“Entering new vertical markets or industries can be challenging because they require you to understand the dynamics of that industry.”
When Partners sell your solutions, your revenue, market share, and profit increases. As a bonus, Partners can give you access to market segments you would not otherwise penetrate.
Most technology companies maximize profit by maximizing revenue. This principle is the basis of digital economics. If adding more direct sales resources is not a practical approach to revenue growth, or if you need to diversify your business so you are less dependent on one revenue stream, an indirect strategy may be the best option for your business.
But how do you know you need to partner? Here are a few situations where you may need a channel to sell and support your business:
Doing business with channel partners is highly cross-functional in terms of the resources required for execution. Organizations have the task of orchestrating activities in Product, Sales, Services, Operations and Marketing, among others, to deliver the requirements for product readiness for the channel. Developing and successfully implementing a channel model right the first time is not a sales only initiative; it’s a company-wide effort.
Want to know more about starting your channel? Check out our eBook, The Ultimate Field Guide to Building a Channel.