Many different industries frequently use the terms “channel partner” and “resellers.” But what do they really mean?
As implied by the name, resellers buy goods and services from the manufacturing companies and resell them to customers. Naturally, this process is carried out for financial gain.
Who is a Reseller?
A reseller serves as a middleman between a company and potential clients. They use a standard selling strategy by branding the purchased goods as their own. They use this strategy because it avoids having to identify the parent company to the customers. Growth in sales and profits for vendors and resellers is a significant benefit of a reseller relationship.
Who is a Channel Partner?
Channel partners and the parent company have a more excellent bilateral relationship than resellers do. And a partner program is the only way to outline the advantages and requirements of this partnership. As a result, the parent company will put more money into its partners and depend more on their success.
On the other hand, parent companies and channel partners can increase the scope of their services. The ability to serve as a one-stop shop will help them, which strongly encourages long-term commitments. Shared marketing materials, regular communication, ongoing engagement with the good or service, and much more are all part of this exquisite partnership.
Types of Channel Partners
For all parent vendors, channel partners serve as an indirect sales force. This indicates that they effectively assist other vendors in selling their goods and services. The channel partners are still thought of as separate businesses. Consequently, they are skilled at marketing goods and services created by themselves and other suppliers.
Here are a few types of channel partners:
Systems Integrator (SI)
A systems integrator is a person who buys separate hardware and software components from various vendors. To meet their clients’ business requirements, they are then integrated into a single, customized solution.
Original Equipment Manufacturer (OEM)
Manufacturers of original equipment previously built goods for customization, rebranding, and resale. It has effectively evolved over time. OEMs are designed to buy goods and services that they can later resell under their own brands. They can then sell them again, exactly as they were made.
Value Added Reseller (VAR)
Value-added resellers typically buy technology products and upgrade the original model with new features. They then resell the packaged offering to their clients. For instance, they might invest in specific hardware and incorporate a ready-to-sell software program. Additionally, they have the option to add value by providing the product with training, tech support, or installation.
A distributor functions as an intermediary between two independent businesses, much like a reseller. The first is a channel partner, whereas the second is a provider/manufacturer of a good or service. For instance, a parent vendor may decide to use a distributor to sell their products in order to save time on marketing. But once more, this is due to the distributors’ already-existing established distribution network.
Typically, they are intended to offer project management, independent IT guidance, and network design services. They also efficiently provide management and assistance to all businesses. Similar services are offered by managed service providers and IT consultants. They do not, however, provide management and ongoing monitoring of the network infrastructure for their clients.
Managed Service Provider (MSP)
An MSP is typically used to oversee, manage, and maintain a company’s IT infrastructure. The company’s network may or may not be remotely monitored to make sure that all employees can access it. Additionally, it offers data security and storage, end-user device management, product installation, upgrades, etc.
Benefits of Channel Partnership?
Various partner programs focus on providing partners and vendors with a variety of benefits. The following are the benefits that a channel partnership can offer.
Uses the Most Recent Technology
The biggest feature regarding channel partnerships is how effectively they sell the newest technological goods and services to their customers.
Provides a Full Range of Products and Services
Channel partners are renowned for providing a wide range of services and goods from different vendors. They offer customers a wide range of products. This significantly satisfies the customers’ unique technological and commercial needs.
Many vendors continue to market their goods and services independently. The channel partners follow up on the leads they receive after being passed along to them.
Uses Additional Resources and Knowledge to the Fullest
The financial assets of a vendor are available to all channel partners. Additionally, it includes training on products and markets, technical assistance, marketing support, co-op funds, campaign templates, etc.
Increased margins are a significant benefit of channel partnerships. Nevertheless, it depends on how many units of the product are sold, on potential revenue streams, and on additional discounts.
What Methods are Used to Develop a Sales Channel Program?
- You must first create helpful content to entice partners if you want to develop a successful sales channel program.
- Then, you must concentrate on the needs of your partner and select the structure that will work best for your channel sales partnership.
- The next step is to encourage your partners to close deals while keeping the lines of communication open.
- Finally, you can effectively use the platform for sales channel partnerships and present various reward schemes.
Choose EmpireOne Global Solutions as Your Channel Partner
At EmpireOne Global Solutions, we take the time to get to know our customers so that we can meet their needs. We make sure that the technology proposed by our clients is fully embraced by our experts and perfectly aligned with it. We also make sure they utilize technology to the fullest extent possible in order to scale and grow their business.
We understand how crucial infrastructure development and IT management are to you as your one-stop channel partner. Therefore, we are pleased to work together with our clients to advance them toward success and growth. Our experts offer first-rate services to promote increased business performance and the top business scaling solutions. Get in touch with us today!