Bruce Wirt is a passionate speaker that is able to connect with audiences of varying demographics by way of energy and enthusiasm, carrying almost 20 years of telecommunications experience, holding various management and Senior Level positions across the industry. Bruce’s expertise is in building and growing sales distribution channels, maximizing productivity minimal overhead. During his tenure at NetCarrier, Wirt has achieved exponential sales growth, seeing annual revenues nearly triple during the seven year period. Notable accomplishments during that span include retaining more than 85% of the acquired customer base following the acquisition of SniP Communications’ assets in 2010, the successful creation and launch of NetCarrier’s unique VAR program, and most recently leading the expansion of NetCarrier from a regional CLEC into a national solutions provider. Today, Bruce is the Vice President of Channel Sales at Telesystem, carrying the task of growing the midwestern cable and fiber provider into a national powerhouse. Wirt’s channel sales philosophy is consistent and unwavering. He has been outspoken about active engagement in the channel, carriers and master agents abandoning smaller partners over failed revenue commitments, and the need for the master agent community to focus on partner education to prevent further commoditization of the telecommunications industry.
4. 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
5. 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?
7. 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
8. 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
9. 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
10. 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
11. 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
12. 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
13. HOW TO STRUCTURE
YOUR CHANNEL
“Efficiently is doing things right. Effectiveness is doing the
right things efficiently”
15. 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
16. 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
17. 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
18. 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
19. 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
20. 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”
21. 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
22. BEST PRACTICES
• ACCOUNTABILITY
• ACCOUNTABILITY SHOULD NOT BE VIEWED AS A CONSEQUENCE FOR
POOR PERFORMANCE, BUT RATHER AN UNWAVERING REQUIREMENT
FOR SUCCESS
23. 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
24. NOT ALL AGENTS ARE CREATED EQUAL -
HOW TO STRUCTURE COMMISSIONS
Master Agents
Value Added Resellers
Independent Agents &
Consultants
Referral Partners
25. 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
27. 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
28. 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
29. 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
30. 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
31. 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
32. 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.
Intro and background
We’ll talk about what channel Sales is, why it works, and how to implement a strong channel program.
Leadership is about your ability to shape the path to the goals of your followers, not about pushing them to meet your goals. This is the fundamental rule for any channel program. Look to your partners and find out how you can use what you have to help THEM succeed. Don’t push them into doing ONLY what makes YOU succeed.
Leadership is about your ability to shape the path to the goals of your followers, not about pushing them to meet your goals. This is the fundamental rule for any channel program. Look to your partners and find out how you can use what you have to help THEM succeed. Don’t push them into doing ONLY what makes YOU succeed.
Your network is your net worth. Relationships are everything in business. Channel sales puts our network to work for us, literally.
Your network is your net worth. Relationships are everything in business. Channel sales puts our network to work for us, literally.
Home office based agent.
Usually works on one deal at a time.
VARs are valuable because they have sticky relationships and already have trusted advisor status with their products.
Unless there is a truly unique product, direct sales is very difficult and expensive in the commoditized marketplace.
Let’s talk about how to:
Recruit
Train
Sell
And Support your partners
Let’s talk about how to:
Recruit
Train
Sell
And Support your partners
Sometime different channel managers and sales engineers have different ways of delivering your value proposition to the market. You want to make sure that the organizational message is consistent and concise.
Sales people may not agree with your value proposition; sales meetings that give your team members a true voice are vital to keeping everyone on the same page. If pros and cons are discussed prior to implementing, there will be less room for variance.
Trainings are long and boring to those who are forced to attend. Make training interactive and dynamic, and no more than an hour on 1 or 2 product sets at a time. Trainings with active partners should also happen on a quarterly basis.
Find new things to talk about. Train not just on technology, but the hows and whys of selling it. Case studies are key.
This is important. Sell WITH the seller, not FOR the seller!
Remember that you want the agent to bring the client already having achieved trusted advisor status, and your staff delivers your value prop. This is the most effective way to sell. Not every agent will be capable of this, but this is your most valued agent.
In a purely commoditized product set (i.e. cable bandwidth, POTS lines) you can let the agent run with the sale from beginning to end. Price and need will decide your sale. But when you’re trying to sell an application, you don’t want the agent being your sole voice.
I’ve seen channel managers develop into order takers, saying that it’s more important for them to be behind their desk providing quotes and taking orders than out selling with your partners. This is a very bad habit, and that’s why support is important.
Sales support should essentially be the inside presence of your sales staff.
They must be strong communicators with personality. They must learn basic sales skills over time.
These are the people that your sales staff should be able to quickly go to for support: Quotes, paperwork, etc.
Avoid paying high commissions to agents that engage your staff in discovery meetings. This defeats the purpose of the channel. Remember, you are paying a residual and sometimes a spiff to have a qualified opportunity. You can take these types of agents, but they should be few. Consider rolling them under a master agent that can provide more intensive support.
Spiffs should be used as tools to help your sales staff.
Paying on the sale puts partners on your monthly sales cycle.
Spiffs can also be tied to trainings.
Sales management should approve agent contracts. Sales people can be tempted by a dangling carrot to give away more than they should.
Oz principle
PIL Tools
Remember, you are paying a residual because you want the agent to help manage the account. Some agents want a structure where the customer relationship lies solely with them, and where they have the right to move the customer at any time. I caution you to manage this carefully. You don’t want to pay acquisition costs over and over because your channel flips customers in exchange for spiffs.
Inaccuracy is a relationship killer. Partners do not want to look bad in front of their customers, no matter how much money you are paying them.
Evaluation shouldn’t come just from the interview process, but also from their work in sales support.
Talk about the appointment formula
Sales engineer should be extension of management