Many Australian SMEs grapple with how to best distribute their products or services – should they focus on selling directly to customers, or build a network of resellers? The answer, almost always, is both. Successfully balancing direct sales with channel sales (selling *through* partners) isn’t about choosing one over the other, it’s about strategically optimising both for maximum reach and revenue. It’s a common challenge, and one we see businesses consistently refine as they grow.

The key is understanding where each approach delivers the most value. Direct sales allow you to control the customer experience, capture full margin, and gather valuable first-party data. Channel sales, however, extend your reach into markets you couldn’t access efficiently on your own, leveraging the existing customer relationships and expertise of your partners. A poorly balanced approach can lead to channel conflict – where your resellers compete with your own sales efforts – or missed opportunities.

Here are a few insights to help you navigate this:

• Segment your customers: Identify customer groups best served by direct interaction (perhaps those needing complex solutions or high-touch service) versus those who prefer the convenience of a reseller.
• Define clear channel roles: Don’t just onboard resellers; give them a specific focus. Perhaps some specialise in certain regions, industries, or product lines. This minimises overlap with your direct sales team.
• Margin and incentive alignment: Ensure reseller margins are attractive enough to motivate them, but don’t erode your own profitability. Consider tiered incentives based on performance.
• Lead distribution strategy: Implement a system for fairly distributing leads between your direct sales team and your channel partners. This could be based on geography, customer size, or product interest.

We often advise clients to start by mapping their entire customer journey. Where do customers currently discover your product? Where do they prefer to buy? This analysis will reveal natural opportunities for both direct and channel sales. Remember, a healthy ecosystem benefits everyone. A strong channel network amplifies your marketing efforts and expands your market presence, ultimately driving overall growth.

The next step is to audit your current sales processes. Identify any areas of conflict or inefficiency, and begin to implement a clear strategy for segmentation, role definition, and lead distribution. A well-defined plan will set you up for sustained success.