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In the world of Channel sales, just about every independent
sales Agent operates with multiple products in their sales kit. Regardless of your industry, the product set
will typically range from entry level services to the most cutting edge
technology available, paired with everything in between.
So how does the Channel Sales executive convince the Agent
to sell their product over someone else's?
A lot of factors can play a role in this decision. Let’s examine a few…
1.
Residual Income – just as in direct
sales, the amount of commission to be made in the comp. plan will drive what
the Agent sells on a regular basis. If
the Agent makes 20% residual on Widget A and 7% on Widget B, he/she is going to
sell Widget A whenever possible. Simple
2.
Support – Support from the Channel team
also plays a critical role in the Agent’s decision on who’s product to sell on a regular basis. If the sales support on Widget A is better
than that received on Widget B, easy decision.
It becomes complicated when Widget B provides exceptional support while
the sales team support on Widget A is less reliable or even non-existent. The extra sales support makes Widget B easier to sell, and becomes a viable option as you should close more sales with Widget B, offsetting the lower residiual number vs. Widget A.
3.
Customer first – We hope every Agent
sells with the best interest of their customers in mind but we know that is not
necessarily the case. Many times the
products are driven by Factor #1 (residual Income) rather than customer
needs. It’s unfortunate, but it’s
reality.
4.
Training – the amount of training
provided by a Channel team can be critical in persuading an Agent to choose one
supplier over another. If you take the
time to visit your agents, train them on the latest product offering your
company has, and arm them with customer success stories and references, it
helps build confidence in your business model and will drive more opportunities
your way.
So with all these factors plus many more in play, is it best to confront
the factors head-on or try another proven method to drive business?
IMO, accepting the fact that your Agents are going to sell
other companies’ (even your competition) products is the first step to being
successful in the Channel. Trying to convince them to do otherwise simply doesn't work. Once you
understand the model, how you adapt your business model to the competition is
critical.
I have found developing a “Road map to Success” by using your
product and illustrating how the Agent can add your product line to every
potential sales opportunity they come across is the quickest and easiest way to
grow business with your Agents. By
developing and training your Agents on a technique to put your offering in
front of every prospect, you will see more interaction and more sales
revenues. The key is to differentiate
your product by highlighting your advantages over your competition and
illustrating why only your product will fit the “Roadmap to Success”, close
sales quickly, and make more money.
To learn more about my “Road map to Success” and how I have
successfully driven more business by integrating a “Road map” approach, drop me
a note at dave@davehanron.com. Happy to share my thoughts.
Have a great “Road map” in place already? I'd enjoy sharing
your comments with my readers
