Channel Tips

The Road to Revenue Readiness: 4 Keys to a Successful Launch
 

By Greg Nutter

You've signed up a new reseller, delivered the training presentation, and now wait anxiously for the first order to arrive. Months go by and still no orders - what went wrong? The partner looked like the right fit, they were given a good margin, and market demand for your solution seems to be strong. Maybe they weren't as capable as you thought - or more likely, maybe they weren't given all that they needed to be successful.

Companies know that when hiring a direct rep it will take at least 3 to 6 months of daily learning before they start generating revenue. However, when the same company contracts with a reseller, they often expect the partner to begin signing deals after little more than a 1 hour PowerPoint presentation! 

So what's a successful launch? It's the process of transferring ALL the knowledge and expertise necessary to sell, deliver, and support your solution. If done properly, the reseller will progressively become more successful. If done poorly, revenue won't flow and you'll incur all kinds of extra costs, either through doing things the partner was supposed to do or by fixing problems because things weren't done properly. Either way, a poor or incomplete launch program will rarely deliver the revenue growth and reduced costs that you had expected. 

A successful launch program has four key components:

1. Gap Analysis

When recruiting partners you should be using a Partner Profile to tell you what kind of partner to recruit and what kind of partner not to recruit. Very rarely will you find a partner that is a 100% fit - if you often do, perhaps your Profile is too loosely defined. If the partner has most of the qualifications, you may want to sign them up anyway provided you identify the gaps and gain agreement on an action plan to fill them. These gaps are often skill related which can be resolved either through supplemental training or hiring new staff.

2. Knowledge Transfer

There are seven functional areas requiring knowledge transfer: sales, pre-sales technical, marketing, implementation, support, administration, and management. While most vendors do an adequate job at product related training, what suffers the most is often sales training: who will they call on, what business problems will they look for, who will be involved in the purchasing decision, and how will they differentiate from alternative solutions at a business level. Many savvy suppliers are now realizing that this kind of training provides the greatest impact on channel success over almost any other kind of program.

Also, since the channel has only so much time to allocate to training, you'll have more luck transferring the knowledge in a phased approach. Start with just enough so that they can engage a customer without fear of failure and roll-out more training as they proceed through the sales cycle.

3. Supporting Tools

Just because you've provided the reseller partner with information doesn't mean that they understand it, remember it, and know how and where to use it. To help them on this journey, you'll need to develop tools that support them through every stage in the solution delivery process. Channel reps often decide whether they'll promote your products based on the quality and completeness of your programs and tools. If you're marketing team is not as experienced on how partner requirements differ from direct sales, getting expert guidance can be a critical factor in making your product the reseller's "lead offering".

4. Kick-Start Programs

The most successful partner initiatives have programs that prime the pump. Providing partners with leads or other customer engagement opportunities are highly effective at getting the ball rolling. Spiffs, contests, or other purely monetary based programs might seem like the best way to get reps pitching your product but putting them in front of a live customer will get you far more success.

Beyond these components it's important to remember that someone needs to be assigned as the launch owner to ensure all elements are executed. Treating partner launches as a part-time, ad-hoc activity is a recipe for failure.

Warren Buffett once said "You only find out who is swimming naked when the tide goes out". In a hot market with little competition, a company can do quite well with a mediocre launch program. However, there almost always comes a day of reckoning and that's where a solid program can be your best friend.

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Greg Nutter is a Principal with Soloquent Inc. (http://www.soloquent.com/) where he helps technology companies develop go-to-market strategies, programs, and tools that increase indirect and direct sales performance. He has over 25 years experience in sales, sales management, and channel development in the HVTO industry.

Got a comment, got a question, got a problem? Send Greg a note at greg@soloquent.com