Apple’s Channel Sales Strategy

Arrogance in channel partner relationship is rare but is not unheard of. Companies like Apple for example has the “cajones” (let me borrow from Mrs. Sara Palin’s colorful vocab) to be arrogant and shall we say, less than accommodating to some of their resellers because Apple knows their products are highly coveted and in some cases, revered.

In most cases, channel sales strategy includes pleasing the channel partners as much as the client because vendors know that majority of their sales come from their network of channel partners. Vendors, especially the lesser known ones, have to build their brand in order to be successful and in order to build a reputation for quality, they need their channel partner’s cooperation.


partner profiling

I wonder how Apple’s channel sales strategy differs from the regular hardware and software manufacturer. How are the partners compensated and motivated? How much incentives are given? Do they have access to a partner portal to make their jobs easier? How is conflict averted in their network?

With Steve Jobs visionary and detail-minded approach to business and technology, I’m sure that majority of channel partners are satisfied with the vendor’s partner program. Although the company was criticized for lack of commitment to resellers, and lack of communication, the company is still trying to enhance their channel distribution.

In one unique aspect, Apple has gotten away with much conflict even though they are selling their products directly through their websites and stores. But even the great company is aware of their limitations. They could not for example, build stores and reach millions of customers all around the world. The company realizes the importance of channel partners in bringing their products to the greatest number of people.

Is it right to be arrogant knowing that millions of people consider your products iconic and thousands line up to buy your latest gadgets? I think Apple should check their egos out the door. The company is not perfect and has had their fair share of flops in the past. Treating channel partner fairly can only lead to better sales performance and the company should acknowledge their contributions to the success of the company.

Channel Terms You Should Know

If you are greenhorn in the industry of technology and marketing looking to set his own path, you may want to know these few terms that you should really, really understand if you ever hope of competing in the market. As a fellow newbie, I just started to understand this stuff and had a hard time figuring things out. So here goes the definitions:

channel sales strategy

Channel software
Every channel sales strategy needs one. As the name implies, it is a program developed to organize the different channels that your company has. The channels usually only differ into two: direct selling types and indirect selling types. Regardless, these branch out into more complex and specific branches which have their own properties, like retailers, resellers, wholesalers and telemarketers. The software is basically to help you keep in track of what is happening in the channel network that you possess.

Channel Conflict
When two or three of your channel members have encountered each other over the same prospect, be aware that you may want to change your channel software. This is what it means when there is a channel conflict –two channel forces that you own that are competing each other they supposedly shouldn’t. There are many ways to avoid this but keeping track of your channel management is the best way to do it.

Channel Management
As the name suggests, this is the process of keeping everything under control with the use of channel software. It used to be that the Excel sheets were one of the best ways to list which is to be listed like sales per day, quota expectations and whether they were met, etc. Now, the software provides various functions for managers to let themselves be updated without really looking at every last detail by the end of the day.

Partners Portals
Portals are applications used by the associated members outside of your own company. They provide an all around solution to manual channel sales strategy. The channel members can access the data you have given them and even update their own information on the website. Good management provides this accompanied by other marketing data and their own accounts and passwords.

Why should I Care about Partner Loyalty?

For any business owner, managing your own business is hard and it only gets tougher when you also have to care about other people’s business. I am taking about partners and not exactly their partner profiles. Its basic knowledge in any channel management strategy that administering some of your partner’s operations is a given, especially if your company is considered the parenting one. The channel distribution network is dependent on the performance of the partner. However, just knowing that they are important to keep the business flowing is not enough.

partner profiles

Whether you like it or not, partner loyalty actually plays a big role in this triangular, web relationship. If loyalty is strong within the partners, that would imply that the members are committed enough or sometimes more than willing to make the business work for everyone in the relationship. The more they are loyal to the relationship, the more you can expect your productivity and sales to increase. However, this is often not the case.

So what do we do? If you are someone who ranks high within the organization, there is only one thing to do: inspire them. Although this is easier said than done, there are a lot of ways to do this.

First, putting incentives in various aspects of their performance such as a perfect attendance or a “beat the record” kind of incentive would definitely boost their performance. Competitions that promise and guarantees huge prizes or rewards within the company will also help them in increasing their efficiency at work. Although be aware though, as this type of strategy is a double edge sword because some workers may put down their skills if they usually see the same people winning the contest. Add benefits or privileges to their work. Everybody loves working when they know that their work has something to offer that other people can’t have or do outside the company. Even freebies are a good push to the will when it comes to the labor of hard selling.

The bottom line of this is that the overall business relationship will strengthen, hold and grow if the members are more than willing to improve the status of the company. So for all you managers out there, be more sensitive and understanding to your partners and employees and not merely pay attention to their partner profiles.

My Tips on Making a Good Partner Portal

As a newbie associate manager, I have learned today that designing partner portals wasn’t that easy of a task. I’ve come to realize that partner portals have become an integral part of any channel management program, not that all software focusing on management needed one

However, I think such portals have an essential role in solving conflicts between channels. I can imagine how hard it is just to think about manually handling these types of organizational arrangements within the company. My boss said there are certain characteristics which I have to follow in order to gauge if a portal would be efficient enough for the business. Now, I figured, I should make my own tips on making a partner portal simple but good.


channel management solutions

First, I think a portal should ensure a free flowing content and that it should be free from any complex sentences since this type of sentence is sometimes more than a hindrance to the reader. Simple sentences give much more emphasis as well as memory retention. The portal should be simple and easy to read but should still convey the accurate meaning of any data or information shared. As they say, less is more.

Being exhaustive of the data is also a factor to be considered in designing a portal. The inclusion of important matters regarding the company, like certain policies found especially in the company, should be given and readily explained. The comprehensive details of the organization should also be given in order to tell clear information and avoid problems at later stages of any business relationship. Being clear about the sales and shipping facts are also a must if they are to be involved in the information exchange.

And of course, lastly, is the security option. Only authorized personnel should be allowed to enter and roam the premises of the portal. I understand that some companies give out more vital information to their partners which should sometimes be kept secret from their competitors. That is also why some companies pay big just for security of their portals particularly if they have many partners. The link to the portal should be found on the main website where it would entail the representative of each company in the partnership to login their credentials.

Channel Sales Strategy for Google Apps

Google has moved from just a search engine to telecommunications and software manufacturing. It’s amazing to think that Google started out with just a clean webpage with a text box and two buttons. With cloud computing solutions ushering a wave of new vendors seeking opportunities to provide services long confined to traditional software that needs installation, Google is staking its claim on a slice of that delectable cloud pie with innovative channel sales strategy designed to entice large and small channel partners.


channel sales strategy

In their quick start video, the company explains why they need partners in order to sell their products. Users need a trusted and reliable reseller to explain the benefits of the application. Just because Google is a name that even your grandparents have heard of, it does not mean people are going to start using their paid apps.

As a newbie channel partner, I find that Google’s Reseller Program to be a very streamline and simple program. I don’t know how else to put it, but it definitely has that Google feel. While as a channel partner, my relationship with my clients and customers are the assets, Google’s involvement, does not mean that relationship will shift to the company. Instead, the former just-a-search-engine encourages partners to foster that relationship, recognizing the trust placed on the reseller as an expert in the software industry.

The cloud based apps include the following products: Gmail that can contain 25GB per user, calendar and email mobile applications, docs application with 10GB of storage, migration and integration tools, and increased security for the cloud.

As expected, the company comes complete with a partner portal for channel partners. A partner portal plays a very important role in channel sales strategy in every product. From the looks of it, the channel program contains marketing materials, customer databases, lead registration and more.

The Three Components that Make Channel Management Successful

Channel management services are increasingly gaining popularity in the world of business. Various industries are looking to them for better performance and increased productivity as partners are able to effectively transport goods and services down to their target consumers. But what are the components that helped cement the success of these services? I have identified three, and they are the following:

Partner Portals – Managing partners can be a taxing responsibility, especially since they can be located in various places even outside of the country. Effective partner relationship management is dependent on efficient and effective communication and collaboration, and partner portals can guarantee both. They are web-based applications that allow the parent company and the different channel members to interact with one another and share important information, training programs, and other vital resources for an exponential increase in sales performance.


channel partner strategy

Deal Registrations – These are very beneficial to all the members of a channel distribution network and its end consumers. These can help improve business relationships by widening and deepening them. Healthy partnerships results in increased partner loyalty which means more sales and profit. In addition to this, they are also very useful in dissipating channel conflicts which can have the serious potential to harm the pipeline.

Lead Management Programs – The funny thing about leads is that they are so hard to obtain even though they are extremely needed. Having programs for lead management will provide partners with the information and tools necessary to get leads easily. Once they are obtained, it is very important to execute proper management strategies to follow up on them.

I think that channel management services that provide all three of these are sure to be very reliable and successful. Having partner portals, deal registrations and lead management programs is evidence of a company’s dedication to their partners’ needs and motivation, thereby showing their impressive managerial skills in the handling of their sales network.

Why Bother with Partner Loyalty?

If you are a business owner like me, then you should understand the importance of your channel partners. Basic knowledge of channel management strategies will tell you that a channel distribution network depends on partners to transport goods and services down the pipeline from manufacturer to end consumer. In other words, they keep the flow going so that you enjoy more profits.


partner profiles

However, knowing that they’re important is not enough. You have to take the time to analyze and invest in a channel management solution and a partner portal so that partners are well-managed and taken care of. This way, you can inspire loyalty amongst your channel members. But why even bother with partner loyalty?

Believe it or not, loyalty is a big part of a channel’s success. If partners are loyal to a company’s channel, then that implies that they are committed to making the business work. That is to say, they will work hard to make more sales and become more productive for you and for themselves.

To inspire loyalty in your partners, you need a good channel management strategy and a partner portal. A portal is a web based application that grants access to those who have been provided with authorized logon credentials. Once logged on, members can enjoy the benefits of accessing important information, pricing details, channel programs, training, support, trends and other resources that are pertinent to the enhancement of their performance. They get to know about various incentives which will push them to perform better. Furthermore, they will get to know your company and your product line more which gives them increased confidence to make sales and interact with the end consumers.

The bottom line is that you should not be complacent with just knowing that partners are important. You should do your part as a parent company to provide them with the knowledge, training, and support, so that they will know that you are a credible leader who deserves their utmost effort.