When to use Channel Partners

Dave Gee has over 20 years of experience in sales and working with Channel Partners with the Fortune 500. He also teaches a course at the University of Wisconsin-Madison on Marketing Through Channel Partners in the Executive Education program.

When we refer to channel partners we are referring to indirect sales channels. This includes both agents and distributors. Agents typically do not take ownership of goods (e.g. real estate agent) whereas a distributor does take ownership (e.g. a beer distributor).

So, executive leadership has three main choices to make when determining Channel Partner options:

1) Direct Sales Channels
2) Channel Partners
3) Combination of Direct/Channel Partners

Advantages of Direct Sales Channels
A) Maximum control of activities
B) Accountability
C) Adaptability

Advantages of Channel Partners
A) Minimal overhead costs
B) Quick access to new markets
C) Scalability

So, when should companies use channel partners?
1) Firms seeking quick expansion into markets
2) Companies seeking to reduce direct salesforce but maintain market presence
3) New firms without the budget dollars to launch and maintain direct sales channels

For more information on channel partners see our recent article in Demand Gen Report.

If you would like to discuss your Channel Partner questions please contact Dave Gee directly at (262)949-4969.