Most of IT vendors sells through channel ecosystem, involving distributors and system integrators. And though all is sold through channel – they still rely on two internal divisions to acquire revenue – channel & sales. Both should be supported by marketing and both share goal to drive revenue and EBITDA. So… what’s the difference?

In general short – channel relies on selling through others, sales is customer-direct. But we just agreed (hopefully!) that all IT vendors sales are channel sales… so why the separation between sales and channel organization? Let me give you my view on that point.

Channel positions are made to help Partners grow with the Vendor. They educate on portfolio, remove operational impediments, help with internal processes and generally act a little bit like “scrum master” to assigned Partner portfolio. Therefore – they do not directly involve themselves in purchase processes in particular deals.

The channel manager’s scope of activities can include (but is not limited to):
– creating partner business plans
– helping them achieve and maintain they Partner levels
– organize workshops and knowledge transfers
– supporting with processes like accessing and using Partner Portal or Deal Registrations
– sharing information on latest pricing strategy and product focus

Typical KPI’s are number of Deal Registration in the region and per Partner, number of new Partners, number of Partners which acquired higher level, average deal size per Partner, number of deals or certifications per Partner and number of attendees on Partner-focused events. The success for Channel is to have educated and product-capable Partners which create and maintain steady pipeline with high closing rate.

Sales are about closing the deals and bringing revenue “across the line” to the company. The main KPI is the revenue brought to company per month, quarter or per year. If we said that Channel does not involve themselves in direct sales, we meant mostly the closing and all compelling events which take place during customer-facing meetings. In Sales You take ownership for Your territory, for the number – and it is pretty easy to point if You perform well or not.

In the vendor channel-first ecosystem, all Account Managers need to be Channel as well:
1. The final pricing negotiation always is between Customer and a Partner
2. Partners will be Your best prospecting and pipeline building force – You will be their follow-up’er and deal pusher
3. Unless your professional services are involved – You will not be 1st line of maintenance/support

By that time you may see the roles within both organizations requires some skills that are different and some that are same. It is the usage ratio which differentiates with each position and the environment.