additional sales staff, exemplifying how external sales work in a B2B context.

• Expands potential customer reach beyond the capabilities of an internal sales team.
• Leverages the existing relationships and market knowledge of partners.
• Can be a cost-effective alternative to expanding an in-house sales force, especially for SaaS and B2B companies.

Understanding external sales helps businesses strategically increase their market presence, effectively utilize external networks for revenue growth, and make informed decisions about sales channel optimization.