One of the most grueling tasks in selling is moving your product through an indirect sales channel. In these situations, you have to sell to other sales people, who then will sell your product to the end consumer. It’s similar to herding cats because you cannot command them as you are not their sales manager. Hence, you can't force them to sell your product, especially when there's easier and more money to be made selling someone’s else product.
The first basic rule of relationship with your channel partners, of course, is that both of you want to make a profit through the sales of your product. It's very important to understand that, your profitability is in direct conflict with the profitability of your channel partners.
You, as the supplier of the product, are looking to cut down your cost of sales by leveraging your channel partner resources. Meanwhile, the channel partner is hoping you to reduce the cost of ramp up and hence reduce their sales cost.
Under these odd circumstances, the only way out is to devise a joint-venture relationship that can formulate a mid-point in each other’s profitability that both companies can bear in order to make a successful relationship. This clearly means that an investment is needed from your side in resources for marketing, training and sales support. Likewise, your channel partner must invest his resources to training and active promotion of the solution.
Each channel relationship is a strategic investment. You don’t need to invest in too many channel partners, but in the ones, you do should be as effective as possible.
As a matter of fact, over-recruiting of channel partners is one of the main reasons that indirect sales efforts of many companies fail. With too many partners, you lay your resources thin and hence making your partners starve with proper support which could have otherwise sold more of your product.
Instead of spending on advertising, you need to direct your funds towards training a relatively smaller number of channel partners. The ability to build a productive channel is in direct relation with the amount of effort and money that you invest into quality channel training. Here's a five step program:
- STEP 1: CREATE PRACTICAL SALES TOOLS: To build a highly efficient channel the training regimen must go beyond the usual training that you would normally provide to a direct sales team.Your channel partners' sales representatives will need competitive data sheets, selling videos, sales scripts, testimonials along with usual specification brochures.
- STEP 2: PROVIDE AMPLE TECHNICAL SUPPORT: Channel partners always need a lot of good technical support, which is your job to provide. Because the channel partners usually stretch the products to do some new things, they're more likely to encounter problems, hence creating a requirement for additional support. The chances, here again, are that you might lay yourself thin. Therefore, you need to count your partners to a number that you can provide a good support.
- STEP 3: CREATE WAYS TO COMMUNICATE MORE FREQUENTLY: Frequent communication is very important for a healthy channel relationship with your partner. With the pace with which every business moves nowadays, it is very important for you to provide news feed on daily or at least weekly basis about the major happenings in your company, your installed base, the target market etc.
- STEP 4: BUILD A SALES INCENTIVE PROGRAM: Even though the sales staff might already be getting compensations, they will be less likely to sell your product. You need show that there is “something in it for them. You should set up a system where sales reps of your channel earn proportional points when they sell your product. These points can be redeemed into a gift.
- STEP 5: MEASURE THE RELATIONSHIPS: There are two primary reasons to measure the relationships. Firstly, the key to a healthy channel relationship is trust, which also means that you need to be flexible in making adjustments that will improve performance. That's only possible if you know what's happening around. Secondly, when one of your channel partners isn't performing, you need to know that quick enough to either fix the problem or remove that partner from your programs.
The whole point of this article is that increasing sales by nurturing indirect sales is not something that can be done easily. It also does not mean that you require massive amounts of cash. If you follow these undoubted step to promote your sales, you will succeed more often than not.