A 13-Point Channel Sales Checklist to Discover If Your Company Is Ready to Join the Channel.
Dede Haas is an award-winning high-tech sales channel professional and founder of DLH Services. As an expert in channel management, Dede has created innovative and successful channel programs and sales solutions for Fortune 50 companies. Recently, Computer Market Research (CMR) had an opportunity to discuss the 13-point Channel Sales Checklist Dede has formulated for aiding organizations in discovering if taking the channel sale route is suitable for their business model.
Q 1:Computer Market Research (CMR):
Why a channel sales checklist is necessary?
A 1:Dede Haas:
Many small technology companies, especially software companies, start off by planning to sell their products directly to the end customers. In many cases, the CEO and some members of the company take on the task of selling their products. However, at some point, the associates and stakeholders of the company realize that they would rather have their CEO attending to other company-related issues. This is when the company recognizes its need for a . Yet, the company wants to have a wider reach, but the lack of resources to hire a sales team makes them turn to the channel.
What such companies don’t realize is that partners, resellers, VARs, and system integrators are not eager or easily convinced to sell just any product. There are many steps to take and hoops to jump through before a company can create a well-tuned channel program where partners are selling their products to end customers. The important initial step for a company is to understand the channel. But first and foremost is to understand their own business and the products that they are selling. In addition, a company needs to calculate to see if they can afford to build a channel.
So, the checklist is designed to help these companies make a decision and determine if they’re financially and structurally stable enough to create, develop, and implement a channel program and start recruiting channel partners.
Q 2:Computer Market Research (CMR):
At what stage of their operation (years in business, current revenue & the need to grow sales, number of salespeople, available resources for the channel) and how often should a company consider this checklist?
A 2:Dede Haas:
Companies that want to jump into the channel really need to consider where they are in terms of years in business. For example, a company that has been in the business for 2 years can take a look at the channel sales checklist. But they are really in their infancy and their product might not be there yet for partners. So, the checklist is not ideal for a start-up.
The channel sales checklist can be used by emerging businesses or small to medium-size businesses (SMB). These types of companies should be in operation for at least 4-5 years and have current . The most important thing for these companies to consider is how much do they need to grow their sales at this stage of their existence. Another point is, do they have any sales team or are the staff and the CEO still working as salespeople. What about available resources? Do they have the resources to create channel partnerships?
The channel sales checklist asks these questions too. Before taking the time to examine the whole checklist, a company really needs to think about its readiness. They might think they are ready because they have the resources to bring in an expert to develop and implement a program and recruit partners. In that case, I suggest that they look at all 13-points on the channel sales checklist and have an open and honest discussion about their answers with members of their company.
If a company after reviewing the checklist thinks that they are not ready, then they should wait 6 months to a year and review the checklist again because things change. I even suggest that while a company is building its program they revisit the channel sales checklist to see if they are still on track and if this is really the right thing to do.
Q 3:Computer Market Research (CMR):
Who should follow the items on your channel sales checklist? (CEO, VP of Business Development, etc.?)
A 3:Dede Haas:
Well, if it’s a small or SMB the CEO is usually involved in this endeavor. At this point, the company may not have a VP of Business Development, so, anybody in the company that is going to be involved in building the channel and the ultimate decision-makers in the company should be involved. I even recommend getting the technical staff and product manager to participate. There really shouldn’t be only one person in the company answering the questions on this channel sales checklist. The questions on the checklist are varied so there may be a need for different people in the company to answer the questions.
Consequently, I think this really is a team effort because channels should be a team effort. The people who are involved in answering the questions on the checklist are not necessarily involved in developing the channel, but they should be engaged in the discussion of channel development.
Q 4:Computer Market Research (CMR):
What are the components of your channel sales checklist?
A 4:Dede Haas:
I call this list the pre-departure checklist. The components start off by asking, “do you want to grow your company?”. A lot of people start a company without having thought-a-head. They have not even considered how they are going to . This question is to make them think about why they even started their company and what they want to do with it.
My channel sales checklist doesn’t even start with a channel related question, it starts with the company. Many companies express that they want to start a channel because they have either heard about it or think they can make a lot of money. You need to start way before that by asking, is this the appropriate time? how are we going to grow our company? and why have you started your company?
The next question asks whether you know your company profile because a lot of times people start a company, but don’t know their profile. This question makes everyone involved in answering the questions on the checklist stop and think.
Don’t jump into the channel unless you are ready for it.
Other components on the checklist ask if you:
- know the purpose of your product and services
- understand your target market
- have sales and marketing goals
- are currently selling your products
The last question on the checklist asks: Are you prepared to support your partners?
These questions are designed to make you realize that starting a channel is not that easy, especially when you are a small company.
Q 5:Computer Market Research (CMR):
What would you say is the most important item on your channel sales checklist?
A 5:Dede Haas:
The most important items are the second and the third questions which are questions that make you take a closer look at your company.
The second question asks you about your company profile. This is the organization’s structure, the culture, the relationship to your employees and business partners, and your mission. I have worked with companies who have been in operation for 25 years and they still have no idea what their culture is. It is very important to get a grasp on your company’s profile and what kind of company you are.
The third question queries your understanding of the purpose of your products and/or services. This is where you want to take a deep dive into the feature and benefits of your product and/or services and how they impact the end-users.
Q 6:Computer Market Research (CMR):
What are the next steps once the checklist is complete?
A 6:Dede Haas:
Once you have filled everything out on the checklist, take a look at it as a whole and analyzing it. Answering the questions on the checklist is a process that should take some time to complete.
At this point, especially if you are a company that does not know the channel, I highly recommend bringing in a channel expert to review and assess your answers and provide you with an analysis of your answers.