Scaling your revenue isn’t the easiest thing to do when your time and resources are limited. While hiring more sales representatives is an option, you might not have the resources to expand your sales team right now. Fortunately, there are other ways companies can increase their revenue, and one popular option is a channel partnership. To learn more about what is a channel partner and how can they help your business read on.
What is a Channel Partner?
A channel partner is an individual or organization that promotes and sells products and services for a technology company or vendor. Companies that use channel partners often sell hardware, software, software as a service (SaaS), or cloud computing solutions. It’s important to note that even though a channel partner sells products for a specific vendor, they are an independent company.
The Different Types of Channel Partnerships
There are several types of channel partnerships, but the most commonly accepted ones are Value Added Resellers (VAR), Managed Service Providers (MSP), Systems Integrators (SI), distributors, and IT consultants. We’ll break these down further in a future post, but for now this is what you really need to know about channel partnerships – Partnering with another company gives you the ability to provide your clients/customers/users with a product or solution you didn’t have previously. Each type of partnership mentioned here also has varying degrees of customer service involved from one-off sale to ongoing support, but the main goal is the same – To enhance your current business by adding a new product/service or improving one you’re currently offering.
Why Would You Use a Channel Partner?
There are many reasons why a company might want to establish a channel partnership. One of the most important reasons is that entering into a channel partnership can help a company scale their revenue. This is largely because your partner promotes your product or service to their own customers, which can lead to more sales. Partnering with a respected brand can also help you expand your offerings into new markets more easily. If your partner is a recognized name in their industry and recommends your product, their customers will have more confidence in your offerings and be more likely to purchase your product or service. As an added bonus, your channel partner can provide you with sales and marketing resources that can help you generate more leads and conversions, leading to increased sales and revenue.
What Makes a Good Channel Partner
A good channel partner will already be well-known as an industry leader/expert within a market. Their product or service will be proven with a good success rate, and they will have case studies and/or testimonials to back up their claims.
Good channel partners are also not just looking to make quick sales – they are looking for strategic relationships that can evolve and grow for the betterment of both themselves and the companies they have partnered with. In other words, they understand that working together should not be a one-sided venture. They will provide you with the materials you need to help your customers while at the same time working with you on your messaging and marketing to achieve more sales. Finally, a good partner understands the customer is the primary focus because the goal of both companies should be to give the end user the best experience possible while providing the real solutions they need.
How to Structure a Channel Partnership
When it comes to structuring your channel sales partnership, you have several different options, including:
- You sell through your partner. In this case, your partner acts as a middleman and distributes your product to buyers.
- You and your partner sell together. Typically, your partner will offer your products as an upsell to one of their own.
- Your partner sells your products for you. They can do this by introducing your products to new markets or adding your service to their own offerings.
It’s important to note that you don’t have to stick to just one method. You just need to consider what your specific needs are before deciding which one will work best for your business.
Channel Partnerships with SiteLock
Establishing a channel partnership with SiteLock provides a valuable opportunity to protect your customers from ever evolving cyberthreats, while boosting your company’s reputation and revenue.