Channel Sales 101: The Sh*t Nobody Tells You (a series)
Everyone’s got an opinion about channel sales, but very few know what they’re talking about. I’ve been in the game long enough to see the good, the bad, and the ugly.
9/23/20243 min read
Channel sales can be a ruthless game. You think you’ve got it figured out with your shiny new product and a list of potential partners, but reality hits hard. After 20+ years in channel sales, I’ve seen the highs, the lows, and the downright ugly moments that nobody warns you about. Here are the three dirty secrets of channel sales that will save your ass if you’re brave enough to listen.
1. Switching Vendors? Don’t Expect Your Partners to Jump Ship
So, you’ve decided to pivot from selling data center hardware to diving into the security software arena with a brand like ESET. Sounds exciting, right? Think again. When you switch vendors, your existing partners aren’t going to follow you like loyal puppies. Most of them are comfortable where they are and don’t see a reason to stick around when you change the game.
Why It’s a Pain in the Ass:
Misaligned Interests: Your partners were built for one thing, not another. Expecting them to seamlessly transition to a completely different product is unrealistic.
Relationship Reset: You’re essentially starting from scratch. Building trust and proving value takes time and effort.
Niche Expertise: Moving from data centers to security means your partners need different skills and knowledge. Not everyone can make that leap.
Survival Tips:
Identify the Right Partners: Don’t assume your current partners are a perfect fit for your new venture. Look for those who have experience or interest in the new domain.
Communicate Transparently: Be upfront about the changes and why you’re making them. Honest conversations can salvage some relationships.
Provide Support: Offer training and resources to help your partners understand and sell the new product effectively. Show them the damn value.
2. The Shotgun Approach is Bullsh*t
Remember the old-school tactic of spraying your message to every possible partner and hoping something sticks? Yeah, forget that. The shotgun approach is outdated and ineffective in today’s hyper-competitive market. Instead, you need to be surgical with your partner selection.
Why It’s a Total Waste:
Low Conversion Rates: Most of your efforts will go to waste hitting partners who have no interest or capacity to sell your product.
Diluted Resources: Your time, money, and energy are spread too thin, leaving you with mediocre results across the board.
Brand Damage: Bombarding uninterested partners can tarnish your reputation and make future collaborations harder to secure.
Smart Alternatives:
Define Your Ideal Partner Profile: Just like you have an ideal customer profile, outline what your perfect partner looks like. Consider factors like size, geography, expertise, and existing customer base.
Target Strategically: Focus your efforts on partners who meet your criteria and have the potential to deliver real value. Quality over quantity, always.
Build Deep Relationships: Invest in nurturing relationships with a select few rather than spreading yourself too thin. Strong partnerships yield better results.
3. High Commissions Alone Won’t Cut It
Thinking that offering sky-high commissions will have partners flocking to your side? Think again. While competitive margins are important, they’re not the magic bullet that guarantees partner loyalty or enthusiasm. If your product doesn’t stand out, no amount of money will keep your partners interested.
Why It Falls Flat:
Price Wars: Offering excessive commissions can lead to a race to the bottom, eroding your margins and devaluing your product.
Lack of Differentiation: Partners need more than just money to stay motivated. If your product isn’t exceptional, high commissions won’t matter.
Sustainability Issues: Flashy incentives might attract partners initially, but they won’t keep them around long-term if there’s no real value to your partnership.
What Actually Works:
Strong Value Proposition: Focus on the quality and uniqueness of your product. If it solves real problems and delivers results, partners will have no trouble selling it.
Reputable Customers: Showcase who’s using your product and why they love it. Trusted brands and satisfied customers make your product easier to sell.
Comprehensive Support: Provide your partners with the tools, training, and resources they need to succeed. Make their lives easier, not just their wallets fatter.
Real-World Example:
Take ESET’s journey into the U.S. market. They didn’t just throw money at partners and hope for the best. Instead, they built a solid reputation in their home market, developed a robust partner program, and implemented airtight contracts to protect their brand. When they entered the U.S., their established credibility and quality product set them apart from the competition. They learned the hard way that relying solely on commissions isn’t enough—product excellence and strategic partnerships are key.
Channel sales isn’t for the faint of heart. It’s a brutal, no-nonsense arena where only the prepared survive. By understanding that switching vendors means rebuilding relationships, ditching the shotgun approach for strategic targeting, and realizing that high commissions alone won’t win the game, you can navigate the channel sales landscape without getting burned. Remember, it’s about quality relationships, exceptional products, and a clear, focused strategy. Keep it real, stay resilient, and watch your channel sales soar.
Channel sales can be a wild ride, but knowing these hidden truths can save you from a lot of headaches. Stay sharp, stay honest, and don’t let the BS drag you down.