Talk Talk Sales Show Value of Indirect Channel
There is reason why many products are sold using indirect (partner) channels. This chart by Talk Talk in the United Kingdom illustrates the basic economics. Talk Talk sells 83 percent of its products wholesale, using indirect channels (channel partners).
The traditional reason for using indirect channels is that a supplier cannot afford to sell direct to customer segments targeted by the channel partners.
In fact, Talk Talk reports that earnings (cash flow) from the indirect channels used to sell to consumers are about the same as cash flow from the business customer segment which is sold using a direct sales force.