What to Call It: Partners, Alliances, Channels?
Jay Greenwald
Fractional Strategic Partnership / Sales Leader for SaaS / Cloud Software | Relationship-Builder
I have been selling enterprise software through partners for more than 20 years in the U.S. and in 55+ countries all over the world (Europe, Middle East, Africa, Latin America, East Asia and Australia) and have lived in London, Paris and Singapore. Of all the jobs I have had and projects I have performed, what is the best general term for this kind of selling large enterprise software software?
I have heard it referred to partners, channels, alliances, reselling, distributors and even OEMs, but what is the best term for referring to all of them collectively? For example, the last software company I worked in, I was starting up a partnership, alliance and international expansion programs from scratch. My title was Director of Strategic Partnerships (add "International" at the end). No mention of reselling, channels, alliances even though I developed a partnership program with all of these types of companies. Here are some other ideas for the general name for all of this kind of selling:
- Channels - this term seems to imply high volume, whereas the kind of enterprise software I'm talking about have relatively high prices ($100K+ and above), so the monetary value of the deals is larger and the quantity of them is lower.
- Indirect Sales - yes, this kind of selling is certainly not direct sales, but I haven't heard this term used for at least 15 years!
- Distributor - this seems to be a kind of selling where the entity doing the reselling takes legal possession of the goods from the producer, then sells it to a separate end-user entity. For enterprise software, this term doesn't seem to capture the typical case of a consulting firm adding value to enterprise software by bundling their services (planning, configuration, implementation, ...) to create a solution for their end-users
- Reseller and Referral Partners - "Reseller" in this context is very similar to Distributor, where the reseller take possession of the software or has the right to license it and sell it a third-party. "Referral" means just that; a partner introduces the software vendor to an end-user client and the software vendor does the selling and closing. Neither one of these terms is general enough.
- Alliance - this is a component of the kind of selling we are discussing here, but this term seems to have a connotation of the partnering firms being in completely different lines of business, where both sides are broadening the kind of customers they want to sell to. Imagine enterprise software bundled with the programming / configuration provided by one of the technology or Big 4 consulting firms (Accenture, PwC, Deloitte, E&Y, etc.); this is an alliance. This term doesn't capture a major part of the kind of selling we are discussing.
- OEM (which originally referred to "original equipment manufacturer.") No, software is not manufactured, but in the software world "OEM" means one vendor bundling another vendor's software in their product, usually without revealing the name of the bundled software, called "white labeled." Again, this refers to a specific type of arrangement rather than being a general term for all partner selling.
This leaves us with the word "Partner" and its related word: "Partnership." Reflecting on my recent title when my job was to start up the entire program for a software vendor, this seems to be the best term to refer to all the categories of reselling enterprise software discussed in this article. A title using some variation of "Strategic Partnerships," seems to be the best.
Husband. Dad. VP of Business Development @ Corpay. Helping orgs. modernize their spend management. Pilsner/Kolsch drinker, ex Footballer?? half decent Golfer????
3 年Great post Jay!