Hello Antonio,

On Dec. 8 we will be conducting a seminar titled: "How To Blueprint, Build, and Manage your Reseller Channel: 6 Critical Components To Ensure Smooth Selling With VARs" hosted by SoftwareCEO Software University. More information can be found here - http://softwareceo.com/events/120805.php?sku=71 . From this page you will find links to a "Channels Readiness" quiz that would be a good exercise to review the state of your current program and find some early indicators pointing to what might be going wrong based on your existing partner model and expectations.

This course is designed to assist ISVs with a new reseller channel or organizations planing on rolling out a new partner program by delivering the information, insight and tools you need to address the problem of partner commitment, buy-in and proactive sales.

The problems you identified are common and can be overcome by taking a number of definable steps that insure a quid-pro-quo partnership, attract productive new partners and reward them for meeting or exceeding their established goals.

A more direct response to your question is that what you've identified as reseller partners are actually passive "agents" or "affiliates" waiting for some money to come rolling their way through their association with your organization. They have made no investment or commitment to your product and program and are in effect a drain on your resources rather than being a productive member of your Channel community.

Agents can be an effective arm of your partner Channel if they are one element of a broader approach that includes dedicated (with quota) resellers, systems integrators and "sales influencer" consultants. Generally agents enter a program because they have a 'deal in hand' and want a one-off exception to close the business.

This is your first, and best, opportunity to turn them into a productive member of your partner program; and, an opportunity that too often slips away due to too much attention turned towards the deal and not the development of the new partner surrounding the deal. Don't let great partnership possibilities take a back seat to a series of one-off and time consuming actions - have a formal ready plan that moves them into the program attached to the deal.

Channel Cheers,

Ken

Ken Beam, The VAR-City -- "Channel Start-Up Specialists since 1995" Phone: 972.240.8793 or kbeam@thevarcity.com

So, you expect some VAR to make market for you? Nope, that's your job.

In a tiered distribution model, there needs to be significant marketplace pull, or there needs to be a significant reason ($$$$$) for the VAR to take on your product.

If I had a white board, I could draw a picture of that tiered distribution model that would show the following premise. At the early stages of a product life cycle, the sales need to be direct. Later as you move up the the product life cycle (watch out for that chasm!), the channel will begin to approach you. These forlks are notorious for sniffing out a buck. Some might argue that they are only looking for the easy buck. I don't subscribe to that notion.

Then, as you reach the height of your product life cycle, you will probably begin to pull away from the channel. There are tons of examples where this has happened.

So, my suggestion is to go sell the product and understand everything there is to understand about the sales cycle. Then, as you grow, the VAR channel might be more appropriate.

You've gotten good advice here. Yours is actually a pretty classic case study repeated over and over.

I've found over time that there are really 2 product situations that VARs will be useful for any kind of "push":

1) Commodities, easy sales that "jump out of their bag"
2) Products that are strategic, that allow them to build core services around, or complement those core services

Even in these two cases, getting actual push as a new entrant is usually difficult.

You aren't 1) but seem to have some potential to be 2)

It won't come quick or easy, but if you are patient, here are a couple of things that will work over time:

A) Create demand, and sell direct where you don't have an active partner. That will get more attention than giving leads to people who don't do anything with them, if you make the sale. The more you sell, the more you sell. And partners will start seeing that you're selling stuff, and customers will start asking them about your product. Interest will go up. As stated by others, this is really the key to the VAR channel. In aggregate, it is a demand-driven bunch.

B) Look for what I call the '20 maniacs"; these are the few VARs you will find interested enough in a newer product (assuming you have an attractive value proposition!) that they will actually provide some push for your products. The trick here is that they likely won't be the same VARs that you are approaching in the market. Newer ISVs tend to approach the established VARs, and get the cold shoulder like you have. The "20 maniacs" are likely to be brand new or newer and unknown like you, and a lot hungrier than the established VAR. They are looking for something new or different that they can hang their hat on and take into the marketplace, that is DIFFERENT than their established competition. When you find these people (or more likely, when they find you), don't brush them off because they don't look like they are serious players. Give them a chance; if they prove themselves by making sales or at least actively selling, support them with your maximum effort.

Don't give up; your attempt at entry into the market and it's reaction is actually quite predictable. You just need to fine tune your understanding of what makes this channel tick, adjust your expectactions and approach. If you stick with it, you can learn to use this channel successfully.

Phil Morettini
PJM Consulting
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