| • |
The
size of a channel partner is very important but
the largest is not necessarily the best for you.
You must have mind share on your product. You
need over 10% of a distributor’s business
portfolio to be of any importance. A mix of distributor
size within a region is a good idea. |
| •
|
How
do you know who a good distributor is? Don't
rush into choosing ‘a’ partner which
may easily turn out to be the wrong partner.
It is costly in both time and money to get out
of a “bad” relationship.
|
| • |
A
large amount of management time and money is required
to repair a mistake. |
| • |
A
mediocre distributor provides you with mediocre
results |
| • |
Be
honest and straightforward in your dealing with
your distributor. |
| • |
You
do not control your indirect channels. You MANAGE
them. |
| • |
Key
to managing channels is building relationships. |
| • |
The
best partner is the one who sells the most products
to make you the best returns. Don’t get
confused by other non-financial factors. |
| • |
Don't
get tied into an exclusive agreement without a
contractual volume commitment. |
| • |
In
the beginning of the relationship, the first 3
to 6 months, everyone is excited with the possibility
of making money. Use this early time to build
a good relationship and make sure you fulfill
your obligations. Set the pace, boundary and expectations.
Do more during this period, it will more than
pay off. |
| • |
Over
communicate during the first 6 months of the relationship. |
| • |
Don't
just ask your channel to take inventory without
a clear marketing strategy. |
