Channel conflict is a common headache for Australian businesses expanding through resellers. It happens when your own direct sales efforts clash with those of your partners, leading to price wars, confused customers, and ultimately, damaged relationships. It’s not about *if* conflict will arise, but *how* you’ll manage it. A proactive, fair approach is essential for sustained growth.
The key is recognising that resellers are an extension of your sales team, not competitors. Treating them as such is the foundation of a healthy channel. Here’s how we help our clients navigate these tricky situations:
- Clearly Defined Territories & Customer Segmentation: This is the most effective preventative measure. Before onboarding resellers, map out geographical areas or specific customer types each partner will focus on. Avoid overlap wherever possible. For example, one reseller might specialise in servicing the education sector, while another focuses on small businesses.
- Tiered Reseller Programs with Differentiated Pricing: Not all resellers are equal. Reward performance and commitment with tiered programs offering varying levels of margin and support. This incentivises partners to invest in your products and discourages undercutting. A higher tier might receive exclusive access to leads or marketing funds.
- Lead Registration & Distribution Rules: Implement a system where resellers can register leads they’re actively pursuing. This prevents multiple partners chasing the same opportunity and ensures fair allocation. A clear, transparent process is vital – no ‘first in, best dressed’ scenarios.
- Protect Direct Sales with Strategic Focus: Your direct sales team shouldn’t compete with resellers for everyday business. Focus direct efforts on larger, more complex deals, or target market segments resellers aren’t equipped to handle. This demonstrates respect for your partners’ efforts and avoids unnecessary friction.
Regular communication is also crucial. Quarterly business reviews with resellers allow you to address concerns, share market insights, and reinforce the value of the partnership. Don’t wait for conflict to erupt – proactively seek feedback and adjust your strategy as needed. Looking ahead, as customer expectations continue to evolve, a flexible channel strategy will be even more important in 2026 and beyond.
Ultimately, resolving channel conflict fairly isn’t about picking sides. It’s about creating a win-win ecosystem where both your business and your resellers can thrive. If you’re experiencing ongoing channel conflict, the next step is a comprehensive channel audit to identify the root causes and develop a tailored resolution plan.
