‣Do you need Channel ?

‣When and Which Channel to Engage

‣What must you do to have an effective channel

‣Channel reality

‣Creating a perfect world

Does Channel Fit Into Your Plan

I 2 IPO

Meeting Sales Productivity Objectives

Compelling Product and TAM

Sales Team Sales Enablement

Demand Generation CHANNEL

Meeting Sales Productivity Objectives

Compelling Product and TAM

Sales Team Sales Enablement

Demand Generation

CHANNEL IS THE MULTIPLIER

Do You need the Channel?

‣To Scale an Enterprise BtoB the answer is

– Leverage & Reach

– Sustained Momentum

– Contracts & Receivables

YES!

‣ You cannot get started without a Direct/High Touch Sales effort– The channel will not get interested until they see

initial success and customer interest in the market• Product success and marketing will be essential – If you don’t matter,

they don’t care

‣ You don’t need to have a formalized channel program initially– Make sure the margins and incentives are

sufficient to catch their attention

‣ Identifying the right channel partners– If they do not carry a competitors product – they

are NOT likely your channel

When and which Channel to Engage

‣ VARs/VADs– One Tier is the way to start – They

can directly engage your product and service with the end customer

‣ Distribution– When you see scale and volume on

the horizon

‣ Service Provider and Integrators– SaaS and Cloud Services may find

this channel effective

‣ Direct Channels – (eg.CDW)– Volume and scale products and

services to the Mid - Market

When do you Engage with Various Channel Options?

What must you do to have an effective channel

‣Understand When and Why they Care– Your product or service needs to fit cleanly

within their portfolio• Compliment/Overlap/Replace current products• Fit a strategic direction or Niche• Business model aligns with their current business model• Sales organization compensation model is consistent with

your business

– The business economics must be apparent – if not compelling

– Training – If training is not a priority to you make it one• The channel will not deliver the value you expect them to

unless you train them – and certify them

9

Channel Reality

‣The Channel will not come to you unless you have something they want or need

‣The Channel will not initiate deals and bring you leads until you bring them deals – AND make them lose a few deals

‣The Channel will provide the ultimate leverage and increase sales productivity beyond a Direct selling model

‣The more Channel partners, and the more diverse the channels, the better – Channel conflict is inevitable – It is OK

In a Perfect World

‣ A Compelling Product – with differentiation

‣ A Competitive Advantage against other vendors and competing partners

‣ A Channel Program that enables Partner success – and achieve strong margins

‣ Market Momentum

‣ Strong drag-along services

‣ You build momentum,

and you will be in control !