Reseller
Limitations
You must be aware of the influence of your
reseller base on your evolving strategy. A strategic change
in your product focus includes a reset of the
channel component. It can be painful and costly to make
significant changes. There are contractual issues, training
costs, customer ownership issues, etc. Your product strategy
planning needs to take these costs into account.
Supplier
Constraints
Reseller projections are less reliable and
unanticipated reseller sales, while welcome, can put a strain on
product availability and direct vs channel departments. This
impact is especially painful when
a
company is managing their inventory closely and the company is not the
supplier's best customer. What does a company do given a
choice
of fulfilling a key account order or a VAR order? What
measure do
you use to factor this issue into your profitability picture?
Market Coverage
An advantage of an indirect channel is their focus on the 80% of
the total market that your key account team does not focus on.
Of
course, they are focusing on the top 20% of that market. So,
your 20% plus their 16% means that 64% of your total market is
underserved. Can an indirect channel program profitably
address this
issue?
Program Metrics
How do you measure the effectiveness of a lead campaign when the leads
are allocated to your reseller partners? How do you define
effectiveness? What are you trying to measure? Is it
profitability, or reseller prospecting ability? The
metric
can be the sales cycle time or the percent of leads followed up
on. A traditional measure such as percent close rate can be
used.
Gaining visibility into some metrics is difficult.
How do
you account for cost of sales? Do you count the Marketing
departments time to generate the lead campaign? Or does that
come
out of the Marketing departments budget?