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Channel Matters Blog > December 2014 > Best Bet: Achieving Channel Revenue Targets

Best Bet: Achieving Channel Revenue Targets

by Rich Blakeman
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It takes money to make money. While there are stories of entrepreneurs who started with nothing, more often than not, business owners need to invest before they start seeing returns. Channel managers who want to achieve their own revenue targets need to convince their channel partners to make the investments that benefit both the partner and the channel organization. Many financially minded channel partner executives need to see a solid business case before they'll act.
When channel managers build and present a business case for partner investment, financial target attainment was 45 percent higher.
The 2014 Channel Enablers Channel Competency Study
While marketing and sales enablement may try to help channel managers by creating a business case that can be used in the field, there's more to it than that. "Convincing channel partners to make the right investments isn't about presenting a generic business case. It’s about understanding how channel partners make money and how they evaluate alternate investments," says Rich Blakeman, Managing Director for Channel Enablers.
Channel partner business models vary. Some partners make money solely from reselling products and services offered by the vendor. Others make money from the support and consulting tied to those products. Some, especially those who have been in business for awhile, are focused on selling to existing customers while others need to focus on adding new customers. Factor in all the nuances in the ways channel partners make money, and no two business models are alike.
As Jan de Leon, Director of Channel Sales for Channel Enablers' Asia-Pacific Region, explains, "Channel managers don't get very far when they try to present a business case for making money on selling services to existing customers when the partner's business model is focused on selling products to new customers. There has to be a match between the business case and the partner's business model."
"The channel manager also needs to understand the objectives of each specific channel partner so they understand how the partner evaluates alternative investments," adds Blakeman. "One partner may be looking at exit strategies for their business. Another may be seeking outside equity capital. Another may be in fast growth mode. The business case must be tailored to each partner's individual objectives."
Channel Enablers executives are quick to point out that many channel managers need coaching when it comes to building and presenting a business case. "Channel managers are often hired for their relationship building skills," says de Leon. "While marketing may be able to help with business case templates, learning to build and present a business case tailored to a specific partner takes training and regular coaching from sales leadership."
Last modified on 12/17/2014 12:13:22 PM
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