Have You Considered A Channel Consultant?

Many technology companies today are engineering-driven - "build it and they will come." The good news is they build superior products; the bad news is they are often disappointed by their sales results. Research firm IDC says "at least 50% of a company's success revolves around go-to-market elements."

Technology vendors have multiple options when selling products into new and existing markets. One preferred method is to market through a reseller channel. But how can resellers insure that the companies whose products they select are viable, competitive, and will also achieve the desired financial results? You need to be certain that you aren't wasting time, energy, and money promoting the wrong product. In the channel, as in woodworking, there's an old phrase, "measure twice, and cut once," meaning that planning is every bit as important as execution.

Enter The Channel Consultant
Channel consultants provide a neutral and experienced source to effectively connect vendors, VARs, integrators, and distributors. Channel consultant duties include planning new channels, developing marketing materials, recruiting and training resellers, and creating channel programs. Consultants can also perform assessments of existing channels and develop plans to enter them.

A typical channel consultant has been working with channels for 10 years or more, many by building a channel sales and marketing team for a manufacturer. A good consultant will learn about the vendor's products and how they fit in the market. For new products, the consultant will define a receptive market and understand what resources the vendor is willing to commit to promoting the product. A channel consultant should offer a holistic view because it has seen the business from vendor, partner, OEM, distributor, and even end user perspectives. Many consultants have studied the successes and failures of companies and product launches, so leveraging their experience can save you time. (Basically, they've seen all the mistakes at least once.)

A channel consultant works with both resellers and vendors to find the best fit. As a reseller, you need to know that the products you carry are in demand by your end users and provide the necessary features, performance, and support. How do you choose a vendor that will work with you and support you through product introduction, initial sales calls, order placement, delivery, and customer support? And how will you obtain the necessary margins to achieve the desired financial results from the relationship?

Consultant Can Help VARs Reduce Risk
Before starting to recruit channel partners, the channel consultant should have done its homework about a vendor or product to represent. The consultant will work with the reseller to develop a sales strategy and even identify potential markets to attack, and it will work with the vendor in development of their own channel strategy. This way the consultant can be confident the company is viable and committed to the success of the channel. The consultant's reputation is on the line with the channel partners that it introduces to the vendor. A good channel consultant may base a portion of its fee on the financial results achieved from the selected channel.

It's the vendor's responsibility to present a complete product to the reseller, so the vendor needs to prepare answers for all possible questions. This will reduce the time that a reseller spends gathering information and evaluating a product's potential.

Launching a new product is a risky and resource-consuming venture. For most companies, launching a new product is like taking off in a plane - you've got to achieve enough momentum before you run out of runway, or it's crash and burn. By using a channel consultant, the vendor can reduce the time and expense to develop sales traction by leveraging its experience developing sales channels. As a reseller, a channel consultant can help mitigate your risks in selecting a vendor to partner with and whose products you promote. It's a win-win for both vendor and reseller.