In 2018, a number of industry thought leaders used DevPro Journal software developer magazine articles as a platform to share their tips with you on how to successfully build a reseller channel. The attention to this topic is not surprising: selling through a channel can be a great advantage for an ISV, but poor channel management, on the other hand, can create problems that can hinder growth and Success.
Here’s a recap of some of the sage advice from this year’s DevPro Journal magazine articles focused on reseller channels.
Don’t sign partners without a plan
Linda Sudderth, North American Sales Manager of OEM, VAR and ISV Channel Partnerships for Epson, explains that the first step to creating a reseller channel is knowing your software, knowing the reseller model that fits the your solution, and then finding reseller partners that fit well with your business model. Taking your time and methodically growing your channel with the right partners is the best approach, rather than trying to attract a large number of resellers at once.
Your responsibilities don’t end with the partnership agreement
Sterling Payment Technologies contributed to a Software Developers Magazine article, “Successful ISV-Reseller Partnerships Start with the Right Match”, which highlights that once you’ve signed up a new channel partner, your job is only begin. You must provide resources and support, including training and marketing and sales support. You should also train internal resources to provide any support your channel partners may need.
Avoid channel conflicts
Brenda McCurry, vice president of merchandising for ScanSource POS, says the key to a successful reseller channel is not selling to end users when you have channel reseller partners selling to the same market. “Not only would this strain business relationships with reseller partners, it would also confuse customers and dilute the overall business footprint,” McCurry said.
Don’t partner on recurring revenue alone
In our article based on an interview with doForms CEO John Darienzo, you’ll find some tips for creating a sustainable channel, including partnering with resellers who aren’t just trying to simply sell your software as their sole source of revenue. Darienzo says he is looking for partners who can offer a total solution. “They can make money on hardware and service, not to mention design, consulting, project management, form building, data integration, reporting, and data analysis.” He says this allows resellers to earn more revenue, which “keeps them motivated and continues to invest in our future.”
Stay in control
From our collection of software developer magazine articles on this topic, a number of bylines and interviews dealt specifically with point-of-sale (POS) reseller channels, but the advice may be valuable for a wider audience. .
For example, Justin Zeigler, director of product strategy at Datacap Systems, says that when it comes to value-added resellers (VARs), it makes sense to think of them as franchisees, requiring extensive training and using standardized marketing. This will ensure that your channel uses standardized messages to consistently represent your product.
Walk a mile in the dealer’s shoes
Jim Roddy, ISV Reseller and Business Advisor at Worldpay, recommends being careful about the relationship you build with your distribution partners. “Don’t build an adversarial relationship — don’t treat resellers as a sales force you can give orders to,” says Roddy. Instead, he says to remember the challenges they face on a daily basis, keep the lines of communication open, and provide them with the support they need to succeed.
It’s never too late to improve
Whether your reseller channel is new or established, take stock of your channel program in light of the advice in these articles and, if necessary, develop a plan for change. The time you invest in your reseller program will not only translate into greater success for your channel partners, but will also provide you with a return on investment in the form of more sales and business growth. 