I was under the impression that giving away an account means handing off a client to another sales rep, but I am currently reading someone describe their company’s sales team saying “when it came to handling accounts/clients, they frequently gave away free accounts in order to “retain” customers and make their own sales numbers look good, and somehow they got away with it.”
Based on context I can determine this is unethical, but I do not understand what exactly this sales team is doing. Anyone know?
In: Economics
The company has some kind of a subscription service model and they were giving away their services for free in order to be able to say they had a certain number of active accounts and imply they were making sales they weren’t actually making.
“Accounts” in this context may not refer to a relationship with a customer, the “accounts” could be the product they are selling, i.e. an account refers to a login/license to use software. If they are supposed to be selling copies of the software, giving somebody access for free makes the sales numbers look better, but doesn’t actually help the company. It would be like giving out any other product for free instead of selling it for the price you’re supposed to.
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