Dec 18, 2006
Channel Tips:
2007 Channel Success: What You Need To Do NOW!
PART 2
By Greg Nutter
In our last column, we introduced the idea that NOW is the time when you can have the greatest impact on your 2007 channel performance, particularly when addressing major problems such as:
1) I don’t have enough resellers
2) My resellers don’t sell enough
3) My channels cost too much
Previously we talked about not having enough resellers. This week we’ll explore what to do when resellers aren’t “reselling”.
My Resellers Don’t Sell Enough
As explained earlier, there are four stages involved in building successful partner channels:
- Program Definition
- Recruitment and Contracting
- Program Launch
- Program Management
When resellers don’t sell, first ask “Did they ever sell?” If you answered “YES”, then the problem is often related to Program Management. If the answer is “NO”, then the issue is likely linked to an earlier stage. Let’s explore two most common reasons why channel partners don’t sell.
A) Wrong Partner Profile:
An important output from the Program Definition stage is a Partner Profile which tells you what kind of partner to recruit, and equally as important, what kind of partner not to recruit. Key elements include skill sets, customer profiles, sales cycle profiles, whether they sell applications or infrastructure, and the degree of synergy with your offerings. Failure at the Partner Profile level normally occurs because:
i) the Profile was incomplete or missing important criteria;
ii) it was incorrect or included assumptions later found to be untrue; or
iii) it was simply ignored when signing up the resellers.
Fortunately it’s possible to help partners who aren’t too far from the ideal profile become successful. However, for partners with significant gaps, no amount of time, money, or divine intervention will get them to produce.
B) Incomplete Program Launch
It’s interesting that when a company hires a direct rep, they know it will take at least 3 months of daily learning before they’re productive. However, when the same company signs a reseller partner, they expect them to be successful after a 1 hour PowerPoint presentation! So what’s a Launch? On the selling side, it’s transferring all the knowledge necessary to prospect, develop, and manage a sales cycle. (Note: complete Program Launches also include knowledge transfer to other functional areas, such as marketing, administration, support, management, etc.).
A complete sales launch has three key components:
i) Training
Ø What the product does, why customers need it, how it’s different, target customer, sales cycle roadmap, competition, pricing, etc.;
ii) Tools
Ø Presentations, case-studies, call scripts, actionable brochures, white-papers, demo’s, proposal templates, etc.;
iii) Programs
Ø Events that prime the pump. Offering spiffs might seem like the best way to get those money-hungry reps pitching your product but showing them how to do it will get you more success.
Since most reps are “just-in-time” learners and only absorb so much information at a time, you can’t provide everything all at once – just enough to give them confidence to engage a customer without fear of failure and initiate a sales cycle.
So what should you be doing now if you want more sales in 2007?
- Revisit your Partner Profile. If you never developed one, put one together. If you have one, dust it off and update it. Once it’s solid, use it to evaluate both existing and future partners. Gaps require mutually agreed action plans to move partners closer to the Profile. Finally, dump the partners that are just too far off and save them and yourself further aggravation.
- Review your Program Launch. Are you really providing sufficient training, tools, and programs to make them successful? Now’s the time to have a closer look and plan your roll-out.
Want to feel better about your channels next year? Now’s the time to make a difference.
Greg Nutter is a Principal with Soloquent Inc. (www.soloquent.com) where he helps technology companies develop go-to-market strategies, programs, and tools that increase indirect and direct selling performance. He has over 20 years experience in sales, sales management, and channel development in the HVTO industry.
Got a comment, got a question, got a problem? Send Greg a note at gnutter@soloquent.com
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