Have you ever noticed that virtually all management problems start with bad recruitment? Wrong hires are usually the single highest hidden cost in any business … and nowhere is that truer than in the world of channel sales.
What is channel sales? It’s selling that takes place by means of any third party. Sales completed through value added resellers, partners, systems integrators, independent reps/agents, licensed distributors, and franchisees are all examples of channel sales.
Below are seven ways channel managers can recruit more effectively.
- Understand the channel manager’s job description. Great channel sales managers need to be both excellent salespeople (because they’re always prospecting for customers and potential, high quality partners) and inspirational managers. They need to be tough but fair, unafraid of confronting problems and willing to enter into constructive conflict. They need to be strategic thinkers and shrewd problem solvers. They need to be planners and engagers – deploying both vision and strong interpersonal skills. They need to have high levels of empathy. They need to be able to carry themselves with confidence at every level in their own organisation, in their partners’ organisations, and with prospects, from users to the C-suite. They need to be able to establish clear boundaries and say “no” when that’s appropriate, in order to ensure that the vendor and the partner are investing their time effectively on high value activities which carry a high probability of success. Last but not least, they must insist on partners putting their best salespeople on their products. That’s another way of saying great channel managers won’t tolerate salespeople who allow scarce technical and support resources to be swallowed up with unqualified demos for non-prospects, or who stuff the pipeline with non-opportunities that confuse busy activity with meaningful action. Bottom line: Great channel managers don’t tolerate non-performance.
- Design the ideal partner. This means knowing exactly what a great partner salesperson looks like ahead of time … by focusing on leading indicators (like “new conversations initiated”) not lagging indicators (like “closed deals”). Rather than taking on a partner who is only willing to dedicate a weak or average salesperson, work closely with a partner whose management will allow you to identify the top performers. Then, in return for getting their best people, offer to train, coach, and mentor the salespeople as if they were on your payroll.
- Take your time. Great channel managers know that, contrary to popular belief, it’s better to have no breath than bad breath in a sales territory. Invest the time necessary to recruit the right partners: the ones who are willing to give access to their Executive Team, the ones who will encourage upward escalation if there is a problem, the ones who will clear the path for their top salespeople so the partnership doesn’t suffer, the salespeople can thrive, and customers can get what they need. Focus on recruiting the very best performers. It’s better to have a handful of top-producing partners than dozens or hundreds of “partners” who produce nothing or next to nothing, cost thousands to recruit and train, and tie up scarce and costly resources.
- Understand the art of up-front mutual agreement. By agreeing up front what will happen at the end, you can eliminate surprises with your channel partners. You will either be advancing or generating an early out. (By the way, this is exactly the approach the salespeople should be taking with prospects.)
- Let potential channel partners know that you are committed to rewarding the right behaviours. During the early stages of the discussion, make it clear that you will allocate marketing development funds to those who are doing the right behaviours and producing the best results. Set the expectations early on: Those who execute consistently on a daily behavioural plan that supports the revenue target will not only get additional marketing development funds … but will also get more vendor-generated leads.
- Resolve conflicts about territory before they happen. Before you finalise an agreement with a partner, agree up front on crystal-clear territory borders that everyone can understand: either by geographical region, vertical, or size of client. Make sure you’ve mapped out, in writing, exactly what the process for dispute resolution is going to be if you should happen you fall into conflict with one another … and then follow that process to the letter.
- Celebrate what’s working … and talk openly about what isn’t. Weak channel managers typically go from one failure to another without learning anything. Great channel managers, by contrast, capture and share lessons of failure regularly. They’re willing to admit and own up to their mistakes. This attitude makes it far more likely that you will sustain a good relationship with your current partner – and receive qualified referrals for new partnership relationships.