Some interesting data points:
- Direct Sales: Someone shows up at customer site
- Tele-sales: person-to-person calling
- Direct Marketing
- Word of Mouth
Method | Cost per sales person | Minimum Sales per year | Minimum price (200 selling days / year) |
DirectSales | $300-400K | $1 Million | $5000 |
Tele-sales | $80K | $250K | $1250 |
Basically means this means that if you need to have person involved in every sale, the minimum cost of your product has to be over $1000. If it isn’t, advertising and word of mouth better carry the day!
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