Understanding Sales and Why It Is So Important For Your Business

Most businesses are built with the hope of making a profit, therefore, every aspect of the business or company is tailored to achieve that goal.

While every department of a company is important to its overall success, some have a direct impact on the company’s profitability. One of these crucial aspects of a business is sales.

Sales are to businesses what oxygen is to us humans; it is that important!

A business that has not mastered how to sell its products or services may fold eventually as money or cash flow is what runs an establishment.

So, What Exactly is Sales?

The word “sales” is a term that is generally used to describe any activity or effort aimed at selling the goods and/or services of a company.

Large corporations usually have a sales department that is broken down into several teams. Each team has its own set of goals and targets, but they all work towards one goal, selling the business’s products and services and making it profitable.

These teams are often set up based on several factors like the type of goods and services they will be selling, their target market, and location. Everything done by these teams is aimed at selling the business’s product or service and doing it consistently.

What is the Difference Between Sales and Marketing?

These two are closely related and that is why they are often confused. Both are crucial to the success of a business and their departments usually work together. In a nutshell, marketing is done to create awareness for your product or service.

Marketers educate your target audience about your product and tell how it can better their lives in some way. Their goal is to get people interested in what you are selling.

When done right, marketing produces “leads”- people who are most likely to purchase your product but have not decided yet.

Sales, on the other hand, involves converting those leads into paying customers. Salespeople essentially convert interest into real money-making transactions.

One of the best ways to assess your sales is to do an analysis of your wins and losses sales. This will help you determine why deals have been won or lost thus allowing you to architect a program to help you and your team win more sales in the future.

6 Types of Sales

There are different types of sales including inside, outside, eCommerce, agency, B2C, B2B, direct, account-based, consultative, and business development sales. Let us look at some of them.

1. Inside

Everything that is done remotely to sell a company’s products or service are considered inside sales. These teams are usually within the walls of the business and use several media to interact with leads and close deals.

Companies that use this approach tend to follow automated processes and structured hours.

To stay organized and track conversions, these teams make use of sales software and funnels that help direct a lead’s journey to the company’s goal.

Several companies talk about the use of these tools. However, Clickfunnels talks about sales funnels in a way that is easy to understand and implement. Large organizations often have their own funnels and software custom-made to suit their specific needs.

2. Outside

Some companies also have outside salespeople along with inside salespeople.

These teams work on the field, that is, outside the company, meeting face-to-face with leads to close deals. Unlike inside salespeople, these teams have a more flexible approach that enables them to develop and implement their own strategies.

Outside salespeople or reps are always on the road, en route to prospects. They may meet with them in their office or at an agreed location that is within the region assigned to them by the company.

You will also frequently find them in seminars, conferences, and similar events where prospective customers are likely to attend. This is done to network, build relationships and trust. All of which makes selling much easier.

3. eCommerce

This is a different model and does not involve salespeople or teams. In this model, the company’s products are sold exclusively in an online store.

These stores contain information on all the products listed on the site; everything prospective customers need to make a purchase decision.

This approach is more hands-off than others and is mostly used by companies that are not large enough to staff and finance a dedicated team.

Since the pandemic that hit last year, eCommerce stores have become incredibly popular and even companies with salespeople are setting up theirs.

4. Agency

These typically involve signing clients on a retainer or by the project. Agencies that sign clients by project put in more effort to bring in new business, at least by the end of the current one.

On the other hand, agencies that follow the retainer model have an ongoing relationship with clients and have a predictable recurring income. They are less dependent on winning new clients.

5. Business-to-Customer (B2C)

This type of sales revolves around a business and its customers. B2C deals and transactions are usually less complicated and of lower price-value compared to B2B. Click here to learn more about B2C transactions.

6. Business-to-Business (B2B)

Selling in B2B is between a business and other businesses. Unlike B2C where the company’s product or service is sold to an individual customer, B2B transactions are only between one company and other companies.

B2B sales are characterized by bigger high-ticket transactions with more complex terms and agreements.

This is because the product or service being sold in these transactions plays an important role in the buyer’s business operations.

Importance of Sales in a Business

As we have already established early in the article, sales are incredibly important in every business. But aside from generating revenue, what other benefits does it offer?


Customers typically tend to acknowledge only products, services, or brands that are making a good and consistent sales amount. In marketing, it is called social proof.

A customer will only recommend what you sell if they see your growth as a company. This tells them that they are not the only ones that like what you sell, making it easier to recommend your merchandise.

Strengthen Company Spirit

Sales can drastically affect the employees of a business. When they are good, everyone will be in high spirits, encouraged by the fact that people actually want what they are making.

On the other hand, when they are low, employees lose motivation and zeal.

Final Thoughts

The role of sales in a business can never be overemphasized. No matter the company’s mission, if they are unable to sell what they have to offer, they will struggle to stay afloat.

Come to think of it, every other aspect of a business function as a support to the team that closes the deal. If they are unable to bring in revenue, other departments become redundant.

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