Understanding Sales Types in IT: How Do Channel, Direct, Inside, and Project Sales Differ?

Deepa Surakattula
Hi All,

I would like to have your opinions on different kinds of sales. I also want to understand the difference between Channel sales, direct sales, inside sales, and project sales specific to the IT sector - both hardware and software (for both international and domestic markets). I have been coming across different kinds of sales and business development requirements from the management. Therefore, I need this information for better understanding.

Thanks & Regards,
Deepa :icon1:
razabpn
I assume yours is an IT Vendor Company, e.g., Wipro, HCL, or Dell. May I know which one it is?

Channel Sales: Sales where a channel partner is involved. For example, Wipro sells 'computer hardware + Software' to IOCL through a Channel Partner called 'XYZ' in Delhi. They are typically Computer dealers, etc. There are some Business Partners/Distributors/Value-added partners, etc., based on the type/value of business they do.

Direct sales: Sales where your own sales resources are involved. Typical sales. For example, HCL's ASM in Bangalore sells to Biocon Ltd.

Inside sales: There are people in the sales force who actually hunt down prospects by telephone or mail, etc. For example, they will pick all Engineering colleges/Universities from sources and start cold-calling to find out any sales opportunities. Then, they will pass this information to the respective salesperson in that geography. They typically operate from a corporate location. They don't travel out.

Project sales: Government of MP wants to computerize their Excise Dept. Bharti Airtel is implementing SAP. These types of big complex projects involve a lot of hardware/software/consulting/vendors, etc. They are typically multi-year, multi-million, multi-location rollouts; that's why they are called projects! So for these, the sales force is highly experienced/learned.

May I know which company you are from and what the opportunities are... :icon1:
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