Types of channel partnership.

bundle them together to create a Since the existing distribution does

new product as a complete package. don't service if there is no channel
Channel partnership invites shape,
conflict to be worried about. If you
size acronyms. Agency partners.
currently sell through a distribution
Indirect sales. In an agency partnership, the agency company, it is now time to try selling
has exclusive rights to offer the direct to the end user and vice
Where a third party bears the cost versa.
vendor's product as its own product
and does the work of customers
or service offering.
acquisition, (and frequently If the Internet looks tempting, why
professional services and customers An agency partner is powerful not give it a try?
success or support too.) Can be the partner, typically an agency who
Reason 2: Distribution is losing
holy grace of SaaS because it allows either send you leads or close
business to competing channels.
you to “sell where you're sleeping” business on your behalf. They may
to grow revenue. Disproportionate also run each client's program on  It's a fact some types of
the expenses to an even greater your software and charge them for retailers can just keep up
extent than usual said by Cohn. service. Agency partnership can with the modern day
increase marketing reach and earn competition.
In an indirect sales channel, your
additional referral revenue.  If you sell your products
partner sits between you and the
through these smaller
customer, brokering the sale for They can help you reach a new
distributors, you are
you. potential clients and add more value
probably experiencing flat
for current clients. They may also
Direct Sales sales while they might
collect payments and maintain
represent a solid foundation
Are when you, the vendor sells the customer relationship on your
because their loyalty. In
products or service directly to your behalf.
order to grow sales, you
end customer.
Agency partners work within the have to complement this
Resellers. same industry, between companies channel with more dynamic
with aligned values and goals, and ones.
reseller sells a vendor’s product with they can provide significant
a few modifications or Reason 3: Existing distribution
improvement for return of
customization to a specific market. does not provide enough
investment for business that utilizes
margin.
Value added resellers. them.
So if you find that the existing
Sell third party software, hardware Affiliate programs.
distribution channel does not
and applications directly to end In an affiliate partner program, provide enough return of
users at a markup. The value added Partners refer to customers, to investment, then it is time to
piece comes from the partners vendors and earn referral fees. explore more profitable
bundling vendors product with channels such as the Internet.
service like consulting, configuration Affiliate marketing
and customizations.
Involves repairing a product or
How does the VARs make money? service by sharing it on a blog, social
media platform, podcasts, or
VARs typically buy products from website. The affiliate earns a
suppliers, add ‘value’ to them in the Commission each time someone
form of features and services, and makes a purchase through the
then resell to end users. VARs are unique affiliate link associated with
often purchased products from their recommendation.
distributors and original equipment.
Manufacturers add features or Reason 1: The company enters a
new market.