They devote only part of their time to your products because they handle a number of lines. But, in many cases, an agent has several people working so that you are buying their talents and time also. Opening New Territories Direct Sales. It often takes a direct sales staff a good deal of time to develop a following in a new territory. Even an experienced person needs time to accumulate detailed knowledge about a new territory.
Investment can be high in starting a new territory or walking up an old one.
Cash must be spent for the employees' salaries and travel, sometimes for months, in order to build a profitable sales volume. Established agents offer a built-in following in given territories. They and their assistants have depth knowledge of the territory and the customers they serve. Moreover, an agent only gets paid on results. Cost Direct Sales.