Why Partner?- Cost Transfer and Opportunity Capture

Critical sales and operational roles should be performed by vendors if they cannot be transferred economically.

• Technical skills• Product completion• Customer access• Geographic coverage• Industry recognition• Distribution

VENDOR

Channel

Coverage Costs

Lead Creation Costs

Opportunity

Management Costs

Sales Process Costs

Integration Costs

Solution Build Costs

Operational Costs

Support Costs

CUSTOMERCUSTOMER

SUPPLIERSUPPLIER

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© Channel Enablers

International 1

Benefits of an Effective Channel

Increased Revenues

Better MarginsShorter Time to Market

Increased

Market

Value

Some things we want to go up

Some things we want to go

down

Why Don’t Partners Sell?

Portfolio mentality• A lot of “nice to haves”

You are a disruption

Define the Business Opportunity

How will the partner make

money?

What do we want sold?

To what market?

Market size?

What do you want them to do?

Services associated with the product:• Implementation?• Customization?• Training?• Additional seats? Other products

• Drag through• Third-party

software?• Hardware?

Internal Preparation

Internal Preparation Objectives &

Strategic Policy

Decisions

Whole Product and

Internal Support

Technical Issues

Legal Documents

Partner Support

Programs

Recruitment

Managing a Partner

Managing a Partner

Marketing with

your Partners

Avoiding Channel Conflict

Programs &

Incentives

Effective Communi-

cations

Tiered Partner

Programs

Reviewing & Firing Partners

Corporate Marketing

Product Marketing Lead Generation Marketing to the

Partner

Managing a Partner

Managing a Partner

Marketing with your Partners

Avoiding Channel Conflict

Programs &

Incentives

Effective Communi-

cations

Tiered Partner

Programs

Reviewing & Firing Partners

Lead Registration

Market Segmentation

Compensation

NeutralityCross-Border Sales

Internal Preparation

Managing a Partner

Marketing with your Partners

Avoiding Channel Conflict

Programs &

Incentives

Effective Communi-

cations

Tiered Partner

Programs

Reviewing & Firing Partners

Market Development Funds

Sales Contests Quota Clubs Spiffs

Managing a Partner

Managing a Partner

Marketing with your Partners

Avoiding Channel Conflict

Programs &

Incentives

Effective Communi-

cations

Tiered Partner

Programs

Reviewing & Firing Partners

Partner Portal Site Visits Newsletters Partner Conferences

Reporting

Managing a Partner

Managing a Partner

Marketing with your Partners

Avoiding Channel Conflict

Programs &

Incentives

Effective Communi-

cations

Tiered Partner

Programs

Reviewing & Firing Partners

When to Use Them

Typical Program Elements

Discounts Best Practices

Managing a Partner

Managing a PartnerMarketing with your Partners

Avoiding Channel Conflict

Programs &

Incentives

Effective Communi-

cations

Tiered Partner

Programs

Reviewing & Firing Partners

Annual Reviews Terminating a Partner