Question

Topic: Other

Strategic Advise On Creating A Reseller Channel

Posted by jrickwhite on 6/8/2011 at 11:46 AM ET 2625 Points
Need advise on what to expect from those approached for creating a reseller channel to launch a new, significantly more strategic software product.

Company has a good brand awareness within its' industry but it's current product is almost a commodity, sold by a very small, direct sales channel to less than c-level management.

The nature of the new product will require a significantly more strategic sales motion; the intent for launching the reseller channel, beyond to drive great sales success, is to:
1. leverage the strategic c-level relationship resellers currently have with the customer base
2. significantly improve market coverage with customers most likely to buy
3. minimize the need for expanding (fixed cost) the current, direct channel

Resellers will be paid through price discounts, pricing will be suggested but not demanded.

So - as resellers are approached, what are the important questions they will want answered before signing on?

Please don't limit your thoughts as we aren't limiting ours. Exclusivity for a defined market is discussable. But we doubt that will by normal.
To continue reading this question and the solution, sign up ... it's free!
SUBSCRIBE
Or, SIGN IN

RESPONSES

  • Posted by telemoxie on 6/8/2011 at 12:37 PM Accepted
    the overwhelming majority of resellers and manufactures representatives (Carol not included) will expect you to provide leads. It would be nice if resellers and manufactures reps and distributors would put their emphasis into creatively, aggressively, diligently marketing unique products. Unfortunately, this is rarely the case with resellers. I imagine you could get more attention from manufactures reps than from resellers, but please don't expect a diligent and long-term educational campaign from them.
  • Posted by Peter (henna gaijin) on 6/8/2011 at 12:40 PM Member
    A clarification - when you say you are setting up a new reseller channel, you are actually looking to work with resellers who are currently out there who have complementary products and already reach the target market you are after? So the reseller firms are not new, just new for this manufacturer? Just checking.

    At a big picture, resellers are going to what to know what is in it for them (what share they will make, is the product one they will be able to sell, etc.), what support you will provide (technical support, literature, exclusive territories, etc.), etc.
  • Posted by Peter (henna gaijin) on 6/8/2011 at 12:40 PM Accepted
    A clarification - when you say you are setting up a new reseller channel, you are actually looking to work with resellers who are currently out there who have complementary products and already reach the target market you are after? So the reseller firms are not new, just new for this manufacturer? Just checking.

    At a big picture, resellers are going to what to know what is in it for them (what share they will make, is the product one they will be able to sell, etc.), what support you will provide (technical support, literature, exclusive territories, etc.), etc.
  • Posted by jrickwhite on 6/8/2011 at 1:28 PM Author
    Thanks for the great comments.

    The resellers are already out there. Some are pure resellers; others representing their own products but with an expanded portfolio of 3rd party product / services. Our intent is to engage either - the selection driven by their distribution footprint and their c-level, strategic familiarity.

    The big picture comments are helpful. Is there more information on the support they will expect? And to what extent they will expect marketing support and the type of it?

    Keep 'em coming folks. All appreciated!
  • Posted by telemoxie on 6/9/2011 at 7:13 AM Member
    regarding specific information: I have well over a dozen years of specific relevant experience.

    I worked for a computer software vendor in the early 1980s and attempted to recruit resellers who would actively promote my software product (an early CRM tool).

    Finding none, I returned to the retail channel and attempted to operate as "an ideal reseller", specializing in the targeted marketing of unique and specialized innovative products.

    When this failed (owners of reseller organizations are not interested in loyalty to vendors) I began to offer my services as a hired gun out bound marketing guy. I have worked with dozens of resellers in a variety of industries.

    I don't believe that I can summarize a lifetime of work experience in this little box. I would be be happy to schedule a time to talk with you by telephone. If you click my name, you can find my e-mail address.

    Send me an e-mail... let's talk. No charge.
BACK TO TOP

Post a Comment

Related Discussions

Community Info

Top 25 Experts
(Other)