What is Resell Motion?

1. Introduction

The Resell Motion is a fundamental go-to-market strategy. In this model, a vendor sells its products or services directly to a partner. The partner then takes ownership of these offerings. They subsequently sell them to end-users. This approach allows partners to set their own pricing. They also manage the full sales cycle.

This strategy empowers partners. They handle billing, customer support, and direct client relationships. Vendors often support these partners with resources. These resources are typically available through a partner portal. The Resell Motion is vital for expanding market reach. It uses the existing customer base and expertise of channel partners.

2. Context/Background

The Resell Motion has deep roots in commerce. It originated with traditional distribution channels. Think of distributors buying goods from manufacturers. They then sell these goods to retailers. This model has evolved significantly. It is now central to modern partner ecosystems. For example, in IT, software vendors rely on resellers. These resellers bring solutions to diverse business clients.

This strategy matters because it scales sales operations. Vendors gain access to new markets without direct investment. Partners benefit from selling proven products. It creates a mutually beneficial relationship. A strong partner program is essential for success here. It ensures clear rules and support for all parties.

3. Core Principles

• Ownership Transfer: The partner legally owns the product or service. This happens after purchase from the vendor.
• Price Autonomy: Partners set their own selling prices. This allows for market flexibility.
• Customer Relationship: The partner directly manages the end-customer relationship. They are the primary contact.
• Sales Cycle Control: Partners manage the entire sales process. This includes prospecting and closing deals.
• Billing and Support: Partners handle billing and often provide first-line customer support.
• Vendor Support: Vendors provide tools and training. This supports partner success.

4. Implementation

1. Define Partner Profile: Identify the ideal channel partner for your product. Consider their market reach and technical skills.
2. Develop Partner Program: Create clear tiers, benefits, and requirements. This attracts suitable partners.
3. Recruit Partners: Actively seek out and engage potential resellers. Explain the value proposition clearly.
4. Onboard Partners: Provide comprehensive training and resources. Ensure access to the partner portal.
5. Enable Partners: Offer ongoing sales, marketing, and technical support. This includes partner enablement materials.
6. Manage Performance: Track partner sales and provide feedback. Adjust support as needed.

5. Best Practices vs Pitfalls

Best Practices (Do's)

• Clear Margins: Ensure competitive and attractive profit margins for partners.
• Strong Enablement: Provide excellent sales and technical training.
• Dedicated Support: Offer responsive support channels for partner queries.
• Protected Deals: Implement deal registration to prevent channel conflict.
• Marketing Resources: Equip partners with effective through-channel marketing materials.
• Regular Communication: Maintain open and frequent dialogue with partners.

Pitfalls (Don'ts)

• Poor Margins: Partners will not prioritize products with low profitability.
• Lack of Training: Untrained partners cannot effectively sell or support products.
• Channel Conflict: Competing with partners directly erodes trust.
• Complex Processes: Overly complicated systems deter partner engagement.
• Insufficient Marketing: Partners struggle without ready-to-use marketing tools.
• Neglecting Feedback: Ignoring partner input can lead to disengagement.

6. Advanced Applications

1. Specialized Resellers: Targeting partners with specific industry expertise. For example, a software vendor partnering with a healthcare IT specialist.
2. Value-Added Resellers (VARs): Partners who bundle additional services. They integrate the vendor's product into a larger solution.
3. Managed Service Providers (MSPs): Resellers who offer ongoing management of the vendor's solution.
4. Global Expansion: Using local resellers to enter new international markets. This navigates cultural and linguistic barriers.
5. Solution Bundling: Partners combine multiple vendor products or their own services. They create unique customer solutions.
6. Subscription Reselling: Partners manage recurring billing for software-as-a-service (SaaS) products.

7. Ecosystem Integration

The Resell Motion is integral to the entire Partner Ecosystem Operating Model (POEM) lifecycle.

• Strategize: Defining the ideal reseller profile and market segment.
• Recruit: Actively identifying and bringing in suitable channel partners.
• Onboard: Equipping new resellers with necessary product knowledge and tools.
• Enable: Providing ongoing partner enablement resources and training.
• Market: Delivering through-channel marketing materials for partners to use.
• Sell: Supporting partners in their sales efforts, often through co-selling initiatives.
• Incentivize: Structuring commissions and bonuses to reward reseller performance.
• Accelerate: Optimizing processes and support to boost partner sales velocity.

8. Conclusion

The Resell Motion remains a cornerstone of successful partner ecosystems. It allows vendors to scale efficiently. It empowers partners to deliver comprehensive solutions to their customers. Effective execution requires clear strategies and strong vendor commitment.

A well-managed partner program with robust partner enablement is key. It drives partner success and expands market reach for both parties. Understanding and optimizing the Resell Motion is crucial for any organization building a powerful partner relationship management strategy.