anyone here make the transition from direct to channel sales? Any tips from successful channel reps on what's made you successful?
MCP
Direct vs channel
6
I worked the channel at a company--you need to put your head between your legs and pray that your channel partners don't run your 747 into the mountains.
Nailed it. Channel sales is hard.
Is it for SaaS or some other industry?
White labeled services, not SaaS. Could be sold either stand alone or as a part of a larger solution.
I have about half direct / half channel sales in my current role.ย
I think the key has been to find the partners that will not waste your time. There are many out there just looking for a quick buck and you need to get people to buy in as a true partner with your solution.ย
Give them all the assets they could possibly need and keep on their ass to make sure they feel supported and bought in to your solution. Make it easy to work with you.ย
Show them how to make money with your product!!! This is key and the main reason they want to work with you. Lol I know this is obvious but I see many times how others forget or even THEY forget.
I think the key has been to find the partners that will not waste your time. There are many out there just looking for a quick buck and you need to get people to buy in as a true partner with your solution.ย
Give them all the assets they could possibly need and keep on their ass to make sure they feel supported and bought in to your solution. Make it easy to work with you.ย
Show them how to make money with your product!!! This is key and the main reason they want to work with you. Lol I know this is obvious but I see many times how others forget or even THEY forget.
Thanks for the insight! Sounds a lot like sales management, which Iโve done most recently. How do you weed out the time wasters early?
Set expectations with your channel partners from the beginning of the relationship (for you and them). The last thing you want is to have to back pedal because they start treating you like a service rep.ย ย
Is there clarity on the role? Or are you going to be on your own?ย A word of caution, I've seen both where it's been easy money, sales just come in from partners and horror stories that introduced depression.ย It depends on what your market is and how much support you're getting from the current company.ย Depressed colleague received very little guidance- sort of a figure it out yourself and he did terribly.ย Eventually came back ot being an IC.
Thanks, I appreciate the insight. Iโm generally self sufficient, but they did say they wonโt make sales plans for me, thatโs on each rep to do (so failures are on reps, but cโmon, youโre still accountable managers), but they will provide feedback on the plans. I donโt see easy money, no existing accounts, all hunting, which bothers me at this point of my career.
By all accounts it would take at least 3 years for โeasyโ money as contracts come up for renewal. One rep said he was $300K sales Y1 ($1.2M quota may have been less then) $800K Y2, $1.2M Y3 and probably $1.5M Y4. At that rate he would have had substantial misses in the first couple of years if quotas were the same and on the plan I was quoted would have made $89K / $120K / $165K / $184K. Not bad numbers, but Iโm used to $120K / $185K / $208K last time I was IC and bases between $140K & $175K with upside as management.
I have some familiarity with the targets having worked for 2 of them for 8 years total. Iโm told by management that there are great accounts that have never been penetrated that just a handful could make the number. Iโm confident in my abilities, just struggling with the idea of 1/2 the base Iโm used to and lower comp overall.
Hybrid... direct/channels sales.ย Direct sales are easier to manage deals since I don't have to factor in outside parties.ย However, channel sales have brought me bigger/complex opportunities.ย My challenge with the channel is communication and buy-in.ย Communicating effectively why it benefits "them" to work with you and training them on what you need to work strategically.ย I've had the CTJ talk with a couple of my channel partners on what I need in order for this relationship to work.
10 comments