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GO
-TO
-M
AR
KE
T
GUIDE TO
CHANNEL
SALES &
MARKETING
Tips & tricks to building
powerful partnerships
The Complete Guide to Channel Sales & Marketing
Success is never a solitary achievement, particularly in the software industry. From design
and development to deployment and distribution, software companies tap into a wide
spectrum of skill sets and networks in order to bring their visions to life by putting their
products into the hands of end users.
Traditional software companies use many different channel marketing tactics to expand their reach and reduce acquisition
costs. They create market leverage through sales-focused channels like affiliates and dedicated resellers as well as technical
channel partners like system integrators. But, for two reasons, these kinds of partnerships are not usually a good fit for today's
business-to-business SaaS software company:
They are typically easy to find (online accessibility), deploy (no installation or
integration required), and use.
By their nature, SaaS products aren't front-loaded to deliver quick financial
gain. With a SaaS product, resellers have to either settle for a fraction of the
revenue they would receive from a perpetual license vendor, or get a cut of
subsequent annual SaaS subscription fees. The first option is not appealing to
the channel partner, and the second isn't smart business for the SaaS vendor.
SaaS solutions don't generally
require an intermediary.
The SaaS licensing model isn't
designed to deliver substantial
up-front revenue to the
channel partner.
The Complete Guide to Channel Sales & Marketing
The service provider, or VAR, derives the lion's share of their revenue not from a sales
commission, but from the related services they bill directly to the customer.
While still technically a channel strategy, this kind of partnership requires an entirely
different mindset and tactical approach. It is a long-term play, not a quick fix. Success
requires a fair amount of due diligence as well as a healthy serving of startup a