build a better channel

Copyright© 2002 The York Group International, Inc. www.theyorkgroup.com We make going global easier

THE YORK GROUP© Copyright 2008– www.theyorkgroup.com

The York Group

Building Better Channels



Relationship With Your Resellers

Are your partners working as a team, pulling you in the right direction?



Or Are They …

Inactive ?

Resentful?

A nuisance?



Path to Channel Success

Reacting

Coping

Anticipating

Orchestrating

•Opportunistic sales•No formal programs•Low profits, ROI

•Inconsistent partner results

•Agreements tailored to each partner

•Targeting markets/products

•International channel structure in place

•Need to accelerate revenue growth

•Established offices and partners in major markets

•Some under-performing products or markets

•Position company for an exit



Benefits of an Effective Channel



Two Basic Channel Models

You are a strategic product• Partners do their own marketing• Significant sales every year

You are a portfolio product• You feed your partner with leads• One or two sales per year … maybe

OR



When Are You a Strategic Product?

A dedicated salesperson

An activities-based marketing plan

You are part of the reseller’s “survival toolkit”



Why Don’t Resellers Sell?

Portfolio mentality•A lot of “nice to haves”

You are a disruption



You Are A Risk – Not An Opportunity

Market riskWrong product, timing,

packaging, language, functionality, focus, content, feature set,

customers, etc.

Exit risk•Doing “too well”•Market becomes too attractive for the vendor to “resist” selling directly

Vendor risk•Lack of knowledge, cultural sensitivity, understanding of how things work in the partner’s market

•Compromising the partner’s relationships through stupidity

Resellers take on three levels of risk



Making a Channel Work

A quote from Geoffrey Moore in “Crossing the Chasm”

"Getting and sustaining the attention of someone else's sales force is a full-

time job, since helping to sell someone else's product is an unnatural act that

must be stimulated constantly"



It Always Comes Down to Selling

People sell what they know how to sell.

Get the salespeople on board and you will have a

productive partner.



What’s An ISV To Do?

Package yourselves the same way you would your product



Building a Successful Channel

Channel Success

Give partners a reason to trust you – have a solid channel

program

Identify, qualify and recruit the right

partners

Manage the partners to keep them focused on

your products



Steps in Partner RecruitmentT

otal elap

sed tim

e – 4-6 mo

nth

s



Need More Help?

www.theyorkgroup.com

• Local contact information

• 101 Questions e-book

• Other useful resources

build a better channel

Business