Indirect channel
Noun
[in-de-rekt chan-l]
An indirect channel is a sales channel in which goods and services are sold indirectly from the producer through independent middlemen to final users. If there is any intermediary between the producer and the end user, the sales channel can be considered indirect. To contrast, direct channels involve purchasing by the consumer directly from the producer.
Reseller programs are a kind of indirect channel wherein partners sell a producer's product on their behalf. Indirect channels allow producers to sell more product by reaching a wider audience through their partners and outsource the sales process to their teams.
Example: An indirect channel allows users to easily find your services through wholesale distributors that may already have a built-in customer base.
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Noun
[in-dee-pen-dint sohft-ware venn-der]
An independent software vendor (ISV) creates, markets, and sells software that runs on one or more computer operating systems (OS) or cloud platforms. In other words, an ISV is a company that distributes its own software. ISVs often distribute their software on marketplaces. Hardware providers, operating systems, and cloud platforms can all offer ISVs on their marketplace, but they'll only accept, or ISV certify, the ones with the best or most relevant software.
Independent software vendors build software for human use, which distinguishes them from original equipment manufacturers (OEM) who normally develop software for backend use. Computer hardware and operating system companies (for example, Microsoft, Apple, and Google) often include ISVs in special partnership programs. This is because the more applications that can run on a platform, the more value it can generate for the platform provider.
When it comes to cloud computing, ISVs often sell their software on a software as a service (SaaS) basis, through platforms like SalesForce AppExchange and Microsoft Azure.
Example: Joino developed its own software, which was ISV certified on Amazon Web Services (AWS). AWS sold the software to end users, and Joino enjoyed a healthy profit.
Noun
[in-de-rekt sayls]
A marketing method products and services are not directly sold to customers, but rather through partnered organizations, like a reseller, agency, or affiliate marketing partner.
Indirect sales are often used in conjunction with direct sales channels. Utilizing indirect sales can increase scale rapidly for B2B SaaS companies since they tap into the reseller or partner's existing network while also decreasing overhead costs.
Example: Indirect sales mean that there is no direct contact between the software company and the buyer.
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