Even though there are many ways to build revenue, most people follow the same strategies that were employed by their parents and grandparents. And, on one level, this makes perfect sense. If it ain’t broke, don’t fix it. Successful strategies should always be duplicated.
However, even though this is certainly a truism of business, every now and then a diversification of your strategies is worth serious consideration. This is the case when it comes to channel partner sales strategies. We’re going to look at what channel partnership means in the sales spectrum and how it can benefit your business.
What Is a Channel Partner Sales Strategy?
Developing a channel sales partnership involves using a third party to sell your product or service. You produce the product or perform the service, but when it comes to selling it, you hand the baton to someone else.
Using the classic lemonade stand model, you could hire your friend down the block who is super popular in school, and all she would do is sell your lemonade. You spend an hour or so making the lemonade Saturday morning, and you give it to her to either hustle throughout the neighborhood or set up a stand to sell it. Your job is then limited to lemonade production, not selling your sweet, tangy product.
How Channel Partnerships Create New Revenue Streams
Your revenue stream—even if it’s strong—is not as diverse as it could be with a channel partnership. To illustrate, let’s say you have a relatively steady stream of sales, and you manage them yourself. Your revenue is coming primarily from the Northeast United States and is powered by women aged 35 to 54. Your business is rolling along, and you’re seeing some growth.
But what if you could access the same demographic in another part of the country? Or how about England? France? Zambia? Australia? If you wanted to make money in those markets, would you know how? Likely, you wouldn’t. However, a channel partnership with a company that focuses on one or more of those markets opens them up for you. All you have to do is find the right one.
Running a Successful Channel Sales Program
A channel sales program is only as good as its plan. There is an unlimited variety of channel sales strategies. One of the biggest factors is determining what level of partnership you would like to foster. Do you want to produce the product and give over selling to your partner like the lemonade example? Or do you want your partner to have more input into both the operations of the business and the nature of the product itself?
This is an important decision. One example of how to do this is through an “enhanced” channel partnership. Here, the partner provides input to help improve the base product. Is this something you’re looking for? Perhaps a slightly different structure of the partnership would be more your speed. Once you decide, you can start putting a plan into action.
If you carefully outline what you need and remain focused on true win-win scenarios, you will be well on your way to increasing your revenue through the use of a channel partnership.