MARKETING PARTNERS

Channel partners control the sales process. They make the sale, install the product and provide support. Marketing partners influence the purchase decision, but don't control the sales process.

Referral Agents
Typically individuals who have good contacts in large organizations, and can arrange a high-level introduction. They rarely acquire any product knowledge, and do not actively participate in the sales process.

Advantage:
Low cost of marketing, since they typically work on a referral fee that is paid only if a sale occurs

Disadvantage:
Don't have the horsepower to help close the deal, so once the introduction is made you are on your own


Marketing Agents
More sales-oriented organizations do this for a living, but do not have a technical support infrastructure to handle installation and after-sales support.

Advantage:
Will usually go through enough product training to make the initial presentation and qualify the prospects, so you get involved when there is a documented need.

Disadvantage:
A higher commission than referral agents, but you still have to close the sale, handle the installation and provide after sales support

Systems Integrators & Consultants
Integrators and consultants work with their clients to provide a total solution, and can include specific products when they are appropriate.

Advantage:
Have the credibility to recommend include your product in a solution, so a sale is more likely to occur

Disadvantage:
Not product focused, so volumes will be low. They also tend to be involved with large projects that might require customization of your code, which could lead to significant hidden costs

Hardware Bundling
Hardware vendors will include software products when they think the added software can help them sell more boxes.

Advantage:
Could lead to huge volumes

Disadvantage:
Hardware vendors are extremely price conscious, so the per unit price is normally very low