Ready, steady,…go channel! Part 2

Part 2: What is your plan?






Building a channel requires a long term commitment. You need to know where you are starting from and most of all, where you want to go. Pending that, you will be able to prepare for some of the key issues you will need to address on the way. Continuity and consistency are key to a solid relationshipHave you thought through and documented short, medium and long-term plans?   


  1. Will you move directly to a full indirect model? (no more end user invoicing).
  2. Do you plan to make that move in the coming years

Is your sales compensation policy compatible with indirect sales model

  1. Your direct sales staff must not lose-out if a customer buys from a channel partner. Otherwise they will play against your channel and your partners will walk away
  2. Your channel partners must not see your direct sales force as the enemy

Have you thought through your total pricing and discount policy

  1. Benchmark it against your competition’s
  2. Do you have a pricing and discount policy that will encourage your new partners to reduce your own costs (that is why you share part of your margin with them)
  3. Build a realistic value proposition that your Account Managers will be able to defend in front of a seasoned reseller principal

“Right-size” your channel recruitment strategy:

  1. Don’t go berserk and recruit every partner you can find
  2. How many partners can you handle, should you recruit a distributor?
  3. Should you recruit one or several distributors?


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