TLDR: While many argue working with the channel just increases your price on product, the channel partners bring tremendous value as ears on the ground with the customers and prospects to get your product(s) in their from a trusted source. Don’t discount their value.
In today’s sales world you may be forced to work with and through partners to gain access to clients and customers. Partners can be large global players like CDW and SHI, and others can be small regional players like Gotham or SafariMicro. These are organizations that help provide value to customers and not solely sell one product but multiple solutions and will source solutions to the customers problems for them.
As a sales rep your goal is to build relationships with the partners and their reps in order for them to push your product in the back end to their customers/prospects. It is a multithreaded strategy so that if the partner hears from their customer that they have a specific project they will be working on next year, they can recommend connecting them with you to conduct a product overview and help facilitate the opportunity. Likewise if you are speaking with your account or a prospect, you can work to facilitate a new partner relationship with the customer/prospect.
Typically a channel partner will like to add a 10-25% margin on top of your product’s costs. While some may argue that is a hefty price for passing papers, I disagree. No relationship starts off even. One person has more value to bring to the table upfront, but over time the most successful relationships are where both bring value to the table. If you are newer in working with the channel, I cannot stress enough to build relationships with the partners. Take them out to eat, for drinks, text them, call them, bring them opportunities because they will bring them back to you in the future.
For example if you are working on an opportunity with a prospect that is not using a channel partner currently. You could share “Hey we really like working with so and so, they are extremely fair to their clients, go above and beyond to help negotiate fair pricing and will work to make sure your needs are met, do they sound like a great partner to work with?” From there you’ll make an introduction to that partner you’ve built a relationship with. If your working at a firm that sells multiple products, you now have a future opportunity to sell those additional products to that new customer and you have a partner that will look to push your products more than others. One hand scratches the other.
Another great aspect of working with the channel is that they are constantly having and holding events where you can be in attendance and invite prospects/customers to. This way you can have face to face and really bridge the gap and move your opportunities along.
If you’re working at a startup that does not have a deep channel presence or is just entering into this phase of the sales world, having battle cards ready for your partners is paramount to their success. The partners are reached out to on a daily basis by dozens of vendors to have them push their product(s), why should the partner risk their relationship with a customer for your unknown product? You need to educate, train, and make it worth the partners time and add value.
Learn about some of the partners we wrote about in this article here
