By leveraging the power of the channel, vendors broaden their reach to a broader set of customers and prospects. The ability to build relationships with value added resellers will allow you to magnify your sales reach far beyond what you could do with an internal sales team. This penetration allows a vendor to increase sales in a very cost-effective manner. Like any business partnership, it is important to have good channel management practices so these relationships provide the maximum mutual benefit. Further, Small and Mid-sized organizations usually rely on a local partner as a trusted advisor to their business, making the role of the channel partner even more critical to vendors to reach those customers and be considered.
Understanding the channel your products will sell best in and identifying the most productive partners that service that channel is a large part of the frustration of channel sales. It is this frustration that leads some vendors to launch a channel program that is limited in both size and scope. If you plan and execute a responsible and reasonable channel program you will have no problem increasing sales and profits.
An effective strategy should be built on the power of numbers. As the number of people that represent your product increases, so should the reputation and sales of your product. It is easy to see why a dedicated partner to your product will directly impact your growth.