Direct sales jobs often seen as the initial proving ground for young college graduates across industries and businesses. Whether it is a product, a service, financial, pharmaceutical, industrial, consumer or advertising, direct sales forces have traditionally been the revenue engines for business. But as technology, demographics and buying behavior have changed over the past decade, there are signs that the traditional direct sales force may be going the way of the typewriter and carbon paper.
Cost. Direct sales forces are costly. They require extensive management, systems and tools, training and often office infrastructure. Additionally, they are generally paid an amount of base pay plus benefits before they get a penny of sales commission. In effect, they are usually on salary with sales commission from 25-50% of their pay. But even if they do not sell a penny of product or service, they still get their base pay, their benefits and all the expenses associated with them and their management has to be paid also.
Flexibility. Direct sales forces are inflexible. Usually they have a fixed organization structure tied either to an account or a territory. Their management is an aggregation of the same. As is their executive management. Any changes to this structure usually happen annually, if then. The same holds true to compensation plans. Direct sales forces usually have annual sales compensation plans. Yes, they do have periodic promotions, incentives and