Many companies in the B2B sector decide to sell their products via indirect sales, i.e. via a partner channel. After all, this sales strategy offers a number of advantages:
- The company's own sales team remains relatively small and can concentrate on supporting partners.
- Through the partner network, you can expand your sales force with a competent sales team: an excellent tool for scaling your own sales.
- Working with a sales partner gives you access to many potential new customers - even beyond your own national borders. This internationalizes your own sales.
Ideal sales partners create added value
These partners should ideally not just be distributors or resellers, but should provide added value to the customer. This can be, for example
- the installation of software,
- a customized configuration of machines, hardware or software,
- an individual consultation,
- local after-sales support or
- the offer of additional services
that increase the attractiveness of your own product. But how should companies go about building a resilient network of value-added resellers?
The first and certainly most important step is to clearly define your target group. Only then is it possible to identify suitable and therefore potential sales partners. Once these have been identified, the next step is to win them over for a collaboration. Finally, it is important to consolidate and develop the relationship with the partners from the outset as part of professional partner management.
In detail, I would implement this as follows:
1. Define the target market and target group.
The selection of the right partners for the reseller network is primarily dependent on the target market and target group of the product. Even if most products can be sold almost anywhere: In the first step, it definitely makes the most sense to focus on the countries with the lowest barriers to entry.
Therefore, you should first decide in which countries and regions you want to start selling the product - and thus also building up the partner network. This decision can then be further concretized by determining the target group, company size and industry. In this context, you often hear the phrase: "Anyone can use our product."
But clear positioning is also important here, indeed indispensable. You can use the current distribution of the current customer base as a guide: this is always a good indicator of which target group is likely to be ideal.
2. Define the ideal sales partner.
The second step in building a partner network is to identify the distributors and resellers that are likely to be worth working with. Three criteria in particular play a special role here. An ideal distribution partner fulfills them all:
- Do their customers and/or product portfolio match our target group and our product?
- Does the partner offer the added value we need for our product?
- Can we also offer the partner something?
Depending on how strictly you apply these criteria, you will pursue a different strategy when setting up the reseller network. If you are strict, you are more likely to focus on the quality of the partners, while a more liberal application allows for a larger network.
Target group and portfolio
One of the first questions to ask when evaluating potential sales partners is: Does the potential partner already have many customers that match my target group? For example, if your company produces monitoring software for the IT infrastructure of medium-sized companies, you may be looking for a reseller that has already established itself as a sales partner for manufacturers of cyber security solutions for medium-sized companies.
The product portfolio of a potential partner also plays a role here: Do their products match our product? To stay with the example: Those cyber security solutions would complement the monitoring software very well - an indicator that a collaboration could be worthwhile.
Added value of the partner
Another criterion for identifying suitable sales partners is the added value that a partner could offer your customers. After all, it is this added value that increases the attractiveness of the product - and therefore the reason for pursuing an indirect sales strategy.
What this added value consists of depends on the product in question. For example, if the product requires a high degree of customization, a partner who has the technical expertise and the necessary resources to implement these customizations would be suitable.
What we offer the partner
What you have to offer a partner - apart from a few percentage points reseller discount - is not insignificant when selecting potential sales partners. There are many possibilities. For example,
- you can work together in a co-marketing program, promote your partners on your website and lead generation,
- joint organize events such as trade fair appearances or dedicated customer events,
- which support partner organizations with training and certifications,
- offer the opportunity to sell additional consulting and services to the customer,
- offer exclusive sales only via the partners, which avoids channel conflicts.
There are no limits here.
3. Acquire sales partners.
You can approach the acquisition of partners in various ways.
Established manufacturers can choose interested parties
If a company already has a certain level of awareness due to a very attractive product, it is quite possible that many potential partners will proactively seek contact. You can also support this with targeted online activities and thus select the right candidates in advance before entering into further discussions.
New market players go into cold calling
For companies that are new to the market, however, it often means going into cold calling. If the sales resources are available internally, you can take this into your own hands. However, it often makes sense to bring an external service provider on board to contact a large number of resellers who have the ideal profile. If they are interested, your sales team can then conduct further discussions.
4. Build up and develop sales partners.
Even if you have found the right sales partners and your network is growing, selling via partners is by no means a sure-fire success. Most resellers first sell the products and solutions that they feel competent and confident about. And that is their existing product portfolio. This means that you need to invest a lot of time in training and supporting your new partners, both from a sales and technical perspective, especially at the beginning.
In addition, it is important to agree on a sales target and plan joint marketing. The rights and obligations of both sides should be clearly defined in a partner contract and a partner program.
5. Operate professional partner management.
The ongoing support of partners is essential. A value-added reseller always has a whole range of products and solutions on offer. They will focus primarily on the solutions that sell best and most easily. A reseller usually does the best business with the manufacturers who are constantly in his mind - and not just part of his price list.
The partner wants to be kept up to date: He expects you to proactively support him. And they need to feel that you as a manufacturer are looking after them. This support can take many forms. The possibilities range from regular updates on the product and strategy to special sales campaigns and feedback sessions with your own product team.
The important thing is to stay in touch.
Conclusion: More power for B2B sales
A strategically established and well-managed partner network can be the right way for many companies
- to increase the attractiveness of their own product,
- to scale sales efficiently and
- to set up internationally more quickly.
When selecting resellers,
- what added value the reseller can offer,
- which target market and which target group the partner serves,
- what you can - and want to - offer your partner,
- how to build up, develop and retain your partners in the long term.
Contact me! Let's work together to develop and successfully implement a concept and program for your partner network.
