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Channel Sales: an in-depth guide for partners

June 14, 2022 | 257 views

Channel Sales
So, you’re interested in potentially becoming a ‘channel partner’ for a vendor or parent organisation.

Whether you’re already familiar with what channel selling entails, and want to learn more about your options, or the term is a completely new addition to your vocabulary, we’ve created this resource to give you as comprehensive a guide as possible.

Most of the information out there is aimed at the vendors and parent companies themselves, to help them multiply their growth and exponentially raise their profit margins.

So we thought we’d take a different approach, and focus on supporting the needs of aspiring channel sellers themselves.

We’re going to start by explaining everything you need to know from the ground up.

So you have all the information you need to make an informed decision regarding your channel selling aspirations.

Just what exactly does ‘Channel Sales’ mean?

Leading technology consulting firm Gartner defines Channel Sales as…

“The indirect sales channel that a business-to-business (B2B) sales organisation uses to go to market.”

This definition certainly isn’t incorrect, but it doesn’t exactly make the whole dynamic easy to picture.

What does this actually mean in real terms? What does this look like?

Allow us to explain.

The key word to focus on in Gartner’s definition is indirect.

When we imagine a traditional sales dynamic – where a company sells a product that they make straight to an end customer – that’s direct sales.

The reason is, as the name implies, that there is no intermediary or middleman to speak of in this relationship.

The vendor and the customer are in direct contact with one another, and the vendor has complete ownership of the business relationship in question.

Channel sales on the other hand is indirect sales – which means there is an intermediary involved in completing the process.

That intermediary is the channel partner.

A channel partner: in basic terms

A channel partner is an organisation that is contractually enabled to market, sell, distribute, implement, or otherwise deal with the products or services of another company on its behalf.

So if direct sales involves Company A selling to a Customer, channel sales involves Company B selling Company A’s products or solutions to that Customer.

Company B may also manage the relationship with the customer, and oversee the sales process.

Channel sales can take many different forms. But we’ll dig into that shortly.

Still keen to learn more about being a channel partner? Have a look at this infographic

First, let’s contextualise how widespread channel selling is, current attitudes towards it, and how it is proving to be of benefit to more and more businesses.

Channel Sales: The State of Play

In today’s business landscape, channel sales represent a significant driver of revenue for many successful organisations.

According to Forrester, 75% of the world’s commerce consists of sales made via channel partnerships.

The world of channel sales is rich with opportunity. And that means organisations looking to sell, distribute or implement the products and services of other businesses can hope to reap significant benefits.

Recent findings from DemandGen’s 2022 Channel Partner Benchmark Survey suggest there is a bright future ahead for the world of channel sales, especially for the sellers themselves...

Execs are confident in the money-making ability of channel sales
DemandGen’s Benchmark Survey concluded that most B2B executives are confident in channel sales as a reliable route to market.

Despite the fact that many respondents in the survey claimed their own partner programs to be falling short in terms of efficacy, these same business leaders anticipate channel partners will bring in higher levels of revenue in the months and years to come.

As such, leaders and other influential voices in sales strategy are focusing more on their channel partners than before, and investing in them to help expand their sales efforts.

B2B leaders are increasing their channel partners
More than 80% of business leaders have stated they will increase the number of channel partners in their network – and over 25% of them will look to do so ‘significantly’.

Meanwhile, 66% of B2B leaders anticipate more than 11% gain in revenue will be attributable to channel partners.

Channel partners are receiving more investment…
Around 70% of those surveyed in the DemandGen report stated plans to increase their financial investments in channel partner support.

…and other resources too
More than 40% plan to upgrade solutions supporting the training and learning of the channel partners in their ecosystem.

Overall, the data appears to suggest that channel selling is in a healthy state.

Organisations looking to engage in reselling, marketing or distributing products and services can expect greater demand, greater investment, and greater access to resources designed to support sales enablement.

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The major factors driving the market include the massive migration of data center workloads to cloud platforms, increasing frequency and sophistication of cyber-attacks on cloud computing systems, and growing need for cloud-native protection that provides a contextual view of risk and prioritizes remediation with action steps. “Ermetic is a pioneer in CIEM. This foundational expertise is a critical component that filters into the entirety of their CNAPP platform and enables us to provide detailed code and policy update recommendations that can be manually or automatically applied to instantly reduce cloud security risk,” said Dominique Singer, VP of Strategy for Eden Data. “Devops teams have very little time for security, so Eden Data needs to be explicit, prescriptive and risk-focused with our cloud configuration recommendations. Ermetic has empowered us to deliver reliable, specific, clear guidance on top priorities in a thoughtfully organized interface.” The Ermetic CNAPP uses an identity-first approach to unify and automate cloud infrastructure entitlement management (CIEM), cloud security posture management (CSPM), cloud workload protection (CWP), infrastructure as code (IaC) security and Kubernetes security posture management (KSPM). It unifies full asset discovery, deep risk analysis, runtime threat detection and compliance reporting, combined with pinpoint visualization and step-by-step guidance. “Although organizations recognize the need to implement a comprehensive cloud infrastructure security program, they often lack the in-house multi-cloud expertise to manage it themselves. 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Benefits Deal registration with increased margin for identifying opportunities Proposal-based Marketing Development Funds (MDF) for demand and lead generation Sales incentives for driving growth and eligibility for rebate plans Requirements Certification Program that involves four hours of training, provides four hours of CPE credits, as well as a Certified Ermetician certificate and social media badge Achieve annual program certification goals to maintain status Participate in periodic Ermetic partner updates and surveys Abide by Ermetic Rules of Engagement MSSPs The Ermetic MSSP program is designed to enable partners to offer risk-based vulnerability management, prioritization and remediation services to their customers. Authorized and Premium levels provide escalating benefits for partners as their Ermetic business volume grows. Benefits Access to the Ermetic Partner Portal, partner communications, and field sales and marketing support, including Market Development Funds (MDF) Ermetic licenses are owned by the MSSP and can be allocated at their discretion Ermetic provides cumulative volume discounts, so partner costs decrease as volumes increase Partners own the customer support relationship; with no direct communication from Ermetic For more information on joining the Ermetic Above the Clouds Partner Program visit: https://ermetic.com/partners. About Ermetic Ermetic reveals and prioritizes security gaps in AWS, Azure and GCP and enables organizations to remediate them immediately. The Ermetic cloud native application protection platform (CNAPP) uses an identity-first approach to unify and automate cloud infrastructure entitlement management (CIEM), cloud security posture management (CSPM), cloud workload protection and Kubernetes security posture management (KSPM). It unifies full asset discovery, deep risk analysis, runtime threat detection and compliance reporting, combined with pinpoint visualization and step-by-step guidance. The company is one of America’s Best Startup Employers according to Forbes and led by proven technology entrepreneurs whose previous companies have been acquired by Microsoft, Palo Alto Networks and others. Ermetic has received funding from Accel, Forgepoint, Glilot Capital Partners, Norwest Venture Partners, Qumra Capital and Target Global. Visit us at https://ermetic.com/ and follow us on LinkedIn, Twitter and Facebook.

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