Many Australian SMEs building a reseller channel wrestle with the right balance between partner sales and direct sales efforts. There’s no single ‘ideal’ ratio, but we can guide you towards finding what works best for your business. It’s a crucial question because getting it wrong can mean leaving money on the table, or worse, cannibalising your own team’s efforts.

The temptation is often to lean heavily on partners, especially when scaling quickly. However, a completely partner-reliant model relinquishes control over customer experience and can limit your ability to gather valuable market intelligence. Conversely, a purely direct sales approach ignores the reach and cost-effectiveness a well-managed channel can provide.

Here are a few insights to consider when determining your optimal ratio:

• Stage of Growth: Start-ups and rapidly growing businesses often benefit from a higher partner ratio (perhaps 70/30 partner to direct) to accelerate market penetration. As you mature, shifting towards a more balanced approach (50/50 or even 60/40 direct) allows for greater control and margin capture.
• Product Complexity: Highly technical or customised products generally require more direct sales involvement. Partners may struggle to effectively position and support these offerings. Simpler, more standardised products are well-suited to a partner-led model.
• Target Market: If you’re targeting a broad, geographically dispersed market, a strong partner network is essential. For concentrated, niche markets, a direct sales team might be more effective.
• Partner Capability: The quality of your partners matters immensely. Invest in partner enablement and support. High-performing partners justify a larger share of your sales volume.

We often see businesses initially over-estimate the capacity of their partners. A phased approach is best. Start with a conservative partner ratio, closely monitor performance, and adjust accordingly. Regularly analyse sales data – not just revenue, but also customer acquisition cost, lifetime value, and deal size – to understand where each channel is delivering the greatest return. Don’t be afraid to re-allocate resources based on these findings. Looking ahead, maintaining flexibility will be key as market conditions evolve.

Ultimately, the ideal partner-to-direct sales ratio isn’t a fixed number. It’s a dynamic metric that requires ongoing monitoring and optimisation. Your next step should be to map out your current sales distribution, identify areas for improvement, and develop a plan to test different ratios.