Many Australian SMEs expanding their reach face a common challenge: how to sell directly to customers *and* through reseller partners without creating conflict. It’s a delicate balance, but getting it right is crucial for maximising revenue and building a sustainable growth model. Channel conflict happens when your direct sales efforts unintentionally compete with, or even undermine, your partners. This can lead to frustrated partners, reduced sales overall, and damage to your brand reputation.
We’ve seen businesses successfully navigate this by focusing on clear differentiation. The key isn’t to eliminate overlap entirely – that’s often impossible – but to manage it strategically. Here are a few insights to consider.
- Segment your customers: Don’t sell the same packages to the same types of buyers through both channels. Partners often excel at serving specific niches or geographic areas. Focus your direct sales team on larger enterprise clients, or customers requiring highly customised solutions.
- Price strategically: Avoid undercutting your partners with aggressive direct pricing. This immediately devalues their offering. Consider offering different product bundles or service levels through each channel to justify price variations. Think about margin protection for partners – they need to be profitable to stay engaged.
- Lead distribution is vital: Implement a clear process for handling inbound leads. If a lead comes in that’s a good fit for a partner, immediately qualify it and pass it on. A well-defined lead sharing agreement prevents both teams from chasing the same opportunity.
- Partner enablement is paramount: Invest in your partners’ success. Provide them with the sales tools, training, and marketing support they need to effectively sell your products. A strong, capable partner network reduces the need for direct sales intervention.
Beyond these points, regular communication is essential. Hold quarterly business reviews with key partners to discuss performance, identify areas for improvement, and address any concerns. Transparency builds trust and fosters a collaborative relationship. As we look towards 2026 and beyond, businesses that prioritise partner success will be best positioned to capitalise on market opportunities.
Ultimately, preventing channel conflict isn’t about choosing between direct and partner sales; it’s about orchestrating them effectively. Start by mapping out your current customer segments and sales processes. Then, develop a clear channel strategy that defines roles, responsibilities, and incentives for both your internal team and your partners. A well-defined strategy will ensure both channels contribute to your overall growth objectives.
