How to Build a Successful Partner Channel Strategy (when the clock is ticking!)

By Mike Martin, Launch GTM CEOInsights

You’ve decided you need a channel partner program to scale revenue at your ISV or tech startup. Now what?

Once that decision is made—be it a mandate from the board or a decision from the C-suite—the clock starts ticking, and the revenue pressure is real.

Many organizations default to hiring a sales leader to build their channel partner program. The thinking is that top-notch salespeople can create momentum in 1 – 3 months, so building a successful channel partner program won’t be too different. Others look internally to trusted resources with little or no channel experience to get the job done. In both cases, the new leader is expected to build a program, recruit partners based on existing relationships, find new opportunities and close more revenue faster than the direct team can.

The problem is it usually doesn’t work out that way.

Instead, revenue pressure pushes the new leader to pull together a haphazard program with no processes and to recruit partners (maybe even the wrong ones!) with no reporting, visibility or accountability into their activities.

New channel partners struggle to produce as they jump from shiny object to shiny object since the path to revenue is not straightforward or well-orchestrated. They end up having a bad experience and engagement drops.

Unfortunately, many companies simply underestimate the amount of time, money and expertise that is needed to build and launch a successful channel partner program. And because of that, resources get burned out and revenue expectations aren’t met. To illustrate my point, let’s take a deeper dive into the table stakes of successful channel partner programs and common misconceptions that go along with them.

Table Stakes for Channel Programs

  1. A “product” to sell to your channel partners, i.e., a simple channel program for your chosen route or routes-to-market with basic partner tools
  2. A basic engagement process for execution
  3. Human resources to recruit and sell through (the less the better)
  4. Program reporting (accountability)

Misconception #1

My new channel sales leader will handle channel-program table stakes 1-4.

Not likely. He or she probably can’t due to revenue pressure, capacity, know-how and a lack of resource capabilities. That means more time than expected will be spent building the program and supporting infrastructure.

As a CEO, you want your channel sales leader selling, not building. And if we’re honest, we know that great salespeople usually aren’t as conscientious as their program manager counterparts in systematically analyzing and building processes Better to keep sales leaders focused on sales.

Misconception #2

My trusted internal resource(s) with little-to-no channel experience will be successful.

Wrong again. The issue with this approach is that it not only risks the lack of experience but also introduces an opportunity cost as your trusted internal resource probably has a day job. Not only are you risking those daily tasks not being completed, but you may also be heading towards turnover due to burnout and pressure—a place none of us want for our good employees.

Misconception #3

You’ll find effective ways to fill capacity, know-how and capability gaps with third parties.

Outsource it, right? Maybe. Keep in mind that while there is an abundance of talented channel consultant resources out there ready to help, they are not inexpensive nor necessarily fast. That’s not their business model. Additionally, you may be overlooking profitable routes-to-market (like choosing a Managed Service Provider (MSP) over a Tier-2 distribution model) that channel consultants can help you address but remember that the engagement model, tools and agreements still vary by route-to-market, and time is not on your side.

So, what’s the best and fastest way to build a successful channel program when the revenue clock is ticking?

This very question is the reason I founded Launch GTM: To help ISVs and tech start-ups build, launch and land revenue through the channel faster. Our tag line is “Your Channel. Built Right.” That’s because our SaaS-based channel automation platform ensures you model your most successful routes-to-market first (to avoid choosing the wrong types of partners—an absolute pre-scale killer for start-ups), then automates your chosen strategy, operationalizes it with the right engagement processes and agreements to ensure proper controls, and provides reporting, visibility and acceleration through tools and channel marketing that drive program accountability.

Most competitors in our space provide a partner portal with a partner relationship management engine and channel marketing automation. We don’t think that’s enough, nor do we think this truly drives speed-to-revenue. That’s because standing up a channel program is hard and time consuming, and when your channel strategy and program are poorly conceived and built, you inevitably won’t meet your intended revenue targets.

Our approach helps ISVs and tech start-ups stand up their channel program (by individual route-to-market) in as little as 10 days. Channel sales leaders can then run with it, doing what they do best: Sell.

We even ensure that your overall strategy and program are reviewed regularly as you add additional routes-to-market.

So, what do you get with Launch GTM? Guided-journey technology that automates and accelerates the fundamental building blocks of your channel program by route-to-market. This approach also ensures you can get more done with less resources, and that the proper operational controls and visibility are in place.

To learn more about Launch GTM or to schedule a demo, contact us.