Direct or Channel??

July 19, 2016

What is the best sales strategy for a growing business eager to get their message out to the market?

 

Obviously both have their benefits as both models are established, therefore how do you choose your best route to market.

 

A Direct Sales team provides focus, commitment and is easier to control and monitor.  However, a direct model has limitations in terms of reach and volume as well as the obviously cost constraints. Let’s face it, the quality and size of any direct team is governed by whatever budget is available to a business.

 

Channel Partners on the other hand allow you to utilise other companies Sales teams and therefore can significantly increase the volume of business opportunities.  All sounds good, however as a trade-off there has to be a lot of trust in going the Channel route – mainly because you have no real way of policing what message these ‘partners’ are projecting.  Also, Channel Partners do not do things for free, therefore you also have to factor in a fee % which still makes your goods/services relevant and satisfies all parties.  Truth is, every company is different and therefore because of market Intel, budgets, strength of relationships, uniqueness, etc., every company will have different drivers.

 

For me it makes sense to secure a blend, with again % split being governed by each companies own personal position at the time.  Either way, as sales are the life blood of any company it is imperative these questions are asked and answered on a regular basis to give your business a fighting chance in today’s market.

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