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CFA Level I · CFA Level I Exam · Business Models

A software company sells annual subscriptions to small businesses through its website and spends little on a sales force. Which of the following most likely describes its customer channel?

The company most likely uses a direct channel through its own online platform. It sells subscriptions straight to customers via its website without intermediaries and with little spending on a sales force, so neither a reseller network nor a large field team fits.

  1. AIndirect, through a network of resellers
  2. BDirect, through its own online platformCorrect
  3. CDirect, through a large field sales team

Explanation

Selling through the company's own website to customers is a direct, online channel. Resellers would make the channel indirect, and a field sales team contradicts the low spending on sales staff.

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