Examples of Indirect Sales

Indirect sales are a major driver of revenue for some companies -- in fact, some businesses sell solely through indirect channels. Indirect sales essentially refer to transactions that occur when you promote your goods through a third-party provider, such as an affiliate, reseller or system integrator.


An affiliate is a company that sells your products or services to customers in exchange to a commission on each sales. Affiliate sales are common online, where a number of third-part intermediaries match providers with affiliates. You can provide banners and other ad tools for use in promotion to draw traffic and increase business. The affiliates then promote the solutions through their websites and marketing lists. A key benefit is that payments to affiliates are based on sales.

Reseller Programs

Reseller programs are somewhat similar to affiliates, but usually smaller in scope. Resellers are common in technology hardware and software industries, where providers rely on reseller partners to promote their products to the market. Apple, for example, relies on reseller partners to promote their products and services online and through face-to-face channels. The partners often derive a 10-20 percent margin or profit percentage on each sale.

Independent Sales Representatives

Instead of or in addition to direct sales representatives, some companies arrange for sales through independent reps. By using independent reps, businesses can limit the amount of sales staff they employ. This also reduces costs for items like travel and office management. Insurance companies commonly rely on independent agents that sell on behalf of many insurers. The insurer pays the agent a commission on the revenue it generate from new customers and renewal business.

System Integrator

A system integrator is a company that promotes "solutions" to customers, often in a B2B format. This setup is common in technology, where a service provider includes your hardware and software products in its portfolio when making tech recommendations to customers. IBM is a business consultant that recommends technology solutions to business customers. They sometimes includes other hardware and software components in integrating tech solutions.