Direct Salesforce Versus Independent Representatives: A Strategic Choice Across a Business Life Cycle

Sales force structure is critical for the sales organization because they determine how quickly sales forces respond to market opportunities, influence sales people’s performances and affect sales organization’s revenues, compensation costs and profitability. A sales organization that does not link evolving sales force structure as it passes through different stages of business life cycle is placing itself at considerable risk in implementing an effective sales force management and compensation policy. Although, sales organizations devote considerable time and money to manage their sales forces, few focus much thought on how the sales force structure needs to change over the life cycle of a business.