If we can sell direct, why should we sell through partners?
I had a meeting this week with one of my client companies who are at the leading edge of the industry with their expertise and technology. They really have a tremendous market opportunity. Talking to the board members and key individuals of this small innovative company led to addressing the question:
“How we best capitalise on this international market opportunity in the marketplace?”
“We can target the market directly and talk to 30 of the relevant companies. This will definitely produce more than enough consultancy and follow on technology sales to establish us in this space.”
“The downside to this is that once we get into delivery mode it will tie up the key people very quickly and it’s hard to keep selling to continue to grow and we really only have a limited window of opportunity here”
My thoughts: “sell direct, but include securing strategic partners in your sales process.”
Then “If we can sell direct, why should we consider selling through strategic partnerships?”
How about the following reasons for selling through corporate partners:
- The offering is defined and easy to explain. The benefits can be communicated easily. Partners will understand quickly and see the opportunity quickly.
- Reduce Cost of Sales – You could partner with organisations who have strong commercial relationships with your target clients. They can get you straight in the door on a commercial basis, thus greatly speeding up the sales process.
- Focus on Your Strengths – You have a limited window of opportunity before other organisations establish themselves and take over your opportunities, so there is an element of land-grab working with your selected leading organisations. They may deliver the bulk of the services, but at least you can sell the premium services and grow your team accordingly and sell software licences also.
- Access to larger sales force – Partners will present and sell your offering in their market far faster than you can. They are more established and in the market sector and/or region you want to be in.
- Access to broader market – You can’t be everywhere at once, but you can build up a partner network to get you into key sectors and regions.
- Increase revenue sources – you cannot have the full pie from each customer, but should target to have a more premium piece of the pie from many customers
- Increase licence revenue growth – increased number of consulting customers brings more software licence revenue opportunities
- Increase shareholder value – a wider spread customer base means a more stable business and growth path, thus increased business potential and increased shareholder value.
Besides, if the company’s strength is not in sales, why not let other people sell what we do. We can always sell direct as well.
Donagh Kiernan, Maidsfield Associates
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