Channel Marketing: A Strategic Approach to Business Growth and Career Stability to Ride Out the Technology Tsunami

Channel marketing is a strategy used by businesses to reach customers through independent marketing platforms or channels. Alternative channels may include retailers, resellers, online marketplaces, consultants, integrators, and third parties. Channel partners either supplement or replace a supplier's direct sales force. Channel marketing aims to find the most effective and efficient pathways to get products and services in front of the right customers at the right time.

For example, Microsoft uses channel partners like Accenture, Capgemini, and Cognizant to sell its software products and services. Similarly, Cisco, a leading IT and networking supplier, uses channel partners such as CDW and Insight.

Many other tech companies are adding channel marketing to their business strategies, creating a rapidly expanding network of consultants, brokers, value-added resellers, aggregators, and master distributors.

The growth of channel marketing within the tech sector has been exponential. By 2021, the channel partner concept had expanded to 63.5% of IT suppliers, and sales by third parties now comprise around 75% of the world’s technology sales and consumer market. [Zendesk, Forbes]. The technology channel marketplace has become a large ecosystem with many participants, publications (such as Channel Vision and Channel Futures), and regular industry trade shows like Channel Partners Conference and Expo.

Channel marketing benefits suppliers, customers, and partners.

Channel marketing allows suppliers to extend their sales and distribution and penetrate new industry segments without substantial investments. It also enables them to leverage their partners' market knowledge and customer relationships.

For customers, it often means increased convenience and lower costs. They can discover diverse options more quickly by working through a channel partner. Using the channel partner’s volume buying power, they can frequently secure better value and more favorable terms and enjoy better after-sales support and service.

Channel partners benefit by helping smooth the increasingly complex technology procurement process without adding additional costs. Partners also supply expertise and resources to develop more beneficial long-term client relationships.

Channel marketing is set to become even more significant as technological solutions proliferate, evolve more quickly, and become increasingly complicated. The International Monetary Fund predicts that AI will impact 40% to 60% of jobs!

Dynamic industries offer great opportunities but can be unstable places to work.

The tech industry, while snowballing at the macro level, is becoming increasingly unstable for individual companies and their employees. Marketplace dynamics can create uncertainties in even the largest companies.

Rapidly changing technologies, shifting buyer preferences, economic and government uncertainties, and unforeseen events (so-called black swans) can force any organization to change its strategy and reconfigure its business operations. These can produce acquisitions, mergers, restructuring, force adjustments, and downsizing. As a result, layoffs and furloughs affecting thousands of tech employees are becoming annual events, frequently right before the holiday season.

Participating in channel marketing is an excellent way to mitigate some of the risks of being a tech professional. By aligning yourself with the right channel partner, you can diversify your skills across varying technologies and build relationships with multiple suppliers.

Is a career in channel marketing right for you?

Some suppliers and partners hire salaried employees for their channel programs like other companies. These jobs usually require prior industry experience, product, marketing, sales, or support backgrounds. You can locate current openings by searching the major employment websites. However, there is no evidence that these positions are less volatile than other tech jobs.

Many partner organizations also engage independent consultants. This is a good option if you already operate an independent business or are considering starting one. You can build your consulting business part-time by leveraging your relationships with friends, colleagues, and connections.

Business professionals don’t have to be tech gurus to become involved in channel marketing. That’s because channel partners and their suppliers will augment your staff to provide the technical, marketing, sales, and support for clients you introduce. Business and financial consultants, associations, real estate, mortgage, recruiters, HR professionals, and networkers are gaining added revenue streams by working with channel partners to help their clients get better, lower-cost solutions.

Some partners allow you to earn monthly residual income by placing long-term service contracts. This is an added benefit because it diversifies your revenue stream and produces an even more independent lifestyle.

Becoming a channel partner may be especially attractive if you are looking for a side job, want to supplement your retirement, or have the necessary resources to tide you over while you grow your income.

Whatever option you choose, look for an established partner with a strong supplier network, good training, and support.

Since scams are rampant today, be wary of anyone asking for your confidential information, a monetary investment, membership fee, or subscription.

Want more information?

Please contact me to learn more about how you can participate in the channel marketing movement and earn additional income. There is no cost and no obligation to find out.