Indirect sales channels are used in many industries, particularly in technology hardware, software and SaaS environments. It’s cost effective and allow for more “feet in the street” who already know “where the bodies are.” That is to say, good channel partners are positioned in the marketplace with focused attention on customers and prospects and will drive more business for you if you can drive the right incentives for them. Here are 3 truths about channel selling:
1. Squeaky Partner Gets the Deal
While it may not be fair, it appears true that the vendor and channel partner that have more interaction with each other do more business. Whether a channel manager or a rep selling through channel partners, the more you stay in contact with your partner, the increased likelihood that you will conduct more deals and book more revenue together. Why is that? Simple. Familiarity, in this case, does not grow contempt, but makes the heart grow fonder – and drive more deals. Know and prioritized your best partners. It pays off.
2. Compensation is Everything
It’s not that it’s just about money, it’s about the highest return for the investment in time and attention. Partners do the calculation, directly or indirectly, an assess whether this vendor or that vendor is worth it, regardless of the corporate push. Know how your partner gets paid and appropriately help them be successful.
3. Channel Partners Don’t Suffer Fools
Sales partners are like you – they want to work with competent people who bring them value. You don’t have to know all the answers, but you need to be responsive and know how to get the answers. Invest the time to know and serve your partner channel with insights and worthwhile activity that will bring them revenue. The resulting value will be mutual.
Are you channel savvy?