NOTE: You can adjust the speed of the video (.5 to 2x faster) at any time by clicking on the 1x button on the bottom of the video controls. See graphic below:

Industry Terminology – The Language of the Channel

The industry has its unique terminology. Sometimes it can be confusing. It is important that everyone gets a level set and calls everything the same thing. For example, at Motorola, they called their resellers “distributors” or disti’s for short. It was correct, they distributed the product–but to the end-user (which made them resellers). The term distributor typically means a wholesale distributor in a two-tier model. Everyone must speak the same language.

Watch the video and review the PowerPoint PDF to learn the fundamental terms of the channel–critical since this course will be using the standard terms throughout. Study this section carefully since there will be numerous questions about it in the quiz.

Lesson Materials

• Lesson PowerPoint: Channel Management Defined. Industry Terminology–the Language of the Channel (PDF)

Special Reward

In the video, it stated that you won the “I Survived Award” for not dying of boredom. Click HERE to download your hi-res printable PDF. Congratulations!

Resources

To reinforce the terminology (you’ll need multiple exposures to this new language to make sure you understand it before proceeding). and also to get a good overview of the elements of a channel program, you will want to watch the video below, “How to Create a Reseller Program.” (1 hour 14 minutes)

This has been the standard channel presentation given at SaaS University and at numerous channel conferences throughout the country. Although created as an introduction to the channel, even experienced channel managers will find valuable tips.

Note: This second video refers to several resources (portal content with password, a kit, etc.). This is the video given at channel conferences, but the content referred to will be provided in subsequent lessons (updated and refined). Keep going!!  😉

This section addresses creating a competitive channel program. Make sure the download and use the spreadsheet below–it is one of the CORE spreadsheets I use whenever defining or fixing a channel program–it helps determine the applicable elements (i.e., deal reg, levels, leads, NFR policies, etc.). You’ll get additional exposure to this worksheet in another section–but this is how it is used to compare your existing program to the competition’s program.

Lesson Materials

• Lesson PowerPoint: Competitive Channel Analysis (PDF). Detailed analysis of your competitor’s channel program–and how to leverage weaknesses. Do they have channel conflict? Do they have too many or too few distributors? What is their recommendation rate? Easy to work with? Do buyers like them?  Is your product competitive? Good program (deal reg, leads, free training, certification, levels, NFR)–holes you can leverage.

Resources

• Defining Your Partner Program – Elements of Your Program (Excel). This worksheet is used to define a new partner program–but also to do an assessment of a competitor’s partner program. How to use this worksheet is in a later worksheet, but it is for setting up a new program. You can use it earlier to do an analysis. This is the FIRST worksheet I always complete (takes 1 hour) whenever I consult–since we have to define the partner program the elements we need–then we start to put it together. Instructions:
  1. Replace the Acme name with your own company name.
  2. Above are numerous samples of actual partner programs as a sample. If you are defining a new partner program, you can leave the data. If you are doing a competitive analysis, you can replace the samples with your top five competitors. It contains every element of a partner program. The top labels each have helpful comment files explaining the topics.
  3. Proceed along the titles on the top to define or compare your program. Put on “X” in your program if you MUST have this feature to launch or compete. X means you must have it. A RED X means it is missing (you’ll add it to your deliverables to complete). Later means you want it, but don’t need it to launch. O means you don’t need that feature.

Lesson Materials

• Defining a Channel Program – Elements (PDF). While still at the program definition stage, it introduces the concepts of levels, online portal, partner application, agreement, support, configurator, annual partner meeting, FAE support, certification, lead policies, territories, and deal registration.

Resources

Review the following  REQUIRED sections on Chanimal

• Channel Marketing (Website). Be prepared to be tested on the roles of channel marketing and channel sales, direct or indirect channels.
• How to Create a Reseller Partner Program (Website). You should be able to recite the three phases of a partner program and be aware of the elements of a partner program (including NFR and levels). Check out any of the existing partner programs–and the Chanimal partner program samples.

Other Resources

• Are User Agreements Enforceable? (Website). Most reseller agreements are “click-through” acceptance–exactly like an End User License Agreement (EULA). Some agreements MUST be signed (i.e., sometimes the government requires a signed agreement of their security mandates with security products), but most do not–they can be accepted during the application form. This article will help you make the defense for the standard reseller click-through agreement when some companies still think it must be signed, or that it is more enforceable.

Lesson Material

• Lesson PowerPoint: Profiling Your Partners (PDF). How to identify the right partner type. Learn the easiest way to profile, plus a powerful tool that creates the ideal profile to recruit.

Resources

• Partner Optimizer (Website). Details about one of the industry’s most powerful systems to match your product to the perfect partner. As I like to say, “If a reseller spits–Partner Optimizer can tell you which direction.” It is the holy grail of all databases (over 150,000 resellers) with incredible profile information and an intelligent system to achieve perfect matchmaking.