Many Australian small and medium enterprises see channel partnerships – working with resellers, distributors, or other businesses to sell their products or services – as a ‘nice to have’. However, when structured correctly, they’re a powerful engine for revenue growth. We consistently see businesses significantly increase their reach and sales volume through effective channel programs. But what truly makes these partnerships deliver?
It’s not simply about signing agreements. It’s about building mutually beneficial relationships that actively drive sales. Here are some key elements we focus on with our clients:
- Lead Distribution & Management: A clear system for sharing qualified leads is critical. Partners need consistent access to potential customers, and you need visibility into how those leads are being followed up on. Invest in a simple CRM integration or shared spreadsheet to track progress.
- Partner Enablement – Beyond Training: Training is important, but enablement goes further. This includes providing partners with sales collateral tailored to *their* customers, co-marketing funds, and dedicated support. Think about what your partners need to confidently position your offering.
- Margin & Incentive Structures: Competitive margins are essential, but consider tiered incentives based on performance. Rewarding partners who consistently exceed targets encourages greater investment in your products. We often recommend performance-based rebates.
- Joint Business Planning: Don’t treat partners as simply another sales channel. Work *with* them to develop a joint business plan outlining shared goals, target markets, and marketing activities. This fosters a sense of ownership and commitment.
A common mistake is treating all partners the same. Segmenting your channel based on their capabilities and target markets allows you to tailor your support and incentives for maximum impact. For example, a specialist IT reseller will require different support than a general business solutions provider.
Looking ahead, the businesses that will thrive are those who view channel partnerships as strategic alliances, not just transactional relationships. By investing in partner success, you’re investing in your own revenue growth. If you’re serious about expanding your reach and accelerating sales, a well-defined and actively managed channel program is a must. The next step is to analyse your current partner landscape (or potential partner profiles) and identify opportunities for improvement.
