How to Adapt and Thrive in a Changing Partner Ecosystem

… a virtual walk through of an actual client engagement. The more training, the more comfortable the partner will become with the summary elevator pitch that provides just enough information to get buy-in from the potential customer. Most service providers want to expand their portfolios, including embracing new technologies and new markets, which is all possible with the right training and enablement. This more collaborative approach to deal flow builds trust between partner and vendor while enabling “load sharing” — providing the customer with the best possible service and outcomes.

One invaluable tool that vendors can provide their partners with is a “battle card,” which consists of a two-page summary of the product offering, features and benefits, the value proposition and company overview. This can be an invaluable cheat sheet for partners that are just being onboarded.

The Many Flavors of Channel Programs

Another key element for a successful partnership to consider is that there are many different flavors of channel programs — one size does not fit all. Depending on the size of the company, a distribution channel may not be the right choice. For emerging growth companies, a referral and a reseller program provide the best frameworks to enable companies to scale as they grow.

One key benefit of a referral program is synergy with partners that don’t want to carry their own contracts. This lowers the risk for smaller service providers and other partners that may not want to take on risk. A resale model typically requires the partner to execute its own contracts and provide tier one escalation and support services, which requires more of an investment and is higher risk than a referral program. It also requires massive investment in the partner, which can be a challenge to smaller emerging growth companies.

Another advantage to referral programs for emerging growth companies is the ability to strengthen the bond with customers while building brand equity. While reseller and distribution models degrade some of the company’s brand recognition, referral programs allow vendors to retain some control of the customer relationship. Partners are incentivized for referrals and collaborate with vendors, while the vendor maintains control of product delivery, after-sales service, etc., all which work to maintain brand recognition, which is critical to smaller companies that want to scale quickly.

The IT channel has evolved dramatically over the past decade. Emerging growth companies can take advantage of referral and reseller-based partner models to accelerate company growth, create new revenue streams and attract a new breed of customer. The goal is to continue to provide meaningful value to the customer, and this requires a vendor/partner relationship build on a foundation of trust, and an alignment of values, goals and core expertise.

Kirk Horton is channel chief and vice president for channels and partners at Netacea, where he is helping build Netacea’s partner organization. His previous experience includes executive positions at Akamai, IPR International, QTS Realty Trust, Nautilus Data Technologies, Telx, Cable & Wireless, Digital Island and Sandpiper Networks. You may follow him on LinkedIn or @Netacea_AI on Twitter.