Debunking Myths about Channel Sales: Part 1
Brian Burriss
Partner Ecosystem | Strategic Partnerships | Channel Management | Product Marketing | Channel Sales | Product Management | AI and Gen AI, Cybersecurity, 5G & Connected Hardware
Entering the Channel ecosystem often mirrors an exciting adventure, filled with mythical creatures and unexpected challenges. Your mythical creature accompanying you on this quest is full of excitement at the opportunity and may also be carrying with it myths and misinformation.?Today, we embark on a journey to shine light on some of the myths surrounding channel sales.?As I began to write this article, several examples of myths came to mind and during the process I made a list of many more.?For that reason, I have decided to break this up into multiple articles, so this is part 1. ?In this series, I will reveal common misconceptions about the channel ecosystem that could be holding you back and provide insights to help you navigate your journey more effectively.
Myth #1: The Profit Margin Will Drive the Selling Partner
The first myth we encounter is the belief that selling partners will be drawn only by the profit margin your product offers. In truth, this notion is as fictitious as a unicorn's horn. If profit margins were the ultimate lure, only the highest-margin products would succeed, leaving the market a barren, one-dimensional wasteland.
In reality, there are a multitude of products sold every day, by selling partners, each with their unique margins. Countless factors and distractions exist within the channel. I have examples where some make as little as 3% and others more than 50% margin.?Chances are, there is a product in your sector that is paying more than yours.?They also look at things like the product's fit with their customer base, the level of support you offer, and the ease of doing business with you.
Myth #2: We have the best product that will drive the Selling Partners
Bearing the badge of “best in class” according to (Insert, Gartner, Forrester or research analyst of your choice) might make you feel invincible, and the most desirable product. However, in the realm of channel sales, this alone doesn't drive the selling partner to your door. They are bombarded with siren songs of the best product daily, with reports and specialized feature sets.?The result is it all becomes background noise and not much of a differentiator. ?While this can be a helpful marketing tool you need to demonstrate how your product delivers value to their customers and integrates with their existing portfolio to complement their offerings.
Myth #3: We just need to work with the Biggest Selling Partners
Relying on the mightiest selling partners to ensure your success is like expecting to ride on a griffin's back to reach your destination. While these partners do command expansive territories, many underestimate the effort and resources needed to secure their allegiance.
The misunderstanding is the time, effort and money it takes to get the attention of those sellers.?It is a crowded space, where many vendors are trying to place their product in and if you are lucky enough, it will require a lot more time and money to support it.?A better approach is to diversify your partner mix and work with different types and sizes of partners who can target different segments and niches of the market. You need to find partners who are aligned with your vision, values, and goals, and who can be loyal advocates for your product.
Building the relationship and providing support is the answer
Every segment of the channel landscape, whether you are selling hardware or software, cybersecurity, or connectivity, success in channel sales is like creating a complex tapestry. There are many threads, profit margins, marketing investments, competition, sales support, training and enablement and many more that intertwine to form the whole. There is one golden thread that binds and enhances the tapestry and that is the relationship and support you offer your selling partners. A robust, reliable relationship can withstand various challenges and will drive you and your partners to success.
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More myths around the corner
Myth #4 Now that we have partnered, I expect to see results in 30 days.?
The illusion of instant sales is prevalent, however it's not as simple as summoning a genie who'll grant your wish. A well-documented onboarding plan will help to set those expectations.?Once the partner has signed up, the hard work begins.?There are many steps that must happen to prepare the partner before the typical sales cycle begins.?My advice is to create your onboarding plan and review it with your selling partner and build into your expectation, time for the unexpected because it will undoubtedly take longer than you imagine.??
Myth #5.?I have just a few requirements before we begin.
From 30-page partner contracts, certification levels of sales and technical staff before selling, to a deal registration process that would make the DMV look easy.?I have seen all kinds of roadblocks for selling partners.?This can seem like the dark side of a fairytale, however, each of those are actual requirements with many more I could list.?I have coined the phrase "Friction-Free Selling" and I use it a lot. If I could waive a magic wand, how could we make the process easier and remove obstacles, making the journey more enticing for your selling partners.
Navigating the channel can feel like embarking on a journey through a mythical realm, filled with unknown creatures and hidden challenges. However, by dispelling these myths, avoiding common pitfalls, and fostering robust relationships, this quest can become a rewarding odyssey. The key to successful channel sales is in the authenticity of your product, the value you bring to your partners and customers and the alliances you build through relationships along the way.
This is the 7th in my series about the Channel and part 1 of the series on Channel Myths. ?If there is a topic about the channel ecosystem you would like me to write about, please leave a comment, I’m here to help.
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