You’ve got a great product. Your marketing materials are in good shape. You’ve built a profile of your best prospects and even have a sales process that’s worked in the field–a couple of times. Many VP’s of Sales at emerging growth companies are in exactly this predicament. Numbers to make with everything lined up except the prospects.  Geoffrey Moore, author of the best-selling business handbook Crossing The Chasm, used the image of a perilous divide to refer to this phase of company growth. Many businesses fail to make the transition from startup to high-performing household name and one of the reasons is failure to create a scalable, dependable sales channel.  What are your options for building a sales channel that will propel your company to greatness?

  • Hire direct sales people, train and manage them, with the hope that some turn into eagles
  • Look for other companies with complementary offerings who already have an established channel and can sell your product as a channel partner

 Turbocharge Your Sales Channel-The Chasm

Building a direct sales channel takes time, lots of money and there’s a real risk you’ll have to try a lot of sales talent before you find people who produce for you. Recruiters tell us that it takes 2 months on average to hire a sales rep and 6-10 months before the rep is fully productive.  In other words, it can take nearly a whole year before you know you have a non-performer.  If you’re burning your financing dollars while building your channel, there’s a real risk you may run out of cash before your channel produces enough revenue to sustain the business. Developing a channel partner can be a faster path to revenue growth but there are a number of unknowns:

  • Collaboration
  • Marketing and communication
  • Education and training
  • Performance management

One increasingly attractive option for mezzanine-level growth businesses is using a 3rd party software to provide the framework for recruiting, developing and managing channel partnership relationships.

In order to ramp your channel revenue quickly, channel partners must be educated on your product and trained to present your value proposition consistently to prospects. In the past this was challenging because sales partners created their own go-to-market strategies and marketing materials, which either were ineffective or bore little resemblance to the hiring company’s materials. However, today, Software-as-a-Service providers are offering channel management systems, also referred to as Partner Relationship Management (PRM) software, which provide channel partners easy access to marketing materials.  These systems allow you to maintain brand integrity and consistency across your channel partners via an easy to set up, inexpensive and highly effective platform.  Your company can store its menu of marketing assets in one central location, where partners can access them, educate themselves and present them to their prospects. This ensures a more consistent experience from one sales partner to another.

About LogicBay
LogicBay’s Partner Relationship Management (PRM) Technology is rich with best practice workflows making it easier for organizations to do business with channel partner re-sellers. The result: More engagement and Mindshare. Greater Efficiency and Cost Savings. Alignment with Channel Partners. And, Performance Improvement for the Entire Sales Enterprise.
Premium White Paper Download this premium white paper to learn Channel Management Best Practices – Make it easy for dealers to do business with you, Heighten dealer engagement, Gain mindshare and maximize financial returns. Learn about LogicBay’s 4Core Best Practice Framework including methods for more effectively training and monitoring dealer employee certifications.
Premium White Paper Link to LogicBay’s Library of Partner Relationship Management White Papers. These white papers provide best practice ideas on a Channel Readiness and Performance Improvement strategies. Topics include subjects such as: Effectively launching a LMS for the ChannelApplying Lean Principles to Channel ManagementChannel Life-cycle ManagementPartner Portal Technology Unification, and much more.
Premium White Paper Link to LogicBay’s Library of Client Case Studies. Learn how LogicBay’s PRM Solutions and Technology have created significant performance gains for clients such as Caterpillar, HP, Daimler Trucks and Outdoor Living Brands.