Building a SaaS Channel: A Step-by-Step Approach

gabonesedestructionDéveloppement de logiciels

17 févr. 2014 (il y a 3 années et 7 mois)

82 vue(s)

1

Ted Finch

President, Chanimal Marketing

www.chanimal.com


Chanimal Presents…

Building a SaaS Channel:

A Step
-
by
-
Step Approach

2

Overview
-

Contents


Channel


Defined (Level
-
Set Group)


SaaS Differences, Concerns, Trends


Phase One


Defining (or Re
-
Defining) a Channel Program


Phase Two


Recruiting a Channel


Phase Three


Enablement


Channel Management


Ongoing Motivation



Where to Learn More…

3

Background


Chanimal


Chanimal


The Ultimate Resource for Software Marketing at
www.chanimal.com
. Celebrating it’s 10
th

year anniversary. 500+ pages of online content. Ranked #1 by Google (channel marketing & sales).


Short for
“Channel Animal,”

Ted Finch


23 Years of professional marketing


As co
-
founder and VP of Sales & Marketing, built world’s largest high
-
tech product launch service
company from 13 to over 4,000 people while executing the launch of over 400 products for over 150
companies (
Microsoft, IBM, Adobe, HP, WordPerfect, Intel, Ashton Tate, Sony, Citrix, Autodesk, ATI,
Creative Labs, Disney, Canon, Corel, Aldus, Compaq, plus more
)


Wrote marketing plan & published Netscape Navigator (#1 best
-
selling software in the world at the
time) & AOL. Helped inaugurate .dot com era.


Wrote marketing plan, helped finance ($27 million funding) & form Red Storm Entertainment with Tom
Clancy (Press release on USS Nuclear Sub Cheyenne, ABC, CBS, NBC)


Former VP Marketing at Goldmine (#1 Rated SFA), VP Marketing at $4 billion Harcourt (General
Cinemas, Sea World, HRW), Sr. VP Marketing at $33 billion Motorola (sat on Marketing board), VP at
$130 billion GE.


Achieved five successful acquisitions.


Speaker at dozens of conferences and events, quoted in over 100 trade publications & high
-
tech books,
produced,
“How to Finance a High
-
Tech Start
-
Up”

Video


Has executed reseller programs for over 270 companies

4

Terminology


Level set the group


Channel.
How a company sells their product


Direct.
Company to End User


Indirect.
Company to middle man to customer


Reseller.
Anyone that resells product or service


Affiliate.
Refers

does not sell (but still a channel)


Partner.
Legal term


but means reseller


VAR.
Value Added Reseller (ads value with installs, integration, training, etc.)


System Integrator.
Development capabilities.


Distributor.
Wholesale distributor


MDF.
Market Development Funds


Co
-
op.
Co
-
operated funds


Channel Conflict
. Resellers and/or vendor compete for same sale


5

Note


My slides will have a lot of density


Not because it makes for the best slide…


But because it will be easier for you to remember what was
said when you want to transfer this information to team
members who couldn’t attend


Prepare for a high speed delivery


Take quick notes

6

Three Phases

1.
Definition Stage


Determining the elements of your reseller partner program

2.
Recruiting


Finding enough of the right kind of resellers

3.
Enablement


Ensuring they have everything they need to sell & support


Training (product, market, competition, resources, certification)


Sales tools (presentations, demo scripts, e
-
mail templates, etc.)


Systems (content/lead portal, forum, deal registration)


Leads, model calls, coaching calls


Motivation (contest, recognition, news)



7

Two Things Resellers Look For

1.
Is your
product competitive
?

2.
Can I make any money

working with you?


Do you have competitive margins?


Is there a lot of competition in my area/region?


Will you train me and my team?


Do you have channel conflict (direct sales competes)


Deal registration


Well prepared sales tools (PowerPoint, market info, demo
scripts, sales dialogues, content portal, etc.)


Determined by your partner program


8

Defining Your Partner Program


Structure


Levels, margins, requirements


Sales Tools


Portal site (bucket of content)


Market info, competitive analysis, spec sheets, e
-
mail templates, white
papers, videos, case studies, sales presentations, brand guidelines, reseller
forum


Technical & Sales Support & Training


Lead Generation & Sales Help


Requirements


Reseller Experience



9

Defining Your Partner Program


Have a free comprehensive spreadsheet at Chanimal.com that
shows all partner features. It can be used to compare your
program to others or make sure you cover all the bases.



10

Defining Your Partner Program


Structure


Levels


Authorized
. No quota, no commitment.
Low

margin.


Gold
. Quota, plus 1
st

level certification.
Medium

margin.


Platinum
. Higher quota, plus 2
nd

level certification.
Highest

margin.


Why?


“Shared” sales force. You want them to
prefer

to sell your product


Help create dealer loyalty. To maintain their level, must meet
quota. If sell competitor

risk missing quota = increase loyalty


Help you decide who gets any leads (highest level gets most leads)


Concerns…


11

Defining Your Partner Program


Structure


Concerns with levels


Partners fear can’t compete if they have to come in at the lowest
level


So, grandfather all new partners into the middle Gold level for the
first 90 days. Longer for a new program.


Require they meet minimum training goals, some minimum revenue


For a new channel program


Usually takes about 6 months (depending on sales cycle) to determine
what the typical revenues for your best partners is

before you can
setup a quota range (or it is not fair)


After you set the level requirements

then give 3 months to
transition before moving down, staying or moving up


12

Defining Your Partner Program


Portal site (bucket of content)


Generic to start with, later it is personalized (unique content per
partner with their leads, their plan of action, their deals, etc.).
PRM application.



13

Defining Your Partner Program


Sample portal


chanimal.com/vars/portal



43 page sample partner
portal with examples for all
of the content

14

Defining Your Partner Program


Sales & Marketing Tools


(Within Online Portal)


Market information


Which market segment uses your
product


Competitive Analysis


Why should someone buy YOUR
application


Product Spec Sheets


Ad Templates (if you have any)


E
-
mail Templates


Proven e
-
mail samples to help them
promote your product


White Papers


Case Studies and/or Testimonials



Sales Presentations (PowerPoint)


Brand and Logo Guidelines


Graphics Library


Reseller Forum


Helps resellers collaborate on deals


Also see “Saga Consulting”



These are most of the
“deliverables” to put together



15

Defining Your Partner Program


Program Decisions & Policies


Product Training


New programs have low barrier to entry

free training


Mature programs have barriers

paid training & pricey
certification (i.e., Microsoft, Salesforce)


Typically free video training (Camtasia)


See
www.interspire.com

(comprehensive)


See
www.planswift.com

(over 80 free videos by topic)


Dedicated Sales Rep


Small companies


a given (only 1


2)


Large companies

a perk to have a dedicated person to help you

16

Defining Your Partner Program


Program Decisions & Policies


Reseller Tech Support


Small company


not a big deal (not a lot of support needs)


Large company


resellers need a hotline where they don’t have
to wait in que (especially if they are on site)


Pre
-
Sales Support


Online RMA (Hardware, n/a with SaaS)


System Configurator


Needed when an application is complex and only supports select
hardware (i.e., GE Security)

17

Defining Your Partner Program


Program Decisions & Policies


Annual Partner Meeting


Start with a Webinar. 2
-
4 hours. This will work for starters.


Can grow to a multi
-
million annual event within a large
company


The equivalent of an on
-
site national sales meeting


New product introduction


New policies, pricing, competition, alliance add
-
on products, etc.


FAE Support (not typically needed for SaaS)


Pre/Post Sale Engineer (not typical)

18

Defining Your Partner Program


Certification Program


Designed to help partners


Get up to speed on the product


Helps them make money from pro services


Provide better 1
st

and 2
nd

line of support


Better integrate with the application


Can

be less rigorous with SaaS since the network is pre
-
configured. Still some major integration, import, setup, etc.


Creates dealer loyalty (more invested)


Tied to the reseller levels (Gold, Platinum)


Program material decided after 1
st

3
-
6 months


Find areas of greatest partner questions, build it in

19

Defining Your Partner Program


Pre
-
Qualified Leads


Always include it in your program (one of top things
they are looking for). Even if you only send 1 lead/yr!


If you don’t have leads

then fix it (promotions,
website, referral process). Plus

SaaS sells a lot direct


Internal sales doesn’t call out of a phone book, why
should external 100% commissioned sales people (paid
for by someone else) use one?


Need a lead policy


Ensure leads are followed
-
up on in a timely manner


See
www.chanimal.com/vars/portal

for sample lead policy

20

Defining Your Partner Program


Deal Registration


A reseller registers their deals with you (company,
contact, deal size, etc.)


Their concerns (you will steal the deal)


Their benefits


Get exclusive pricing (better margin) advantage over
competitors


Assistance from your sales to help close the deal


Preferred pre
-
sales support to help win the business


Promise that you will not call on the registered opportunities
direct, and will credit them if their accounts order direct

21

Defining Your Partner Program


Deal Registration


Your Benefits


You will know what is coming down the pipeline for sales
forecasting


You can elect to work with them to win the largest bids


You don’t have as much
channel conflict
(when two sales
people (resellers or vendor) compete for same business)


Increases margins for all


since you “selectively” reduce the
chance of competition from your own partners


Policy details


See chanimal.com/vars/portal for sample

22

Defining Your Partner Program


Front end discounts


Often part of deal registration


Back end discounts


Rebates, promotions


Bid desk


Important if you have enterprise applications that
integrate with other systems


The bids may get too complex for dealers initially, but
they will learn


Not important for non
-
complex applications

23

Defining Your Partner Program


Reseller Locator


Some contacts want to ensure local support and will look
for local resellers to order from


Having them e
-
mail or call eliminates benefit of 24/7
self
-
serve


Start with a graphical map of partners


Move toward a zip
-
code look up as you get more
partners


Partners like to see their name on your website


Guard with a “re
-
direct” script if worried about
competitor’s recruiting your partners (I would)


24

Defining Your Partner Program


NFR (Evals n/a


applies to hardware)


Discounted “Not for Resale” copies
--
”access with SaaS”


Resellers are NOT your end users


Know what they use, sell what they know, so get them to use your
software


Should be treated just like your existing sales people


Do you charge your existing sales people to use and get to know your
software?


Can be free and used as BAIT to recruit resellers

especially if they
can benefit from your software


Always have a value attached (then promote
FREE

for recruiting)


What we obtain too cheaply, we esteem too lightly


Additional copies/access often discounted (COG)


$5
-

$10. 70% of resellers used. $31% used.



25

Defining Your Partner Program


Joint Reseller Promotions


MDF (Market Development Funds)


Must have a policy (see chanimal.com/vars/portal)


Used for regional promotions usually proposed by partners


Trade show in their region


Joint mailing


Other items they may propose


You can pick and choose which you will participate in


Co
-
Op (co
-
operative funds)


Usually accrued as a percentage of sales


Not preferred, since often have less control of usage



26

Defining Your Partner Program


Requirements


Register


Ensure you get enough information to “profile” them later


Size, vertical markets, # sales people, certifications, etc.


One of my companies is paying over $38k just to “re
-
profile” all
their partners since they captured little on the application


Will use this information to map the characteristics of the most
successful to recruit more just like them


Helps to know their vertical coverage


Qualify as a VAR (only if want a barrier)


Purchase from an authorized Distributor


Trick question. Designed to stop end
-
users and competitors from
trying to find out more. Has phone # to bypass



27

Defining Your Partner Program


Requirements


Required Business Plan


Actually, it is a plan of action. One promotion per month for 1
st

3 months to ensure proactive activity


Reseller Agreement


Chanimal.com has a lot of samples


Covers independent status, right to use logo, termination clause


Sales Quotas


For gold or platinum levels


Determine within 3
-
6 months


Need to first know what is “possible” for resellers or may set it
too low or too high


Setup a ramp up period to achieve



28

Defining Your Partner Program


Reseller Experience


How easy are you to do
business with?


Pre
-
Sign up phone number


Salesforce.com


a PAIN


Linksys


record 7 calls


Grid of program details


Ease of registration


Timely response for approval


Automated e
-
mail response


Perceived lead
-
gen capability



29

Defining Your Partner Program


Reseller Sign
-
Up Page


“Basic” hello (won’t read)


Program feature bullets


NO product hype

already
convinced if they got here


Link to grid of program


Link to application


Channel Mgr contact info


Provide the information that
they need to make a decision


Confused = No sign up



30

Defining Your Partner Program


SaaS Specific Issues


Channel used


Recommender program (45.4%)


Affiliate program (similar
-

terminology) (29.8%)


Aggregator (similar to a distributor)


combines SaaS apps (34%)


OEM


may or may not be private labeled (29%)


Uses a wholesale distributor (Ingram, Tech Data, etc.) (9.7%)


Have resellers (41% have, 11.4% expect to


52% )



48% of SaaS surveyed got 20+ % revenues via channel


80+ % of revenue via channel from many non
-
SaaS


Why?



* Percentages are from SoftLetter Report

31

Defining Your Partner Program


SaaS Specific Issues


Reseller margins (% paid)


60% pay 1
-
15% margin


19% pay 16
-
30% margin


21% pay more than 40% margin



The margin for desktop/enterprise is typically 20
-
50%


Note: Even though they get a higher % discount off MSRP, they
often discount their bids


“Street price” is discounted

at their expense, not the vendors, so
the margin they get is actually less (depending on how aggressive
they bid)… helps you to “sell” a lower margin



* Percentages are from SoftLetter Report

32

Defining Your Partner Program


SaaS Specific Issues


Even with lower “guaranteed” margins…


VAR, Integrators and Consultants still expect to make a
majority

of
their revenues via professional services (better be some)


Training, configuration, integration with backend systems


Don’t assume they aren’t as technical as your team (mistake)


Often MUCH more technical and can integrate better & on
-
site


Concerns of resellers with SaaS


Who “owns” the account?


SaaS vendor owns account activity (need to make it transparent to partner)


VAR should still make revenue off training, integration, support


Need to have some feeling of ownership, or won’t support their sale


How do they get paid?



* Percentages are from SoftLetter Report

33

Defining Your Partner Program


SaaS Specific Issues


How are resellers paid?


Issue


same internal and external (should be alignment)


Question:


If a sales person needs an extra $1,000 to make a house payment
and he has the option to sell a $10,000 desktop application ($1,000
commission) versus a $12,000 SaaS application ($100 per month)


Which is he going to push?


* Percentages are from SoftLetter Report

34

Defining Your Partner Program


SaaS Specific Issues


How are resellers paid?


That’s
a fundamental problem
with selling SaaS

it is like the car
insurance industry and takes awhile to build residual income


So… the transition to adding SaaS products to the resellers line card
usually occurs alongside traditional sales (or sales “may” starve)


The sales person (where the rubber meets…) can’t cash flow the
company


via the SaaS product


So… the SaaS product often get’s undersold


However, an advantage of SaaS is that the sales and implementation
cycle (with associated pro services) should be shorter (because of the
lower initial payment), so it is a HEDGE product and brings
in quicker
and more stable income

so it should be part of their mix
(period

makes good business sense)



35

Defining Your Partner Program


SaaS Specific Issues


How are resellers paid?


An advantage of SaaS


The sales and implementation cycle (with associated pro services)
should be shorter (because of the lower initial payment price, plus
much of it is pre
-
configured remotely)


Reseller’s may not know the advantages


it has not been their
model


Part of
your

challenge and messaging is to educate them


Most of my SaaS companies contribute to the overall SaaS
market development


have presentation slides that show the
advantage of SaaS along with product specific slides



36

Defining Your Partner Program


SaaS Specific Issues


How are resellers paid?


Since selling SaaS via the channel is a similar problem to selling
SaaS internally, let’s look at the approaches


Rule: Align your commission with your sales objectives


Current “inside sales” practices (SoftLetter SaaS report):



Payout Schedule

1
-
5 Million

5
-
10 million

10
-
100 million

100% Up Front

28%

36%

50%

Pro
-
rated over Life

21%

27%

11%

Part Up Front, Rest Pro
-
Rated

28%

18%

17%

* Won’t equal 100% (balance is a combination)

37

Defining Your Partner Program


SaaS Specific Issues






Appears the more revenue, the quicker the sales people get paid (cash flow?)
(Salesforce is an exception

but we can’t always follow them (unless we create
similar brand preference))


We want sales people to sell it


so we have to compete with desktop (align
commission with desired behavior)


Also want them to have advantages of residual, and service the accounts residually
(more integration, keep accounts satisfied, sign up more users)


or they won’t want
to talk to or help manage the accounts (like a car insurance agent)


Payout Schedule

1
-
5 Million

5
-
10 million

10
-
100 million

100% Up Front

28%

36%

50%

Pro
-
rated over Life

21%

27%

11%

Part Up Front, Rest Pro
-
Rated

28%

18%

17%

38

Defining Your Partner Program


SaaS Specific Issues


Creative options? Recommendations?


Dependant on YOUR financing and cash flow


Dependant on your residual cancelation rate


Depends on how long existing resellers have been selling SaaS products (can
they cash flow the delayed pay)



39

SalesForce.com


Largest SaaS company (over $1 billion). Interviewed
Steve Lucas, SVP of Force.com & Alliances


Two programs


Referral


Consultant


How many?


6,200 global (3,500 US) referral partner companies


550 consulting partner companies (these are typically
VARs and System Integrators). Do integration services
and training


Thousands of independent consultants



40

SalesForce.com


Comparisons


Salesforce.com has 6,200 referral, 550 VARs/SI’s (1
billion company)


Intuit has 36,000 referral partners ($100 million revenue
(out of $1 billion company)


Microsoft claims over 20,000 resellers


Referral is their Affiliate program (tried to
differentiate

not much difference)


How much do they pay?


Consultants


most are also referrers



41

SalesForce.com


How
much

do they pay?


Pay referrals 10%


Justified it as, “Guaranteed” margin. Any discounting
would come from the company’s portion (but would only
make 10% of sales price)


How

do they pay?


Based on whatever revenue comes in over the FIRST year
only. Said they were always looking to change that.


Complex: Month to month, year to year, multiple year (challenge)


Didn’t ask payment method (check, direct deposit, PayPal,
etc.)



42

SalesForce.com


How

do they pay? (cont…)


Didn’t ask about who closes for second year


Referrers have to REGISTER a referred deal within their
partner portal to get credit


Didn’t ask if they also track
links

via cookies, etc.


When

do they pay?


45 days after the end of the QUARTER


Could be as long as 4 ½ months later for deals referred at the
beginning of a quarter


Pay on whatever is paid to them within that time frame




43

SalesForce.com


How much do they pay inside sales?


Wouldn’t say



How often do they pay inside sales?


Wouldn’t say exactly, but said that it is aligned very closely
to how, when and over the same time frame as the channel


They “double pay” (but don’t consider the lead sold)


Pay the affiliate (referrer) for the LEAD. Some come hot,
some come colder

only pay for closed deals. Dependant
on Salesforce to close (even if you could do a better job)


Pay inside sales per SALE (closing the lead)



44

Assessment


I see a LOT of mistakes


Larger companies can make these mistakes (i.e., Microsoft packaging,
ads, etc.)

but you can’t afford to


They already have momentum and brand preference

you may not


Leaving themselves open to a more competitive partner program


I have taken down similar players that had better products, by recruiting away their
resellers with a better program (make more money

go figure!)


Standard “affiliate” fee is 10
-
15% so that is not too far off (for an
affiliate)


Don’t reward partners that could
close the deal the
mselves (and make
the inside sales commission

wouldn’t cost them more). Paying for
just a referral

neglecting some good closers (some that have great
existing relationships in corporate accounts)


45

Assessment


I see a LOT of mistakes


Paying up to 4 ½ months later

that is SIMPLE, but it is also not the
way to motivate the channel (sales)


Doggy does trick, doggy gets bone (4 ½ months later?). You’re kidding!!


Most affiliate programs pay every 30 days on whatever has
come through by that time


The closer the pay is to the results

the more motivated the
sales rep is to produce more sales


One of my companies said, “My sales reps are not motivated by the
commission.” They paid almost exactly the same way (4 weeks
after the quarter (not 6). We switched it to payment 2 weeks after
the check arrived

and they were HIGHLY motivated!!


46

Assessment


I see a LOT of mistakes


They only pay over the FIRST year


Simple, easy to understand, but…


Does not encourage ANY localized “service” the first year (i.e.,
don’t call me with how slow your system is

call them (I don’t get
paid for anything past the first year so I can’t support you)


Does not encourage mult
-
year deals (pay for behavior)


Does not follow the insurance industry residual sale model to
encourage partners to stay with you for years (so they don’t loose
future revenues)


Unless more is paid up front (not in their model), then partners
have deferred pay by “selling” SaaS

with the hopes of making
more over the long haul. Partners are not aligned with the
companies model

interesting to see the results


47

Assessment


Overall


Said they looked at a lot of other partner programs but
wanted to be innovative and simple


Innovation for its own sake is not always the best model


I’ve seen “simple” sales comp plans, and the sales team
(channel) has to understand it

but some simple options
can make it MUCH, MUCH more motivating
--
which
equals more sales


48

Update


New VAR Program


Very basic, needs refinement


Pros


Residual revenues on new accounts, plus existing “if” they setup new
accounts


Residual for ongoing renewals


Reseller portal (sales and marketing tools)


Cons


Auto approval


competitor’s can step right in, need to qualify


No levels (no minimums)


no loyalty, no segmentation (who do you
give leads to)


Not capturing enough profile info during registration


Requires certification ($5k barrier to entry)


49

Phase Two: Recruiting


Process


Profile reseller type


By vertical market, geographical region (US and International), by
technical capability, plus more (takes about15 to compile)


Obtain list (strategy)


Competition is my 1
st

Source


Competitive counterstrike. Pulled
over 800 off one competitor’s website (recruited over 150 of them
in 6 weeks)


Alliances. Similar customers, non
-
competing vendor. Know
exactly which of there are best and can help you recruit them.
Formal alliance will give you list

otherwise hit their website


Specialized list. CMP, SoftDatabase, The VAR City.

50

Phase Two: Recruiting


Process


Obtain list (cont…)


List brokers by SIC code (but want e
-
mails to start)


Create prospecting and management database


Salesforce.com (seem to have mixed reviews), Goldmine, Act!, Interspire


Start contacting to recruit


3 part initial e
-
mail campaign (I have samples at Chanimal.com)


Incentive is often an NFR copy/access (if your software can help them)


Phone calls


National road shows (with alliances (recruited 800 in 6 weeks)


CRN reviews, Ads, direct postcards, etc.


Hire rep firms


Last campaign


recruited 792 resellers in 8 weeks


51

Phase 3
-

Enablement


On
-
boarding


Training


Materials (sales scripts, presentations, templates)


Product


Support


Sales


Marketing


promotions


Systems


Need leads, approaches, prospecting tools


Motivating

52

Reseller Channel


A 100% commission, indirect sales force


They take all the risk


They cover their own expenses


Often provide their own leads


Can sell multiple competitor’s products


Must build loyalty to increase “reseller recommendation”


So… should you treat them
worse

or
bette
r than an
inside sales employee?

53

Reseller Channel


Don’t complicate it


channel management “is” sales management


The same rules apply for managing a channel as for managing a sales force.
For example:


Would you hire a new sales person and then…


Not train them on your product


Not provide any presentation material, sales scripts, demo script, phone
dialogs, or have no model calls, no coaching calls


Not provide leads, no systems


Have no contest, provide no motivation


Have no contact (for weeks/months at a time)


No. So how come you treat your “outside” sales force with so much
neglect?

54

How Come?


I hear it time and time again, a vendor signs up hundreds of
resellers and then says, “My channel isn’t selling anything.”


Yet your internal sales team is selling. Why?


You are
not doing anything
with your outside channel sales
team. They are 100% commission and take all the risk, so you
neglect them.


If you paid them all salary and commission

you would not
neglect them at all.


Do the same thing as you do with your internal sales team,
and you will get similar success. Sounds obvious, but…

55

Phase 3
-

Enablement


On
-
boarding







1.
Approval e
-
mail (then CALL quickly


would you e
-
mail a new sales rep, or talk to
them?)

2.
Portal Orientation

3.
Product Overview (sales presentation (model call), not product training)

4.
Explain 90 day promotions (tied to Plan of Action)

5.
Follow
-
up



(Sample Chanimal On
-
boarding Checklist)

56

Phase 3
-

Enablement


Training


Same as you would do with inside sales
and

inside support


Product
. Detailed product training (videos, internet,
webinar). Start of certification.


Support
. Known problems and issues and resolution. Part
of certification.


Sales
. Sales scripts, sample presentations, public webinars,
sales training (prospecting, presentation skills, overcoming
objections, closing)


Marketing.

Regional promotions that work, SEO with your
product, joint promotions.

57

Phase 3
-

Enablement


Motivating


Contest (weekly, monthly, quarterly, annual)


Recognition (monthly newsletter)


Do ALL the same things with your channel as you do with
your own sales team

and you get similar results. Seems
obvious

but companies get lazy, don’t assign resources, and
are negligent… yet somehow think it is fine to just hang them
out to dry once they bring them on board.


Then they tell me that the channel doesn’t work for them

when they don’t work to help their channel.


“This” is
Channel

Management


not channel neglect.

58

Channel Management


Do ALL the same things with your channel as you do with your own sales
team

and you get similar results. Seems obvious

but companies get
lazy, don’t assign resources, and are negligent… yet somehow think it is
fine to just hang them out to dry once they bring them on board.


Then they tell me that the channel doesn’t work for them

when it is the
opposite
--
they don’t work to help their channel.


“This” is
Channel

Management


not channel neglect.


It is the same thing as “good” sales management (which is NOT passive)

just with an external 100% commission sales force.


I ran a 350 person 100% commission sales force. Many were my friends. I
didn’t dare let them fail

they were taking a risk and trusting me

not to
let them fail.


We need to do likewise with reseller partners that trust us, to help them
succeed.

59

Summary: Three Phases

1.
Definition Stage


Determining the elements of your reseller partner program

2.
Recruiting


Finding enough of the right kind of resellers

3.
Enablement


Ensuring they have everything they need to sell & support


Training (product, market, competition, resources, certification)


Sales tools (presentations, demo scripts, e
-
mail templates, etc.)


Systems (content/lead portal, forum, deal registration)


Leads, model calls, coaching calls


Motivation (contest, recognition, news)



60

Free Resource


Chanimal.com


The Ultimate Resource for Software
Marketing


Over 500 pages of software marketing and channel content


Over 15,000 unique software and channel visitors / month


Has templates, examples of most everything


all FREE!


Plus, if you are not signed up yet

stay a day and sign up for the Channel
workshop. This presentation is a small FRACTION of what you’ll learn in
the most comprehensive channel workshop ever
condensed into a single
day. Learn in a day what took over a decade to learn from building
channels for over 270 high
-
tech companies.


Leverage the channel and increase sales!

61

62

Ted Finch

President, Chanimal Marketing

www.chanimal.com


Thank You…

Building a SaaS Channel:

A Step
-
by
-
Step Approach