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In this modern age of technology with "virtual" games, "virtual" workforces, and "virtual" offices – what is the real definition of Virtual anymore? According to Webster virtual means "being such in essence or effort though not formally recognized or admitted." So in this usage of "Virtual Marketing" we are stating that marketers or sales agents no longer work directly for a single company or institution, but rather in essence.
Virtual Sales vs. Traditional Sales
Consider the traditional sales force. Typically a manager to structure the team, assign territories and accounts, establish sales quotas, budgets, commissions, and bonuses. Then the addition of the sales personnel: how many? What geographic location? And finally salaries, benefits, travel and expenses must be taken into consideration.
Contrast the virtual sales force. Salespersons located throughout the country with knowledge in specific industries, technologies, strategies and the like. A workforce that can be flexed as needed up or down in numbers without recruiters, hiring lag times, salaries, relocating, etc. Depending on the product or service to be sold a brief training might be required. Otherwise the virtual sales agent is ready to hit the ground running.
How it Works
Virtual sales personnel may sell for one or many different companies representing an array of products or services, or may be exclusive to a particular company of interest. Unlike VAR’s (value added resellers), the agent is not selling with a mark up as a dealer or broker, but rather selling alongside the vendor just as if he/she were permanent sales staff.
A virtual sales force can be organized in a variety of ways. There may be a draw against commission or perhaps a retainer. Generally the money comes from what would normally be “referral” fees. However, the draw or retainer is the incentive to sell this particular product or service over what the agent might refer by chance.
Referral fees can also be a bit tricky depending on the circumstance. Ranging from 2% to 10%, referral fees are usually based on closing the sale with the help of a partner company or outside source. But is the fee based on gross or net sales? Is it a one time fee or for the life of the contract? Is it only on the sale of the product or the service that goes along with it? These are the discussions a virtual sales person must understand.
Obtaining and Managing a Virtual Sales Force
For a company whose business is NOT people, finding the sales force may be a bit of a challenge and certainly going to recruiters’ defeats the purpose. However, for firms such as Navesink Logistics, where people ARE the service, finding the appropriate skill set is not an issue. With a database of contractors and a large networked community; industry knowledge, business development knowledge and other required skills are easily accessed. Individuals can then be screened about the sales opportunity for interest and availability.
Management oversight becomes the final piece of the virtual marketing puzzle. In this case the manager monitors each sales professional as to customers, where they are in the sales cycle and communicates to the vendor status, progress, and next steps for vendor involvement.
Conclusion
A virtual sales force can be cost effective with regard to salary and benefits. In addition, it is a very flexible model for companies that may want to scale their sales force up or down in accordance with a new product launch or specific months of the year that are generally slow. The virtual agent is knowledgeable and stands to gain as well. Thus a virtual marketing program is a winning combination for all parties.
To discuss virtual agent availability, contact Navesink Logistics at 732.671.5746
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Introduction
