5 Great Reasons For Software Manufacturers To Outsource Channel Management

5 Great Reasons For Software Manufacturers To Outsource Channel Management

In today’s changing technology landscape, it is imperative for a manufacturer to have a good channel management team with a solid go to market strategy.  There are companies today that specialize in running a company’s channel program for them.  This approach to channel management comes with many benefits.   Here are five great reasons for software manufacturers to outsource their channel management program:

1. Specialized Expertise

In order to sell a great software product you must have good representation and an effective strategy.  Many companies look outside their organization when it comes to these needs.  A company that specializes in outsourced channel management can bring a unique insight to an organization with their vast knowledge.  They know how to solve the following challenges:

  • Analyzing the competition to understand their strengths and weaknesses
  • Creating a strong and cooperative channel network
  • Identifying partnerships that produce solid and consistent results
  • Creating metrics for a customer to track performance and make corrections


2. Cost-Effective

A professional channel management company can also prove to be very cost effective for some manufacturers.  A direct sales force requires a large amount of upfront money and time devoted to train the employees.  The channel management company, on the other hand, will likely charge a monthly fee for their services.

3.  Quick Return on Investment

ROIA channel management firm can get better results in a fraction of the time with their already established network of partners.  It’s a numbers game.  The channel management company can get the manufacturer introduced to multiple partners who each have a large sales force of their own.  As the number of partners and sales reps grow, so will the reach for the manufacturer’s product.

4.  Broader Market Penetration

A channel management company will most likely have a network of partners spread throughout the country.  This network gives the channel company the flexibility to assess where an organization is weakly represented and find partners in that area to actively sell.

5. Stronger Relationships

Strong partner relationships is a must when it comes to growing your channel and revenue.  It would be tough for a manufacturer to grow in the channel when the partner is unfamiliar with their company or products.  This is where a channel management company can set themselves apart.  A lot of times, a channel management firm has built their partner relationships up over an extended amount of time.  This long-standing relationship is critical when it comes time for the channel management firm to ask their partners to take a look at a new product.  A partner is more inclined to consider a new product when the message is coming from someone they have built trust with.