CHANNEL MANAGEMENT

Treat your channel partners the way you would a key account. Properly managed they can generate substantial, recurring revenues.

After a channel has been developed, it has to be actively managed. In today's environment, there is nothing easier than signing up resellers. They will come knocking on your door via your website, or you will find them through tradeshows, prospect lists that are available through export promotion agencies, etc. The real challenge is getting the channel to perform. As discussed previously, absence does not make the heart grow fonder, and a channel that is ignored will quickly wither and die. Some of the elements of an effective program are:

Sales & Technical Training

Even if the technology seems to be fairly easy to understand, and the reseller does not feel a need to spend time on sales and technical training, there are many benefits to both the vendor and the reseller. The reseller will learn more about how the product works, how it is sold, and how it is used by clients in the domestic market. The vendor will benefit from developing a stronger relationship with his new business partner, getting input regarding features that might make the product better or easier to sell in the target market, as well as giving more people in the organization exposure to the new international partners.

Partner Manual

This is a critical document that outlines all of the company policies, order procedures, payment process, contact information for tech support, price list, product overviews, etc. It should be designed in a way that reduces or eliminates most of the questions that might come from international partners.

Sales & Marketing Programs

Let the channel benefit from everything you are doing at home. Resellers and distributors will rarely have a marketing staff or creative people that can create materials from scratch, nor will they have the same economies of scale that you do. Remember that you are likely to be one of 20 or 30 products they are selling, so make it as easy as possible for them to sell yours.

Sales & Marketing Reports

Most channel partners dislike filling out monthly reports, because they see it as administrative busywork that takes time away from selling and supporting products. However, they are an essential element for a vendor in monitoring, managing and motivating a channel.

Programs & Incentives

There are a number of programs that can be implemented to promote your product, but they will vary based on the complexity of the technology, the sales cycle and the markets in which you are active. Some of the more common programs are sales contests, quota clubs and spiffs (payments usually made directly to a reseller's salespeople for the sales they make).

Site Visits

A vendor should visit his key partners every year. The visits improve the relationship, provide an opportunity to meet with more people in the channel partner's organization, and in many cases can be used for sales calls on key accounts.

Partner Conferences

When the channel becomes large enough, an annual conference should be scheduled. They help create a feeling of community, and are an excellent forum for presenting new versions of the product, as well as getting feedback (and criticism!) that isn't provided in one-on-one phone calls and e-mail exchanges.