Why Indirect Sales Will Help You Grow In 2021

A new year means new goals and preparation for channel organizations. Hence, we’re going to walk you through some building blocks to get your channel organization right for the upcoming year. 

To start 2021 with a bang, we interviewed Edwin Rubens—Founder and Owner of Channel Concept Company. He is a channel expert with an impressive track record at HP, Fujitsu, Intel, and others. 

Let’s start by discussing the main challenges of sales organizations. 

What are the top 7 challenges for organizations?

All businesses want to grow and be successful. 

Before you can reach your goals, you have to overcome these main challenges:

 

Why is indirect sales a growth lever?

Why is an indirect sales model powerful? 

First, let’s get back to the basics. 

In a traditional sales model, you have a company and sales reps who can help your business earn money. They manage four or ten customers each depending on your product or services. If you want to grow your business, you have to hire new salespeople and train them. However, there is a limit to the number of salespeople that you can hire.

In contrast, an indirect sales model involves collaboration with resellers to sell your products, solutions or services.

Every reseller could have three salespeople on average. If you have four resellers with sales teams that can handle 15 customers each, then you can reach around 60 customers. To manage this, you don’t need multiple salespeople. Instead, get one or two people to manage resellers to help your business grow and expand.

Just looking at this sales model proves that indirect sales is a lot more scalable and manageable for an organization’s growth. 

To put it into perspective, here are some of the main benefits of an indirect sales model:

If you look at the top hundred worldwide companies, more than 70% are running an indirect sales model. Intel, Microsoft, Cisco, HP and Dell are just some of the few top companies with an indirect sales model.

Building blocks for a successful channel organization 

There are three main building blocks for a successful channel organization:

  1. Channel connection 
  2. Channel competencies
  3. Channel communication 

The first segment is channel connection. 

Here are the elements of this building block:

The next segment is channel competencies. 

Here are the elements of this building block:

The final building block is channel communication. 

Here are the elements of this building block:

All these building blocks and elements must be in place to run a successful channel organization. 

From theory to practice

There are a lot of bases organizations must cover to be successful. 

To put theory into practice,  Edwin Rubens shared a nine-step sales channel concept that can help you achieve crucial parts to implement the building blocks. 

Here are the questions you should consider with your partners in mind:

Implement something with these building blocks in mind. If you have no idea how to build your partnership, you won’t be able to succeed. 

Now how to put the theory into practice? Edwin Ruben has a stairs model that shows the steps you need to consider when running your organization.

 

 

First, look at the culture and establish trust with your team and focus on the structural building blocks we explained previously. Then, you can run your business, communicate with partners and ensure your business grows. Finally, expand by taking care of your partners, initiatives, marketing and start accelerating. 

The support for the start and the next steps

Experienced salespeople and sales managers will know that indirect sales management is a lot harder than it looks.

To guide you to the right path, we highly recommend getting in touch with Edwin Rubens and checking out his company website at Channel Concept Company

We created an ebook on the top 5 tools to use for indirect sales in 2021. With the right knowledge and resources at your fingertips, you can start the new year with a bang.

We thank Edwin Rubens for the provided data.

Re-watch the webinar here

By Frie Pétré