Outbound Wiki

Channel and reseller partners

Recruiting and working with resellers, agencies and consultancies that sell or recommend you.

Recruiting a reseller partner starts with the business model. Decide what the partner will sell, how it fits the partner's existing motion, and how the economics work before asking for a meeting. Programs that fit a partner's sales motion, customer relationships, and economics are built as a business model for that partner.1 A signed agreement can still leave you with no working channel: most partner programmes produce a burst of signed agreements and then go quiet within 18 months.2 Recruit for a workable business model, then test whether the partner can run it.

Run the sequence

Keep the work in order so a good conversation does not outrun the commercial terms. The recruitment process has six stages: establish the business case, evaluate existing partners, build ideal partner profiles, focus on attraction, conduct discovery, then onboard and enable.3

Establish the business case

Start by deciding why this partner belongs in the portfolio. Before recruitment starts, align on the type of partner you want and how that partner should contribute to your portfolio and growth plans.4

Write the brief around the gap you need filled, the customer group the partner can reach, and the work you expect the partner to do. Use commercial language so a prospective partner can see where the opportunity fits its existing business. Once you can explain why this partner type belongs in the program without relying on product enthusiasm, the brief is ready.

Review existing coverage

Review current coverage before adding another name to the channel. Set boundaries around customer segments, routes to market, and rights.

For enterprise customers, a vendor may need to sell through distributors that support required channels while maintaining separate channels for other segments.5 A channel agreement can combine a non-exclusive value-added dealer appointment with exclusive referral rights for a defined group.6 The same agreement can reserve the right to authorize other partners and sell direct outside the stated exception.7

Map where direct sales, reseller sales, referrals, and delivery overlap. Decide which gaps justify recruitment and which need clearer ownership. Recruit only when you can explain how a new partner will add coverage without creating an unspoken promise of exclusivity.

Build the ideal partner profile

Define fit by the partner's customer access, internal coordination, and commercial habits, and by whether it can carry the motion.

Check whether the target partner organization has aligned sales, marketing, provisioning, and support. Those functions can then act as a natural extension of one another.8 Recruit partners who are confident in the profile of their own customers.9

For tier-one accounts, work with your channel manager to identify the relevant partner.10 Master agents and other distributors can provide access to top-performing sales partners.11 They can also manage commissions, partner service inquiries, and training on your solutions.12 They may act as gatekeepers, giving their best sales agents access to vendors with strong channel agreements, service performance, and customer experience.13

Use those routes when they improve access or reduce operating work. Continue once the profile tells you which partner to recruit, why it fits, and who can open the door.

Attract the right partner

Write the recruitment message for the partner's business. Explain the product, then show how the relationship affects the partner's work and revenue.

Most channel partner pitches focus on product functionality and the benefits for the agency's clients.14 Few address the partner's reasons for joining, such as adding value to client relationships, expanding the service portfolio, and driving revenue.15 A prospective partner's priority is its own business.16

An agency owner can want clients to succeed and achieve better marketing results.17 The agency's success depends on client success.18 Use that connection to explain the partner's commercial role, the customer outcome it can support, and the work it will need to do. Listen for questions about margin, delivery, ownership, and support. The conversation is working when the partner is discussing how the program fits its business and whether the product sounds useful.

Run discovery

Discovery tests whether the proposed model works with ordering, payment, margin, and delivery. Ask for specifics early so enthusiasm does not hide a weak commercial fit.

Ask: "Who pays who? Do I place the order and pay you, or do you collect and pay me? What margins do you pay for each of the levels? What are the qualifications per level? How long do you pay? How soon do you pay?"19 Also ask: "Do you have a partner program page that explains this or a document you can send?"

Set margins for each route you support, including affiliates, resellers, and white-label partners.20 If implementation is part of the sale, agree how you identify the Implementation Partner, since that role may change during the lifecycle of the sale.21

Both sides should be able to describe who creates the opportunity, who places the order, who gets paid, who delivers, and who owns the customer relationship.

Define the motion and onboard

Turn the commercial agreement into a working handoff. The partner should know what it is authorized to do, what support it receives, and what the customer experiences after the sale.

A channel partner program lets other companies sell, deliver, or refer your product.22 State the authorized work clearly. Channel Partners can be business entities authorized to market, sell, and sublicense the product and associated services.23

In a reselling motion, the partner closes, the vendor delivers, the partner buys at a discount, resells at a margin, and owns the end-customer relationship.24 Put these responsibilities into onboarding materials and deal rules. The channel team should combine sales, strategic, and operational expertise to recruit, onboard, and support partners.25

The partner is ready when it can explain the motion in its own words and knows where to take a deal, a service question, and a customer issue.

What not to do

These mistakes create activity without a working channel:

  • Treat a partner program as a distribution deal and leave the partner's business model undefined.26
  • Market the solution while leaving the partner program unexplained.27
  • Assume that a benefit to the end client automatically gives the partner a reason to join.28
  • Leave the program informal and invite one-off agreements that secure exclusive advantages.29
  • Keep inactive partners in the long-tail after they stop contributing to channel objectives.30

Sources

  1. 1
    “They are built as a business model for the partner, one that fits their sales motion, their customer relationships, their economics.”
  2. 2
    “The difference between those two approaches is why most partner programmes produce a flurry of signed agreements and then go quiet within 18 months.”
  3. 3
    “Establish the business case Evaluate existing Partners Build ideal Partner profiles Partner attraction focus Discovery phase Onboard and enable”
  4. 4
    “The channel Partner recruitment process should be focused on alignment – so before you get started, you need to know exactly what kind of Partner you want and how you want them to contribute to your portfolio and growth plans, to establish the business case.”
  5. 5
    “To reach them, a vendor may need to sell through distributors that support those channels, while maintaining separate channels for other customer segments.”
  6. 6
    “Standard desires to be appointed by ExpeData as (a) a non-exclusive, value-added dealer to promote and market the ExpeData Digital Pen and Paper System and associated Online Services, and (b) the exclusive referral partner to promote and market the ExpeData Digital Pen and Paper System and associated Online Services to the International Associates.”
  7. 7
    “Except as provided in Section 4(b), ExpeData may (i) authorize other Channel Partners doing business within or outside the Authorized Territory to promote and market the Digital Pen and Paper System and associated Online Services, and (ii) directly market the Digital Pen and Paper System and associated Online Services to Business Entities within or outside the Authorized Territory.”
  8. 8
    “Alignment is a “biggie”: If the target partner organization has aligned sales, marketing, provisioning and support, then they can act as a natural extension to one another.”
  9. 9
    “And it’s important to recruit partners who are confident in the profile of their own customers.”
  10. 10
    “You've got your partners, where you are working with your channel manager to try to identify”
  11. 11
    “Master agents and other distributors can bring a lot of value to the table, including access to top- performing sales partners.”
  12. 12
    “(Plus, they help to manage commissions, partner service inquiries and training on your company’s solutions.)”
  13. 13
    “Yet they also can be gatekeepers, ensuring that only vendors offering the best channel agreements, service performance and customer experience get access to their best sales agents.”
  14. 14
    “Most of these pitches inevitably revolve around the functionality of the product or solution in question and the benefits to be gained by our clients.”
  15. 15
    “Precious few speak to our own, selfish motivations: adding value to the agency-client relationship, expanding our service portfolio, and yes, driving revenue for the agency.”
  16. 16
    “But as a prospective partner, my priority is our business.”
  17. 17
    “As an agency owner, I want our clients to be successful and drive better marketing results.”
  18. 18
    “If our clients succeed, we succeed.”
  19. 19
    “Who pays who? Do I place the order and pay you, or do you collect and pay me?Do you have levels?Where do you start? The lowest, or can we come in higher?What margins do you pay for each of the levels?What are the qualifications per level?How long do you pay?How soon do you pay?Do you have a partner program page that explains this or a document you can send?”
  20. 20
    “When creating a reseller program, you always have to determine the margins for your affiliates (link referrals and referral forms), resellers (retail through VARs) and even white-label partners.”
  21. 21
    “Implementation Partner Identified as the system integrator for the opportunity. This may change during the lifecycle of the sale”
  22. 22
    “A channel partner program is the operating system that lets other companies sell, deliver, or refer your product.”
  23. 23
    ““Channel Partners” shall mean, collectively, all Business Entities which have been authorized by ExpeData to market, sell and sublicense the Digital Pen & Paper System and associated Online Services.”
  24. 24
    “Reselling Partner closes; vendor delivers Partner buys at discount, resells at margin Owns end-customer relationship”
  25. 25
    “This team should have a mix of sales, strategic, and operational expertise to effectively recruit, onboard, and support partners throughout the program.”
  26. 26
    “Most companies treat a partner programme as a distribution deal.”
  27. 27
    “This experience underlines one of the common failings of partner recruitment campaigns: they market the solution and not the partner program.”
  28. 28
    “They extoll the potential benefits to the end client on the assumption that what’s good for the end user is good for the partner.”
  29. 29
    “Many resellers will try to negotiate these when a vendor doesn’t have a formal program to lock up exclusive advantages.”
  30. 30
    “Namely, those Partners who are no longer (or perhaps never were) proactive or positively impacting channel objectives.”