Insights & Updates

Direct Sales vs. Sales Channels

Which is Right for Your Business?

When you first bring your product to the U.S. market, gaining visibility can be a challenge. Many manufacturers opt to partner with resellers to help spread the word, while others take control through direct sales. But which approach is best for you? Let’s break it down and explore how to prepare for success—whether through resellers, direct sales, or a combination of both.

The Role of Sales Channels

The U.S. dental industry is filled with resellers eager to add new products to their lineup. However, not all resellers offer the same level of market reach. A small dental lab reselling your product will have significantly less exposure than a large distributor like Benco. But does that mean bigger is always better? Not necessarily.

Larger distributors provide product validity simply by association, but they also demand more from your company—without any guarantees that their large sales teams will actively promote your product. On the other hand, smaller resellers may be more invested in your success but have a much smaller reach.

Pros & Cons of Using Resellers

Pros:

✔ Increased Exposure – Your product reaches more potential buyers.
✔ Built-in Sales Team – The reseller’s team handles sales efforts.
✔ Product Validity – Association with a recognized reseller can boost credibility.
✔ Potential Customer Support – Some resellers provide customer service for your product.

Cons:

❌ Lower Profit Margins – Resellers take a cut, reducing your earnings.
❌ Less Control Over Sales Process – You rely on their team to sell your product.
❌ Increased Hand-Holding – Some resellers require significant support and training.
❌ Limited Pricing Control – You may have less flexibility in pricing strategy.

The Case for Direct Sales

While resellers can provide exposure, direct sales offer higher profit margins and full control over the customer experience—but success in direct sales requires a clear strategy, the right team, and a structured approach.

What It Takes to Succeed in Direct Sales

1️⃣ A Strong Sales Team & Manager

• Direct sales aren’t just about having a few sales reps. You need a sales manager who can drive deals to close, even with a small team.
• This leader ensures sales processes are streamlined, prospects are nurtured, and the team is held accountable.

2️⃣ A Marketing Plan & Budget

• Without marketing, even the best sales team will struggle.
• A defined budget for ads, SEO, email campaigns, and industry events is crucial to generating leads.

3️⃣ Sales Enablement & Customer Journey Optimization

• Do customers understand why your product is valuable?
• Direct sales require clear messaging, competitive pricing strategies, and a frictionless buying experience.

Finding the Right Balance: Resellers, Direct Sales, or Both?

Some companies start with resellers for exposure and gradually transition to direct sales for better control and profits. Others maintain a hybrid approach, leveraging both strategies for maximum reach and stability.

The key is preparation. You need a scalable sales process, a trained team, and a marketing strategy to make direct sales work effectively.

How Wagey Can Help

At Wagey, we specialize in helping businesses develop winning sales strategies—whether through resellers, direct sales, or both. We work with companies to build strong sales teams, create effective marketing plans, and develop structured business strategies for long-term success.

💡 Want to find the best strategy for your business?
👉 Fill out our questionnaire for a free custom business plan tailored to your needs!