Managing Through Channel Partners and Third Parties

Mark McGraw and Josh Pitchford are back together, and discuss the key components of distribution sales, how to train distribution reps effectively, and the key to building strong, profitable relationships with channel partners.

To find our handout for this episode, click here.

Tune in to learn how to build an over-communication culture, reduce friction, and set your distribution sales up for success.

• Josh starts by explaining what it means to sell through distribution.
• Unlike direct sales, selling through a channel means you’re always working through a gatekeeper, limiting your access to the end user.
• According to Mark, the big difference between traditional selling and selling through a channel. Direct sales let you control the conversation, but in distribution, you must equip your channel partners with the right knowledge to represent your product effectively.
• Mark highlights the challenge of information filtering in distribution sales. Because communication passes through multiple layers, ensuring the right message reaches the end customer requires careful management.
• The one thing that will mitigate the challenges of selling through a channel is over-communicating. Frequent touchpoints and clear messaging help prevent misunderstandings and missed opportunities.
• Mark shares why discretion is necessary when training channel partners and how overloading them with excessive technical details can be counterproductive.
• Josh reveals the biggest mistake most companies make when training a distribution channel.
• Instead of flooding partners with product specs, they should teach them the right qualifying questions to ask potential customers.
• Mark explains how to tailor product knowledge for distribution reps. Focus on the key commercial and technical questions they need to ask to qualify leads efficiently.
• Josh warns about the high opportunity costs in distribution sales. The process can be long and expensive, properly qualifying prospects is essential to avoid wasted resources.
• People buy from people they like, and distributors are no exception.
• According to Josh, building strong, trustworthy relationships with channel partners increases the likelihood of them prioritizing your product.
• Josh highlights how distributors gravitate toward selling products that are the easiest and most profitable, making it crucial to reduce friction in your process.
• Be mindful of the requests you make to your distribution partners. Too many demands or added complexity can discourage them from selling your product.
• Mark and Josh share ways to reduce friction among channel partners. Simplify processes, minimize extra steps, and build strong relationships to make it easier for them to push your product.
• The importance of senior management relationships in distribution. If a distributor’s leadership has strong ties with a provider’s leadership, the partnership is more likely to succeed.
• Mark explains that managing a distribution channel isn’t just about deals. 
• To reduce friction, limit the number of requests you make on distributors. The more time they spend on administrative tasks, the less time they spend selling your product.
• Mark explains the importance of rules and guidelines for partner relationships. Rules must be firm, but guidelines allow flexibility for common situations, ensuring smoother collaboration.
• The one thing to remember about making exceptions in distribution. Every exception sets a precedent, potentially turning into an unofficial new policy over time.
• Mark and Josh agree: Distributors should never feel replaceable. If a distributor believes they are easily replaced, they won’t invest effort into promoting your product, so building loyalty is key.

 

 

Mentioned in This Episode:

BuildingYourSalesEngine.com/follow

Sandler.com

BuildingYourSalesEngine.com/sandler

Josh Pitchford on LinkedIn

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