What is Channel Worthy?

1. Introduction

Channel worthy describes a product or service. This offering is well-suited for indirect sales channels. It means partners can sell it effectively. Such products provide good profit margins for partners. They also meet a clear market need. Vendors design them for partner success.

A channel worthy offering is easy for partners to understand. Partners can then deliver these solutions to end customers. For instance, a cloud-based IT application often fits this description. Its recurring revenue model benefits the entire partner ecosystem. Specialized manufacturing equipment is another example. This equipment often requires specific installation services from partners.

2. Context/Background

Indirect sales channels have a long history. Early examples include distributors for hardware components. These partners extended market reach for vendors. The concept of channel worthy evolved from this need. It focused on products suitable for partner sales. Today, a strong partner program is essential. It supports the sales of these specific offerings. This approach drives successful channel sales growth.

Many vendors rely on partners for market expansion. They need products that partners can sell easily. This ensures efficient resource allocation. It also expands a vendor's geographical footprint. Identifying channel worthy products is crucial today. It directly impacts the success of the partner ecosystem.

3. Core Principles

• Partner Profitability: The product offers attractive margins. Partners earn good money selling it.
• Market Demand: A clear customer need exists for the product. It solves a common problem.
• Simplicity for Partners: The product is easy to understand. Partners quickly grasp its value.
• Scalability: Partners can sell and support the product widely. It reaches many customers.
• Recurring Revenue Potential: Products offer subscription or service renewals. This creates ongoing income for partners.
• Differentiation: The product stands out from competitors. It has unique selling points.

4. Implementation

1. Product Assessment: Evaluate current products for channel suitability. Check market demand and partner margins.
2. Partner Profile Definition: Identify ideal partner types for the product. Consider their expertise and customer base.
3. Enablement Content Creation: Develop training materials and sales tools. Ensure easy access via a partner portal.
4. Pricing and Margin Structure: Design a competitive pricing model. Ensure attractive profit margins for partners.
5. Pilot Program Launch: Introduce the product to a small group of partners. Gather feedback and refine the approach.
6. Full Partner Program Integration: Incorporate the channel worthy product into the main partner program. Support it with partner enablement.

5. Best Practices vs Pitfalls

Best Practices (Do's)

• Offer strong margins: Motivate partners to sell your product.
• Provide clear training: Ensure partners understand the product well.
• Simplify deal registration: Make it easy for partners to log opportunities.
• Support co-selling efforts: Work alongside partners on key deals.
• Invest in through-channel marketing: Help partners promote the product.
• Gather partner feedback: Continuously improve the product and program.

Pitfalls (Don'ts)

• Low partner profitability: Partners will not prioritize selling.
• Complex product offerings: Partners struggle to explain or sell.
• Poor enablement resources: Partners lack the tools to succeed.
• Channel conflict: Direct sales compete with partners.
• Lack of market demand: Partners cannot find customers.
• Ignoring partner input: Miss opportunities for improvement.

6. Advanced Applications

1. Vertical-Specific Offerings: Develop channel worthy products for niche industries.
2. Service Wraps: Create partner-delivered services around core products.
3. Embedded Solutions: Integrate products into partner solutions. This creates new value.
4. Solution Bundles: Combine multiple products into joint partner offerings.
5. Subscription-Based Models: Transition products to recurring revenue streams. This benefits partners.
6. Global Expansion: Adapt channel worthy products for international markets. Use local partners.

7. Ecosystem Integration

Channel worthy products are central to a thriving partner ecosystem. They inform the Strategize phase. Vendors identify market opportunities for partners. During Recruit, vendors seek partners suited to these products. Onboard focuses on quickly preparing partners. This includes product training. Enable provides ongoing resources. This ensures partners can sell and support the product. Market uses through-channel marketing for promotion. Sell is where partners use deal registration to close sales. Incentivize rewards partners for selling these profitable products. Finally, Accelerate focuses on scaling partner success. This is done with effective partner relationship management.

8. Conclusion

A channel worthy product is vital for indirect sales success. It offers clear benefits to both vendors and partners. Vendors expand market reach. Partners gain profitable revenue streams. Careful planning and strong partner enablement are key.

Creating channel worthy products strengthens the entire partner ecosystem. It ensures partners are motivated and equipped. This leads to sustained growth and competitive advantage. Investing in channel worthy offerings is a strategic imperative.