What is Partner Channel Build?

1. Introduction

Partner Channel Build is the deliberate process of establishing an external network. This network of organizations helps a company sell, market, and support its products or services. It involves designing a structured partner program. This program outlines how external entities will engage with the company. The goal is to extend market reach and drive revenue.

For an IT company, this could mean recruiting value-added resellers (VARs). It could also involve bringing on managed service providers (MSPs). A manufacturing firm might build a network of distributors. They may also bring on independent sales representatives. Building a strong channel partner network is vital for growth. Effective partner relationship management ensures this success.

2. Context/Background

Historically, companies primarily relied on direct sales forces. However, market expansion became complex and costly. The need for broader reach grew. This led to the rise of indirect sales channels. Companies started to partner with other businesses. These partners could reach new customer segments. They could also offer specialized services.

The digital age further accelerated this trend. Cloud computing and subscription models emerged. These models require continuous customer engagement. Partners became essential for this engagement. They provide local support and deep market knowledge. A well-built partner channel is now a competitive necessity. It allows companies to scale efficiently.

3. Core Principles

• Mutual Value Creation: Both the company and partners must benefit. The relationship should be win-win.
• Clear Structure: Define partner types, roles, and responsibilities. A well-defined partner program is key.
• Enablement Focus: Provide partners with tools and training. Partner enablement ensures their success.
• Performance Metrics: Establish clear goals and measure partner performance. This drives accountability.
• Communication: Maintain open and consistent communication channels. This fosters trust.

4. Implementation

1. Define Partner Strategy: Identify target markets and customer segments. Determine how partners will help reach them.
2. Design Partner Program: Create program tiers, benefits, and requirements. Outline compensation models.
3. Recruit Partners: Actively seek out and qualify potential partners. Focus on alignment with your strategy.
4. Onboard Partners: Provide initial training and access to resources. Set up their partner portal access.
5. Enable and Support: Offer ongoing sales, marketing, and technical training. Provide dedicated partner support.
6. Manage and Optimize: Monitor partner performance regularly. Adjust the program as needed for improvement.

5. Best Practices vs Pitfalls

Best Practices (Do's)

• Invest in Partner Training: Equip partners to sell your products effectively.
• Offer Competitive Incentives: Reward partners for their sales and efforts.
• Provide Strong Marketing Support: Help partners generate leads through through-channel marketing.
• Simplify Deal Registration: Make it easy for partners to submit and track opportunities.
• Foster Co-Selling Opportunities: Work alongside partners on complex deals.
• Regularly Gather Feedback: Understand partner needs and challenges.

Pitfalls (Don'ts)

• Lack of Clear Strategy: Building a channel without a plan leads to inefficiency.
• Insufficient Partner Support: Partners will struggle without proper resources.
• Poor Communication: Unclear expectations lead to frustration.
• Channel Conflict: Direct sales competing with partners harms relationships.
• Complex Programs: Overly complicated programs deter new partners.
• Ignoring Partner Performance: Not tracking KPIs means missed opportunities for improvement.
• One-Size-Fits-All Approach: Different partners need tailored support.

6. Advanced Applications

Mature organizations use advanced channel build strategies.

1. Ecosystem Mapping: Identify all players in the customer journey.
2. Joint Solution Development: Co-create offerings with strategic partners.
3. Tiered Incentives: Offer varying rewards based on partner commitment.
4. Specialization Programs: Certify partners in specific product areas.
5. Predictive Analytics: Use data to forecast partner performance.
6. Global Channel Expansion: Develop strategies for international partner growth.

7. Ecosystem Integration

Partner Channel Build touches several POEM lifecycle pillars. It is foundational to Strategize, as it defines the go-to-market approach. It directly drives Recruit by attracting new partners. Onboard ensures partners are ready to sell. Enable provides ongoing support and resources. Market includes joint marketing efforts. Sell focuses on driving channel sales. Incentivize rewards partner performance. Finally, Accelerate continuously improves channel effectiveness. Effective partner relationship management ties these pillars together.

8. Conclusion

Building a robust partner channel is a strategic imperative. It allows companies to expand market reach. It also drives significant revenue growth. This process requires careful planning and execution. A well-defined partner program is essential.

Companies must invest in partner enablement and support. They must also maintain strong communication. By avoiding common pitfalls and applying best practices, organizations can build successful channels. This ensures long-term growth and competitive advantage.