In traditional businesses, the term "Cost of Sales" is a very useful measure of the performance of a business. However, in many modern businesses it is almost meaningless, particularly when cloud hosted applications are considered. The actual cost associated with delivering a webpage or app is negligibly small compared to other costs in the business.
What is frequently not at all small, however, is the cost of selling into large organisations. Here the costs can become a very large proportion of the total contract value.
The Sales function in these businesses includes many of the best paid employees in the firm and their time is very valuable as a result. Encouraging Salespeople to share relevant content directly with their prospects and clients enables them to reinforce their relationship and simultaneously reinforce your organisation's position as leaders in your field.
These extra touch points build trust which ultimately shortens the sales cycle, which both drives growth and dramatically reduces your Cost of Selling.
Definition of cost of sales 1 in retailing : the purchase cost or inventory value of merchandise sold during a stated period plus the cost of direct work thereon (as alterations or workroom charges) 2 in manufacturing : the production cost or inventory value of goods sold during a stated period