1.
FUNDAMENTALS
“YOU CAN GET ALMOST ANYTHING YOU
WANT IN YOUR LIFE IF YOU HELP ENOUGH
OTHER PEOPLE GET WHAT THEY WANT”
- ZIG ZIGLAR

2.
FUNDAMENTALS

3.
WHAT IS CHANNEL SALES?
SELLING THROUGH VARIOUS TYPES OF DISTRIBUTORS
TO MAXIMIZE PRODUCT EXPOSURE WHILE
MINIMIZING OVERHEAD
• CAST A WIDE NET
• DIRECT SALES REQUIRES BRICK AND MORTAR
• TAKE ADVANTAGE OF EXISTING RELATIONSHIPS
• MINIMIZE SALARIES, WAGES, AND BENEFITS

4.
WHAT IS CHANNEL SALES?
SELLING THROUGH VARIOUS TYPES OF
DISTRIBUTORS TO MAXIMIZE PRODUCT
EXPOSURE WHILE MINIMIZING OVERHEAD
•GET TO THE TRUSTED ADVISOR, WRITE A CHECK,
CLOSE THE DEAL. SIMPLE?

5.
TYPES OF
AGENTS

6.
INDEPENDENT AGENT
• SOLO DISTRIBUTOR WHO TYPICALLY SELLS
MULTIPLE PRODUCTS
• MAY BE A RETIRED PROFESSIONAL OR A
PROFESSIONAL OF ANOTHER INDUSTRY WHO
SELLS YOUR PRODUCTS ON THE SIDE
• THESE AGENTS HAVE PRODUCT KNOWLEDGE
RANGING FROM INTERMEDIATE TO EXPERT

7.
VAR - VALUE ADDED RESELLER
• A BUSINESS THAT TAKES YOUR PRODUCT AND
COMBINES IT WITH THEIR OWN PRODUCT TO
CREATE A VALUE-ADDED OFFERING
• MAY INVOLVE A BRICK AND MORTAR LOCATION
(I.E. WIRELESS RETAILERS, COMPUTER REPAIR
SHOPS)
• IN THE IT/TELEPHONY INDUSTRY, THIS MAY BE A
PBX VENDOR OR MANAGED SERVICES PROVIDER

8.
CONSULTANT
• INDEPENDENT PROFESSIONAL OR ORGANIZATION
THAT PROVIDES PRODUCT AND BILLING
ANALYSIS TO THE END-USER, TYPICALLY FOR A
FEE
• CONSULTANTS MAY SELL YOUR SERVICES AS A
SMALL PART OF THEIR OVERALL BUSINESS
MODEL

9.
REFERRAL AGENT
• A HANDS-OFF REFERRAL SOURCE WITH LITTLE OR
NO KNOWLEDGE OF THE PRODUCT OR SERVICE
BEING REFERRED
• MAY BE A BUSINESS IN ANOTHER INDUSTRY
WITH COMMON CLIENTS
• HAS LITTLE IMPACT ON THE SALES PROCESS

10.
MASTER AGENT
• LARGE AGENT THAT TYPICALLY NEGOTIATES HIGH-
VOLUME AGREEMENTS WITH MULTIPLE PROVIDERS
AND SHARES THE COMMISSION BENEFITS WITH
THEIR SUBAGENTS, WHICH CAN BE IN ANY
CATEGORY
• ALSO TYPICALLY PROVIDES SUPPORT AND
TRAINING FOR PARTNERS (SUBAGENTS)
• PUTS ALL OF THE OTHER PARTNERS TOGETHER
UNDER ONE UMBRELLA

11.
WHY CHANNEL SALES MAKES SENSE
• EACH POTENTIAL CUSTOMER MAY HAVE AN IT VENDOR, A TELEPHONE VENDOR, AND AN INDEPENDENT
CONSULTANT THAT INFLUENCE THEIR BUYING DECISIONS
• DIRECT SALES PROFESSIONALS HAVE THE DISADVANTAGE OF ATTEMPTING TO COMPETE AGAINST ALL
THREE POTENTIAL INFLUENCERS
• THE DIRECT SALES PERSON IS ALSO SADDLED WITH THE STIGMA OF REPRESENTING ONE VENDOR, AND IS
NOT LOOKED AT AS OBJECTIVE
• AS THE POTENTIAL SERVICE PROVIDER, IT IS MUCH BETTER TO CREATE RELATIONSHIPS WITH THE
INFLUENCERS THAN TO COMPETE AGAINST ALL THREE

12.
HOW TO STRUCTURE
YOUR CHANNEL
“Efficiently is doing things right. Effectiveness is doing the
right things efficiently”

13.
PARTNER RECRUITING

14.
CONCENTRATED
RECRUITING
A SUB-DEPARTMENT THAT FOCUSES EXCLUSIVELY ON
RECRUITING NEW PARTNERS
• PRO: HIGHER VOLUME OF POTENTIAL PARTNERS
• CON: RECRUITERS HAVE NO RELATIONSHIP WITH
PARTNERS AFTER AGREEMENT IS SIGNED
• CON: RECRUITERS ARE INCENTED TO SIGN AGENTS
WITH NO INFLUENCE ON PRODUCTIVITY

15.
INCLUSIVE RECRUITING
CHANNEL MANAGER IS RESPONSIBLE FOR RECRUITING NEW PARTNERS
• PRO: CHANNEL MANAGER CREATES LASTING RELATIONSHIP DURING
RECRUITMENT PROCESS
• PRO: PARTNERS SIGN-ON FEEDS DIRECTLY IN TO SALES QUOTAS – CPM
WEEDS OUT UNPRODUCTIVE AGENTS
• CON: IF CHANNEL MANAGERS CONSISTENTLY HIT SALES QUOTA, THEY
LOSE INCENTIVE TO RECRUIT NEW AGENTS
• CON: MOST AGENTS FIZZLE OUT AT SOME POINT AND CHANNEL MANAGER
CAN END UP FAILING

16.
TRAINING
• CONSISTENT MESSAGE – MAKE SURE THAT YOUR ENTIRE
SALES STAFF IS DELIVERING THE SAME VALUE PROPOSITION
TO THE CHANNEL
• TRAIN FREQUENTLY – FOCUS ON DIFFERENT PRODUCTS AT
DIFFERENT TIMES

17.
SELLING TOGETHER
• SELL WITH THE SELLER – THE CHANNEL MANAGER SHOULD BE
THE EXPERT ON DELIVERING YOUR VALUE PROPOSITION; THE
AGENT HAS THE TRUSTED ADVISOR STATUS WITH THE
CUSTOMER – TOGETHER, THE COMBINATION IS PERFECT
• SOME COMPANIES PLACE SALES RESPONSIBILITY SOLELY ON
THE AGENT, LOWERING THE CLOSE-RATIO

18.
SALES SUPPORT
• QUOTING SUPPORT – DEVELOP TOOLS TO QUICKLY GET
AGENTS THE QUOTES THAT THEY NEED; TURNAROUND TIME
WINS DEALS
• TOOLS MUST BE USER FRIENDLY
• PAPERWORK SUPPORT – YOUR STAFF SHOULD BE
DEVELOPING CUSTOMER CONTRACTS, NOT THE AGENTS
• SALES ENGINEERING SUPPORT – DEPENDING ON THE AGENT
TYPE, THIS MAY BE THE ONLY TECHNICAL RESOURCE DURING
THE SALES PROCESS

19.
ORDER MANAGEMENT
• SINGLE POINT OF CONTACT FOR POST-PROCESSING
• ORDER PROCESSING SHOULD BE HANDLED BY DEDICATED
SUPPORT STAFF, NOT SALES REP
• ORDER PROCESSING EMPLOYEES SHOULD HAVE “SALES
PERSONALITY”

20.
BEST PRACTICES
• CHANNEL PARTNERS DOES THE PROSPECTING, THE CHANNEL
MANAGER HELPS TO CLOSE THE DEAL
• AVOID PAYING HIGH COMMISSIONS TO HIGH-MAINTENANCE PARTNERS
• DON’T BASTARDIZE THE CHANNEL BY PAYING THE SAME
COMMISSIONS TO EVERYONE
• MANAGEMENT SHOULD REVIEW AND APPROVE CONTRACTS TO AVOID
TEMPTED SALES PROFESSIONALS
• FORCE ACTIVE ENGAGEMENT FROM YOUR PARTNERS

21.
BEST PRACTICES
• ACCOUNTABILITY
• ACCOUNTABILITY SHOULD NOT BE VIEWED AS A CONSEQUENCE FOR
POOR PERFORMANCE, BUT RATHER AN UNWAVERING REQUIREMENT
FOR SUCCESS

22.
NOT ALL AGENTS ARE CREATED EQUAL -
HOW TO STRUCTURE COMMISSIONS
• MASTER AGENTS – HIGH VOLUME MASTER AGENTS MAXIMIZE PRODUCTIVITY BECAUSE THEY MANAGE ALL OF THE
SUBAGENTS AND PROVIDE A SINGLE POINT OF CONTACT; THESE ARE TYPICALLY THE MOST PRODUCTIVE AGENTS AND
SHOULD BE PAID THE HIGHEST
• VARS – THESE AGENTS SHOULD ALSO BE PAID NEAR THE TOP OF THE COMMISSIONS SCALE BECAUSE THEY TAKE THE TIME
TO UNDERSTAND YOUR PRODUCT AND OFTEN PERFORM INSTALLS AND SUPPORT, SAVING YOUR ORGANIZATION ON SG&A
COSTS
• CONSULTANTS & INDEPENDENT AGENTS – THEY REQUIRE MORE RESOURCES FROM YOUR ORGANIZATION AND OFTEN BRING
IN MULTIPLE PROVIDERS TO EACH OPPORTUNITY;THESE AGENTS SHOULD BE PAID LESS
• REFERRAL AGENTS – THEY PROVIDE COLD SALES OPPORTUNITIES AND MAY NOT EVEN HAVE A TRUSTED RELATIONSHIP WITH
THE END-USER; THESE AGENTS SHOULD BE AT THE LOWEST END OF THE COMMISSIONS SCALE

23.
NOT ALL AGENTS ARE CREATED EQUAL -
HOW TO STRUCTURE COMMISSIONS
Master Agents
Value Added Resellers
Independent Agents &
Consultants
Referral Partners

24.
SPEED AND ACCURACY IS KEY
• AGENTS WANT ANSWERS, AND THEY WANT THEM NOW *EVEN IF THEY DON’T NEED THEM UNTIL LATER*
• AGENTS WILL TYPICALLY LEAN ON THE PROVIDER THAT HELPS THEM TO WIN
• AGENTS DON’T LIKE TO TELL THEIR CUSTOMER THAT THEY’RE WAITING ON THE PROVIDER TO TURN
AROUND A QUOTE – BUT THEY ALSO DON’T LIKE TO GO BACK TO THE PROVIDER TO CORRECT INACCURATE
PROPOSALS
• IN COMMODITY SELLING, THE FIRST QUOTE IN HAS THE ADVANTAGE OF FIRST IMPRESSIONS
• IF QUOTES ARE CONSISTENTLY INACCURATE, AGENTS WILL AVOID THAT PROVIDER NO MATTER HOW
STRONG THEIR PRODUCT IS

25.
LET’S BUILD OUR PROGRAM!

26.
SALES SUPPORT
• THE MEAT OF THE WORKLOAD OCCURS HERE
• LOOK FOR ENTRY-LEVEL PROFESSIONALS WHO ARE GOAL-ORIENTED, HIGHLY MOTIVATED, AND HAVE SALES
ASPIRATIONS
• THIS IS THE BREEDING GROUND FOR YOUR FUTURE SUPERSTARS – THEY WILL LEARN ABOUT ALL
ASPECTS OF THE SALES PROCESS HERE AND DEVELOP IN TO WELL-ROUNDED PROFESSIONALS

27.
CHANNEL PARTNER MANAGERS
• IDEALLY, CHANNEL PARTNERS MANAGERS WILL COME FROM THE SALES SUPPORT DEPARTMENT
• CANDIDATES SHOULD BE HIGHLY-ORGANIZED, GOAL-ORIENTED, AND RESPONSIVE INTERPERSONAL
COMMUNICATORS

28.
SALES LEADERSHIP
• SALES ENGINEERING
• AN EFFECTIVE PRESENTATION FORMULA INCLUDES AN AGENT, CHANNEL MANAGER, AND SALES ENGINEER
• SALES MANAGER
• IDEALLY, THIS PERSON GROWS WITHIN THE ORGANIZATION FROM ENTRY-LEVEL ON UP

29.
ACCOUNT RETENTION
• MANY CHANNEL-BASED ORGANIZATIONS LEAVE THE ACCOUNT RENEWAL IN THE HANDS OF THE AGENTS
• A HYBRID APPROACH TO ACCOUNT RETENTION CAN SIGNIFICANTLY REDUCE CHURN AND INCENT AGENTS
TO CHOOSE YOU AS THEIR LONG-TERM PROVIDER
• HAVE ACCOUNT MANAGERS THAT ARE SEPARATE FROM YOUR CHANNEL MANAGERS
• ACCOUNT MANAGERS MAY GROW UP THROUGH CUSTOMER SUPPORT GROUP WITH A FOCUS ON
PROBLEM-SOLVING
• CONTINUOUS CONTACT THROUGHOUT THE CONTRACT TERM LEADS TO A SMOOTHER RENEWAL

30.
KEY POINTS TO TAKE AWAY
• GROW YOUR ORGANIZATION FROM THE GROUND UP
• HIGHLY-PAID RECRUITS CAN SOMETIMES PROVIDE A QUICK BOOST, BUT THE FOUNDATION SHOULD COME FROM
WITHIN
• INTERVIEW CANDIDATES BASED ON THEIR GOALS AND DESIRE FOR SUCCESS RATHER THAN THEIR LIST OF
CONTACTS
• SALES SUPPORT PROFESSIONALS SHOULD BE HIRED WITH THE GOAL OF MOVING UP IN THE ORGANIZATION
• CHANNEL PARTNERS MANAGERS MUST BE QUICK, KNOWLEDGEABLE, AND ACCURATE
• BUILDING FROM THE INSIDE ENSURES A COMMITMENT TO THE ORGANIZATION – NOT JUST TO A SALES QUOTA;
EMPLOYEES WHO FEEL APPRECIATED WILL, IN TURN, TAKE CARE OF YOUR CUSTOMERS

31.
KEY POINTS TO TAKE AWAY
• NO MATTER WHAT YOUR POSITION IS, REMEMBER THAT YOU ARE IN PLACE TO PLAY A SUPPORTING ROLE;
WHETHER YOU ARE SUPPORTING THE PERSON WHO HIRED YOU, OR YOUR PARTNER WHO IS RELYING ON
YOU FOR THEIR LIVELIHOOD.
• REPEAT BUSINESS IS WHEN PEOPLE DO BUSINESS WITH YOU OVER AND OVER AGAIN. LOYALTY IS WHEN
PEOPLE TURN DOWN BETTER OFFERS TO DO BUSINESS WITH YOU. STIVE FOR LOYALTY.

32.
ANY QUESTIONS?