1) There are many routes to market for vendors including distributors, system integrators, resellers, retail chains, and direct sales. Measuring "sales out" to end customers is important for understanding true customer demand. 2) Most channel programs sort partners into tiers based on factors like sales volume, but this can neglect the needs of smaller partners. The optimal mix of partners balances revenue contribution across partner sizes. 3) An effective partner program balances measurable requirements from partners with measurable benefits and rewards to find a return on investment for both partners and vendors. It involves analyzing, targeting, managing, measuring, and engaging partners to create awareness and leads.

1. bChannels
Structures of Channels
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2. The Market Triangle –
few big companies + lots of little companies
Optimum IT
Corporate
Resellers
business split*
Corporate, 20%
Pull
Corporate
500 employees
Vendor
Large Large, 20% SME, 60%
Business
Resellers &
100 employees
Retail
Push * Source Gartner/IDC
Small/Medium (SME)
1 employee
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3. Many Routes to Market
Different end-customers buy in different ways
Vendor
Sales In
Distributors
Sales Out Sales Out
System’s
Integrators
Catalog/
Corporate Local Resellers Retail
Mail Order
Resellers (2-Tier) Chains
& eTail
Corporate SME SOHO Consumer
500+ 10-500 1-9 1
End users by size of company (number of employees)
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4. Measuring Sales
Why ‘Sales Out’ is so important
Sales “in” Sales “out” “True” sales
Distributor End
Vendor Distributor Reseller
Distributor [No Stock] Customer
Stock
Measuring
sales to Measuring
distributors ‘sales out’ is a
just measures very good
how much indication of
you are filling real customer
their purchases
warehouse
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5. Program Tiers
What’s the best mix of partners?
20% Partners
80% Revenue
5% Partners
50% Revenue
45% Partners
45% Revenue 15% Partners
30% Revenue
80% Partners
20% Revenue 30% Partners
15% Revenue
50% Partners
5% Revenue
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6. The Terrible Tiers
or how many vendors think about their channel
You buy a lot.
So you must be pushing our products.
We’re not clear about that.
We’ll spend a lot of time with you anyway.
Sorry, no humans available.
Managed
You must interact with us through our
”
website.
Remote Touch
We have no idea who you are.
You must not be important.
Unmanaged
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7. The ‘sweet spot’
Which bChannels can find and help you exploit
Value ($/€/£)
Difficult to
significantly grow
existing managed
accounts
Biggest Growth
opportunity
Growing low-
value accounts
yields low
revenues
Top Top
Reseller Size
Biggest 100 500 Smallest
Managed High value Low value
Accounts unmanaged Accounts
Accounts
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8. Partner programs have to be balanced
It’s not all about what the vendor wants
The partner program must balance measurable requirements
with measurable benefits.
Invest Reward
Sales Financial
Skills Access
Service Recognition
The Partner Program must provide a return on investment for
both the partner and the vendor.
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9. Core Partner Program Methodology
Analyse, Identify
classify + Build
effective
and target
partners Manage partner value
propositions
Measure Communicate
+ +
Reward Engage Create
awareness
Deliver Deliver and leads
!
program communication
benefits to the channel
Establish
program
requirements
Channel Partners
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10. FOCUS. PEOPLE. COMPETENCY