Are You Channel Friendly? The Sh*t Nobody Tells You About Being Channel Friendly
Channel friendly isn’t just a buzzword—it’s a necessity if you want to thrive in today’s market. But what the hell does it really mean?
10/24/20243 min read
Are You Channel Friendly? The Sh*t Nobody Tells You About Being Channel Friendly
Are You Channel Friendly? The Sh*t Nobody Tells You About Being Channel Friendly
"Channel-friendly" isn’t just a buzzword—it’s a necessity if you want to thrive in today’s market. But what the hell does it really mean? After 20+ years in channel sales, I’m here to cut through the BS and tell you what it takes to be a channel-friendly vendor. Buckle up, because here’s the raw truth.
1. Selling With vs. Selling Against Partners
A lot of vendors claim they’re channel-friendly, but what does that even mean? It’s about collaboration, not competition. Selling with partners, not against them, is the cornerstone of a successful channel strategy.
Why It Matters:
Partner Loyalty: When you support your partners, they’re more likely to champion your product rather than see you as a threat.
Market Reach: Partners have their own networks and customer bases. Collaborating with them extends your reach without blowing your budget.
Reputation: Being channel-friendly builds your reputation as a trustworthy vendor, making it easier to attract top-tier partners.
Survival Tip:
Avoid Direct Competition: Don’t have your direct sales reps poaching customers from your partners. It’s a quick way to burn bridges and lose trust.
2. Balancing Direct and Channel Sales
Finding the right balance between direct and channel sales is crucial. Too much direct sales can alienate your partners, while relying solely on the channel might limit your control.
Why It’s a Pain in the Ass:
Channel Conflict: Overemphasis on direct sales can create friction with your partners, leading to mistrust and disengagement.
Limited Reach: Relying too heavily on the channel might mean missing out on direct sales opportunities and valuable customer insights.
Complex Compensation: Balancing commissions and incentives between direct and channel sales can get messy and unsustainable.
Smart Strategy:
Define Clear Sales Channels: Decide on a percentage split that makes sense for your business—whether it’s 80% channel and 20% direct or another ratio that fits your model.
Transparent Communication: Keep your partners in the loop about your sales strategies and how they fit into the bigger picture.
Equitable Incentives: Ensure your compensation structures are fair and motivating for both direct and channel sales teams.
3. Enabling Your Partners for Success
Being channel friendly isn’t just about lip service. It’s about providing your partners with the tools, leads, and support they need to sell your product effectively.
Why It’s a Total Waste:
Lack of Support: Partners can’t sell what they don’t understand or have the resources to market.
Missed Opportunities: Without proper enablement, your partners aren’t equipped to maximize your product’s potential in their markets.
Frustrated Partners: When partners struggle to sell your product, it creates frustration and lowers their motivation to push your brand.
What Actually Works:
Lead Sharing: Provide your partners with qualified leads to jumpstart their sales efforts.
Co-op Marketing: Invest in joint marketing initiatives that benefit both you and your partners.
Training and Resources: Offer comprehensive training programs and easy access to sales materials, technical support, and marketing collateral.
Deal Registration and Protection: Implement deal registration processes to protect your partners’ efforts and ensure they get credit for their sales.
Real-World Example: ESET’s Channel Strategy
Take ESET, for example. They’re channel-friendly by prioritizing partnerships over direct competition. They provide their partners with extensive training, leads, and support, ensuring that partners are well-equipped to sell their security products. This collaborative approach has allowed ESET to penetrate the U.S. market effectively without alienating their partners.
Conclusion
Being channel friendly isn’t just about saying you are—it’s about showing it through your actions and strategies. Selling with partners, balancing direct and channel sales, and enabling your partners for success are the three pillars that will set you apart as a truly channel-friendly vendor. Stop the BS and start building genuine, supportive relationships with your partners. It’s time to elevate your channel sales game and watch your business soar.