But this time, we have resellers and the resellers don't work for us.

In a physical channel, a direct sales force are sales people that work for you directly and typically sell directly to the end user.

COGS were that.

I'll re initialize you and send you to a store to be sold.

Your direct sales people can actually be the one talking to the consumers directly or they could be the ones selling to system integrators,

What video lets me do is since I can't be in front of him at a sales counter,

Retailers and mass merchants often, though not always, get their products supplied through distributors.

We first started distributing and making physical products cars, food, utilities, etc. and we distributed them through direct sales force that is people you shook hands with, look in the eye and met.

They both make 100,000 in revenue.

So you might be a graphics supplier to Apple or Hewlett Packard.

You know, the average grocery store today offers you 45,000 products.

selling or bartering our goods at each.

Sell, sell, sell.

So let's take a look at a direct sales example.

When you're thinking about growing customers, nothing magic.

Phase 1 is you're going to get ready to sell.

Well, the first thing you might want to think about is, can I un bundle some of the stuff in my startup that I tried to package all at once.

Suppose marketing experts have determined the relationship between the selling price of an item and the cost of an item can be represented by the linear equation q 30s 800, where q is the quantity sold in a year and s is the selling price.

I can put a video in front of him that shows him as much as possible about the product, so he or she completely understands what it is we're selling.

But it wasn't until the mid 1990s with the emergence of the Internet that we were able to distribute physical products through a virtual channel.

Well, I sort of design products and sell them.

But the growing dominance of the market economy, where the products of our intellectual labors are bought and sold, produced an unfortunate side effect.

A merchant is a person who buys and sells goods.

Illgotten goods never prosper

But this is actually the technique that is used by many online websites that sell things to try identify users behaving strangely that might be indicative of either fraudulent behavior or of computer accounts that have been stolen.

And do their profit is 20 for carrying, stocking, and reselling our product.

So instead of just small storefronts, they aggregate tens or hundreds of thousands of products under one roof.

Business is business.

Accessories were laid out on the shelf for sale.

Caine spent summer vacation coming to work with me.

I'd get a nice piece of steak, flowers, sometimes even a gift.

He sold his goods at a sacrifice to close down his business.

Half her goods were sold cheap.

I had to break a machine open.

We sell goods on commission.

Let's take a look at all the choices that you might have when you start a company.

The goods will be sold on the spot.

The company plans to sell the new product for 1,000.

It turns out, atrazine is the largest selling product for the largest chemical company in the world.

But this is, of course, an optimistic scenario. Let's think of other scenarios.

That is, am I going to put it on a third party website like an Amazon or a web aggregator, or physically, am I going to use system integrators or VARs or some other indirect channel like a retail store.

But the main thrust of the DMCA was that it was legal to sell you uncopyable digital material except that there's no such things as uncopyable digital material.

The way the TV industrial complex works, is you buy some ads, interrupt some people, that gets you distribution.

He's always making mistakes. Sometimes it's really embarrassing. He's giving me the old cripple's mail orders.

And their value proposition, as even they realized later, was pretty unclear.