In an established territory, as sales go up, the results should more than pay for salaries and travel expenses. However, the cost of maintaining a direct sales staff may sometimes mean increasing their territory with diminishing penetration-loss of sales because of less frequent calls on customers. Their pay is a percent of sales. They pay their own travel expenses. In opening up new territories and maintaining sales coverage in territories with a limited yield, you pay for results.
Coverage is concentrated in a given geographic area.
Paper Work Direct Sales. Payroll and other clerical work is necessary to maintain direct sales staff. Only commission statements need be issued. The agents handle their own expenses, taxes, and have their own clerical staff. Control Direct Sales.