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.