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 Exclusive Benefits: Not all resellers are created equal. Implement a tiered system – Silver, Gold, Platinum – based on performance. Higher tiers receive preferential pricing, marketing support, and access to exclusive leads. This incentivises growth and rewards loyalty, reducing the temptation to undercut pricing.
- Deal Registration & Protection: Implement a system where resellers can register potential deals. This gives them priority and protects their investment in pursuing that opportunity. It’s a clear signal that you value their effort and won’t step on their toes.
- Transparent Communication & Joint Marketing: Regularly communicate your sales strategy and any planned direct sales activities to your reseller network. Better still, collaborate on joint marketing campaigns. Co-branded materials and shared events demonstrate partnership and build trust.
Ignoring channel conflict is a false economy. It erodes reseller confidence, stifles growth, and can lead to partners abandoning your brand. A well-managed channel, where resellers feel valued and supported, will deliver significantly higher returns than a fragmented, competitive one.
The next step is to audit your current reseller agreements and sales processes. Identify potential areas of overlap or ambiguity. A simple channel health check can reveal vulnerabilities before they escalate into major issues. We can help you design and implement a channel strategy that fosters collaboration and drives sustainable growth into 2026 and beyond.
