Levels of technical skill or expertise required to deliver the service satisfactorily People- based services, or other services which require a relatively high degree of technical skill or expertise for satisfactory delivery, are better suited to direct distribution. The costs of training channel members and monitoring quality need to be assessed against the cost of setting up branches to serve target markets. Some service intermediaries do provide personnel with the right skills and knowledge, however, especially in sectors traditionally served by agents or intermediaries; such as travel agents or insurance brokers.

Greater control
 Customer service and satisfaction levels can be more easily monitored, as can service quality
 Management has direct control over all aspects of operations
 Internal and external communications can be handled more effectively
 Closer involvement with customers
 Direct contact with customers can allow databases to be established and used for target marketing