What are the advantages of selling through channel partners?
What are the advantages of selling through channel partners? admin
Higher revenues: A successful channel program will produce higher revenues. Good business partners (resellers) tend to be consistent, year in, year out, growing revenues. Once you are part of their core business, they produce a lot of revenues with little effort and support from you.
Shorter time-to-market: It is the partners’ relationships with their existing customers that drive the initial transactions, much more than the technology. So the key is to recruit resellers that already have customers needing your product. If you are not recruiting partners that can close their first sales from their existing client base, it is unlikely the relationship will work.
Better margins: When the channel works the way it is supposed to work, your partners do their own sales and marketing, and provide first and second level tech support. This means that the revenues flowing back to you are almost pure margin.
The combination of increased revenues, quicker ramp-up and better margins will have a big impact on the value of your company, whether you are looking for funding, or planning to sell your business.