For Australian businesses considering reseller or channel partnerships, a key decision revolves around exclusivity. Should you build a network of partners who *only* sell your products (exclusive), or open it up to anyone who wants to join (non-exclusive)? There’s no single right answer; the best approach depends heavily on your growth ambitions and market position.
We often see businesses default to non-exclusivity, thinking ‘more partners equals more sales’. While this can deliver initial volume, it rarely builds the deep engagement needed for sustained growth. Here’s what we’ve observed works best for Australian SMEs:
- Market Maturity: If you’re launching a new product or entering a new market, a non-exclusive approach can rapidly build awareness. However, as your product gains traction, shifting towards exclusivity with high-performing partners is crucial.
- Partner Commitment: Exclusive partners are far more likely to invest in dedicated sales and marketing resources for your products. They’re incentivised to become true advocates, driving deeper market penetration than a reseller simply adding your offering to a crowded portfolio.
- Control & Brand Experience: Non-exclusive networks can dilute your brand message and customer experience. Maintaining consistency across the sales process becomes significantly harder when partners aren’t fully invested in your success.
- Margin Management: Exclusive agreements allow for more strategic margin discussions. You can reward commitment with better profitability, fostering a stronger, more collaborative relationship. This is particularly important as competitive pressures increase.
Consider the long-term. While an exclusive network might appear smaller initially, the increased partner focus and dedicated effort typically translate to higher average deal sizes and stronger customer relationships. We’re seeing this play out consistently with our clients. A well-managed exclusive network, supported by robust partner enablement programs, will outperform a sprawling, unengaged non-exclusive one.
To determine the best path for your business, we recommend a thorough channel assessment. This involves analysing your current market position, growth objectives, and the level of support you can provide to partners. Understanding these factors will allow you to build a reseller network that delivers genuine return on investment and sustainable growth.
