in the network

WE POSED SEVERAL QUESTIONS TO MEMBERS OFUNKEDIN, A SOCIAL NETWORK OF PROFESSIONALS. HERE ARE SOME RESPONSES:

Why should a company employ channel partners, and what companies are best positioned to take advantage of a third-party sales channel?

"Because it is a great way to reach a huge

* "Quick market entry-building a network of partners assumes the local market contacts are established or easy to develop and the business can take off with minimum cost and maximum results. Flexible companies, with good communication programs in place, structured operational processes, and strategic planning...are always going to derive the best results [from] partner programs." -Ruxandra Dariescu, Managing Director, avanTARGET

* "For a growth company, a third-party sales channel can be a lower-cost approach to expanding your sales force, and if the channel partners are well known and respected in the target markets it can provide your company a legitimate profile within-and reduce barriers of entry intonew markets. It also reduces the cost of setting up a new channel partner, making your channel a scalable ecosystem of partners. However, a company needs to have a proven and easily repeatable sales process, as channel partners usually are not interested in helping you define that process." - Troy Wing, CTO, Forcelogix

What makes a good partner program? And what do you have to consider when building one?

* "We are still working on our VAR program, but I think what has helped me most is to have a good working relationship. I get referred into a lot of clients by IT support vendors-they know that I will support them and we can speak each other's language during installation and support phases." -Misty Khan

*"[The] first element to consider is the criteria of selecting partners. Make sure there are individual partner targets and the support tools are in place. Good programs involve long-term management, regular communication, regular reviews, and a lot of new customers signed up." -Ruxandra Dariescu

*"The key is low cost of sales. First you need to identify, within your own sales group, the bottlenecks to revenue growth. This could be new verticals, or geographical issues. Then, when qualifying prospective partners, you need to assess whether what they bring to the table (resources, reputation, prospects) will solve these bottlenecks. Any noncompete terms must have expirations and 'out' clauses for missed targets, to apply pressure on nonperforming partners and to give you the option on selling into the same markets. From the partner's perspective, equitable margins, achievable but [sizable] targets, long enough noncompete periods, repeatable and trainable sales processes, and low cost of sales will make the program attractive. Regular communications, training, and a good and informative partner portal all help. Another key-and probably obvious-point for a successful partnership is that the service or product you are selling is complementary to the core competencies the partner offers." - Troy Wing