Startup Sales Channels — Pros & Cons — Part 2

This is the 2nd part of a series on sales channels. The first part dealt with ads, your network and conferences; in this part we will review channel sales, referrals and content marketing.

Channel Sales

What: Where another company distributes your product to customers, using their existing relationship with those customers. Also known as ‘business development’ or ‘partnerships’.

Pros:

Cons:

Referrals

What: Your customers recommend your service to other potential customers, sometimes with a reward incentive for the referrer and referred. For example, Dropbox offers additional free space for every new customer account referred by an existing customer.

Pros

Cons

Content marketing

What: Written, audio, or video content that is interesting to your potential customers. When a potential customer consumes this content, they’re also exposed to your offering.

Pros

Cons

If you can make these sales channels work, they can provide immense scale; but each one also has serious drawbacks that your company will face regardless of the channel’s success.

In the next article, we will look at the pros and cons of 3 other sales channels: cold emails, customer advisors and consulting.

Sterling Road invests in pre-seed B2B startups based in North America. Full process here: sterlingroad.com/process.
You can reach me here:
ash@sterlingroad.com

Thanks to Kaego Rust for their help on this article.
Photo by
Jason Dent

Pre-seed Investor. Email: ash@sterlingroad.com. B2B, US only. I work with founders for 3 months before investing. More info: http://SterlingRoad.com/process