The Problem With Channel Partners

The Challenge of Channel Marketing

Get channel marketing right and companies can enjoy significant growth and improved profitability. But getting your channel ‘right’ is a challenge for many vendors. Selecting and recruiting the right companies is just the start of the process: training, support and MDF (Market Development Funds) take valuable time and resources. And the results are not guaranteed. Here are just a few of the issues faced by vendors pursuing a channel strategy:

Channel Partners have Limited Resources

Most partners have little in the way of their own marketing collateral (White Papers, Case Studies, Video) and many do not have a dedicated marketing manager. With resources tight partners tend to focus their efforts on one or two preferred solutions. Which means that for the majority of vendors the 80-20 rule applies: 80% of revenue generated by just 20% of partners. Improving the ratio by 10 points could dramatically improve vendors’ turnover.

Channel Partners are in Competition

Get three channel partners in a room together and it is odd on that you will have three organisations in direct commercial competition flaring their nostrils at each other. It does not create an environment of openness and collaboration. Which is a shame for the vendor because openness and collaboration is needed to maximise marketing effectiveness and generate opportunities.

This lack of openness means that it can be difficult to accrurately guage the impact of MDF, joint campaigning and your overall marketing efforts. The channel just appears to be a ‘black hole’ into which you pour your marketing funds. And what you cannot measure, you cannot manage. For many vendors, identifying where to focus effort in the channel is impossible.

A Perfect Solution?

Vendors want to support their channel, but can be frustrated by limited resources and partners natural aversion to sharing information.

Wouldn’t it be great if vendors could run regular marketing campaigns directly (and securely) to resellers prospects and automatically route opportunities to the right partner? Well a solution is being rolled out by some international vendors which looks like an answer to a maiden’s prayer. The short video below (just refresh your browser if you cannot see it and make sure your speakers are on) explains all.

If you would like a demo or some case studies forwarded, please just get in touch.

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