Three steps for growing a successful indirect channel

by Eric Nitschke, Managing Director

Since 1992, Launch International has worked with channel groups from at least a dozen ISVs, distributors, and Fortune 50 OEMs, as well as solution providers. We understand both sides of the channel relationship. And we speak from experience when we say that channel marketing is one of the toughest jobs in tech marketing.

When we build plans for our clients, we use a simple approach: Recruit, Retain, Repeat. Often, our biggest challenge is getting clients to think through how much they need to invest to acquire, maintain, and grow a partner relationship. As you consider our three-step approach, think about how much you are willing to invest in your partners.

Step 1: Recruit
Clearly, recruiting partners is one of the first steps required for building a channel marketing program. Before you start, you need to review your company’s message to ensure that it’s two-pronged—targeting the market, as well as the channel. Without a doubt, you’re used to thinking about why someone would buy a solution or product. But you also must have clear reasons why a partner should choose to work with you. Chances are, your end-user message may not be appropriate for the partner audience.

One message that your recruiting campaign must offer: How the partner will make money. You must have clear, compelling value propositions about how you’ll help drive revenues. For example, offering services, such as marketing, financing, and sales support, can help a partner look much bigger and be able to attract a new level of customer. One of our clients links partners together—allowing them to position their products into a greater solution. And that helps land bigger wins. If you’re helping partners in these and other ways, communicate that value in your recruiting efforts.

Step 2: Retain
You know that clichéd statistic about the cost of acquiring new customers versus retaining existing ones? It applies in the partner world, too. Once you’ve recruited your VARs, do whatever it takes to keep them. And, don’t assume that the strength of your product will do it. Provide true solutions that partners can easily sell to their customers. And, be sure to pass along quality leads.

Of course, keeping every partner may not make good business sense. A partner that only makes one or two sales a year may not be profitable to administer. In fact, one of the most common scenarios we encounter is the old 80/20 rule, where 20 percent of partners are driving 80 percent of revenues. If that’s happening in your channel, figure out why. Chances are, your “go to” partners are the ones with the lion’s share of business, and that’s great. But don’t neglect the other 80 percent and their potential selling power. Develop an alternate strategy to nurture those partners and grow their sale share.

Step 3: Repeat
This third step is where many programs fall short: The consistency and discipline needed to continually attract and retain VARs. How can you ensure that your program remains strong? First, stay in touch. Implement a newsletter or other regular communication vehicle. Make sure that VARs know about your successes—and each other’s. At Launch, we find that case studies are a great vehicle for spreading the good news about major wins. And, of course, in-person events, such as conferences and seminars, provide excellent “face time.”

If you aren’t certain that your channel marketing program is 100 percent on track, contact Launch International. At no cost or obligation to you, we’ll perform a Channel Tools Analysis to assess the quality and approach you’re currently using. And, we’ll give you actionable suggestions for improvement.

To learn more, contact us at info@launchintl.com.