Sales Channels: When the direct route is too difficult

If you think about marketing a new software solution or are setting up a new service company, in most cases direct sales will be the favourite in the business plan. In direct sales, you not only retain the full margin of the product, but also complete control over the sales process and direct access to customers. In addition, know-how is built up within the company about how to optimally approach customers and an efficient sales process can look.

However, the costs and long-term dependencies for scalable and well-organized direct sales are considerable. And it can take years to build up domain knowledge, market visibility and functioning market access. It is worth stopping and critically analysing the existing sales structure. Instead of just betting on one horse, you should think in terms of sales channels where direct sales only has to be one of several market accesses. Customer referral from the partner network is equivalent to resale by the partner. Both constructs are welcome in one channel.

System integrators - offer excellent opportunities for product and service companies to be directly involved in projects and new customer situations. Both the partner and the end customer usually want to repeat a good cooperation with successful project completion. Scaling effects arise. Such a relationship scales quickly. If the volume moved is large, it can become a sales quota for the integrator's sales team. Sounds good? It is!

Software product providers - have the potential for service companies to become indispensable for the product partner and their end customers with specific product know-how in a market segment (industry, region). Software product providers often have no or only an underdeveloped professional services team. Regular new projects from a partner without your own acquisition - not bad, right?

OEMs - offer enormous scaling potential for software product providers. Their own product becomes part of a larger, more comprehensive solution. This business model leads to a strong bond between the partners and thus a particularly close and intensive business relationship with a special obligation and a direct sharing of success, but also failure.

Consultants - are also very interesting for software and service providers. Due to their business model, they must remain neutral, but are asked for advice at key moments. They will make recommendations based on proven relationships and offers. It doesn't matter whether it is the Big Four or a single, independent consultant. This channel is too important to ignore. Consultants are expensive, their recommendations have a price tag and therefore weight.

The basis for building up functioning sales via indirect channels is their smart management, especially if you also operate your own direct channel. A well-thought-out partner program with transparent interfaces to direct sales is a good starting point for minimizing channel conflicts. In any case, you should see your partners as customers and treat them with the same quality standards as your own customers. Over time, a good partner often generates x times more sales than the largest direct customers. The constant "pushing" of interested parties in the desired sales direction is becoming less and less important. Instead, you are drawn into interesting projects by your partner network.

But what are the right channels for you? And above all, how do you get there? BizConz will give you the answers.