The Art of Channel Management – Deal Registration (DR)

The Art of Channel Management – Deal Registration (DR)

This seems like the next evolution in our series of “the Art of Channel Management”. How do we grow and partner to resell our products? At its most rudimentary level, how do we effectively manage and grow multiple partners and multiple locations, across multiple verticals? The answer is so simple, a common platform for everyone to communicate. It blows my mind how many firms really miss the boat when it comes to this very simple logic. A very important component of this equation is “rules of engagement”. Laws in how we communicate effectively, that are followed to the extreme. Most importantly, review back to my past couple of blogs regarding partnership and trust, from both the manufacturer and resellers/agent. This is paramount. If one fails, the program is broken, there must be buy in at the executive level and engagement from everyone underneath to make it successful. The Art of Deal Registration could be a series of blogs all by itself. There are many pitfalls, traps and mistakes that are made regularly. Egos have no place in successful DR but often challenge its base foundation, and typically egos don’t engage in any partnerships because they lack the basic forms of partnership, trust and sharing. I speak with very intelligent Channel Managers who make, in most cases, very similar errors when trying to implement these programs. When DR is executed perfectly, magic occurs. You have solid communication and understanding of a healthy sales pipeline, hundreds if not thousands of qualified indirect sales agents selling nationally or internationally and competing firms evolve into trust partners that help each other to effectively close business and hence, true partnership is formed. DR is a serious tool in not only in channel management but also channel acquisition, because top performing resellers work best with protected, high margin opportunities and without channel conflict.

The Art of Channel Management – Partnering

This piece is going to be a bit fluffy and general but it’s meaning in most cases is truly lost. What does “the indirect sales channel” mean to you and your company? A quick, crude definition to “the indirect sales channel” is an alternate means to provide your companies products and services to prospective customers that you typically “would not” have immediate sales access to or with. In basic terms this is partnering at its most rudimentary level. Partnering is another word that is used loosely and thrown all over the place in meetings, business deals, life. My most important “partner” in my life, is my wife. I share everything with her, all my ambitions, my failures, my goals, my achievements. We discuss important family business and make mutual decisions. Bottom line is we have “trust”. Trust is the most important piece to any “partnership”. So why do so many partnerships fail? Most lack good communication, honesty, solid morals, and a plan. They lack trust. These are the most important features in building a sound, long term trust partnership. Applying these basic principles will strengthen your relationships with your partners and will allow to assemble a solid “indirect sales channel”. I know this all sounds so wishy washy but in your next attempt to partner with another company with the purpose of exchanging leads, sales opportunities, referrals, etc…apply the theory of “trust partnership”. Include in your dialog with your potential partner – trust, value, communication…I guarantee you they will listen. Good luck and good selling!

The Art of Channel Management, Part II.

The Art of Channel Management, Part II – Reseller Loyalty! Every big name technology manufacturer in the market today has a “channel marketing plan” in place. Most are only interested in that elusive large target called the SMB space. Everyone is looking to secure better market share, adding customers and brand loyalty. Manufacturers understand that this space is “owned” by small resellers, VARS, and System Integrators who have built valuable, long term, TRUST relationships with this target customer space. Manufacturers know that the quickest way to break into this space is to assemble an indirect sales force to introduce and evangelize their products and services. That’s where is segment will begin. How do manufacturers keep resellers interested enough to market their product at the top of their arsenal of products and services? What gets resellers excited and keeps them loyal? I could discuss this subject for hours, so here are a few key items that VARS attracts and retains VAR focus. 1) Margin – If they cannot make money, they cannot sell the product. Unlike larger players who can take a loss in one area to keep customer loyalty, smaller VARS cannot as they need margin on every deal to survive. 2) Zero channel conflict – meaning, having a strong plan in place that “protects” VARS from competing against each other and secures margin and customer loyalty. Wasted time evangelizing products and services that do NOT result in a sale is the quickest way for a reseller to remove a manufacturer from their line card. 3) Product worth – The product better have merit and actually be all it can be, and most importantly SUPPORTED unconditionally via the manufacturer. This is huge! Reseller loyalty is something of a lost attribute, with manufacturers constantly changing their Channel Programs, this is one of the toughest areas in technology to maintain mind share. My name is Scott Sabellico and If you would like to discuss this further please feel free to contact me at electronic_attic@hotmail.com.

The Art of Channel Management

The Art of Channel Management. Many companies claim to understand “Channel Management”. There are groups dedicated to this model on Linked In and other various Social Media sites. Why is Channel Management so misunderstood and why is it so hard to master? The answer lies in the individual/s that are creating the channel sales model for his/her company.  If these individuals have never worked in the channel, meaning worked for a Value Added Reseller or a systems integrator and manufacturer than how can they possibly understand the entire channel ecosystem? Technology manufacturers constantly walk the line of supporting their group of indirect resellers and not, giving full attention and possibly competitive advantage to it’s direct sales force. This has been going on for years, we all know the big name players but there is also a slew of startup’s that want all the benefits of a “dedicated sales channel” but don’t truly dedicate themselves to this model. I have personally worked both sides of the channel as a small, value added reseller to the opposite side of the spectrum, working for one of the largest software manufacturers of all time. In between these two areas lies another factor of the equation, not well known but widely used by both VARS and Manufacturers and these are Marketing Rep Firms. These groups work directly with manufacturers and introduce these manufactures to qualified resellers to sell the products to the final end to this equation, the end user.  There are so many steps and mis-steps throughout this process so beware the get rich quick firms, Channel Management is NOT a get rich quick model rather a supportive model that will enhance your current direct sales teams efforts and build a significant pipeline. This process does not happen overnight, and should be not viewed as a quick process by any means. This is where most manufacturers fall way short. They implememnt a program that does not make sense to the reseller, meaning they can’t make money and can’t support the product long term.  I have personally witnessed many failures and many sucesses with this model. My name is Scott Sabellico and I would be happy to discuss this subject with anyone that is interested as this is the tip of the iceburg concerning ” The Art of Channel Management.” I can be reached at via email at electronic_attic@hotmail.com