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Avoid Channel Management Worst Practices

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Author: Joe Owens

Channel management is a great way for companies to enjoy exponentially more profitable businesses through channel partners. Establishing strong business relationships with these partners or affiliates who sell the products and services of a parent company are critical elements for better performance and productivity, and ultimately success. A lot of the best practices in this strategy are widely known and practiced, but worst practices are often overlooked. It is advisable to become familiarized with the worst practices in managing channels in order to get a clearer picture of what to avoid.

Channel Management Worst Practices

"One-and-Done" Mentality - Having this kind of mentality with lead management, order capture and service is unfavorable. Usually, once the management system has finally been launched, managers, directors and other higher-ups of high-tech manufacturers in various industries known for cut throat pricing become lax and feel relieved that they can settle back into old routines. This means that things will go on as before despite the fact that there is now system in place that cost substantial amount of financial investment. The people who were once so involved and passionate about it are focusing on new projects. The management system of the channels will not change or evolve for the better.

Losing Touch with Sales - Manufacturers who achieved initial success with their strategies take their high-performing managers, directors and VPs, turn them into problem-solvers and then long-term business process owners. An unfortunate situation that continues to take place in various companies is when an effective director focuses all of his or her energies on making the management system of channels perfect. He or she most likely worked diligently with necessary tasks such as system integration and collaboration with IT managers to work out the kinks. The problem with this scenario is that the marketing director was so focused on organizing the system that sales were neglected.

Lack of Integration Expertise - Struggling vendors tend to exaggerate or overstate their ability to handle integration during recruitment. There are manufacturers that simply rely on the references the vendors provide them without conducting a thorough review of their references and background.

Vendors that Wait for the M & A - Predictably, there will be more than forty different mergers and acquisitions all throughout the enterprise software. Three of these will particularly realign overall CRM and channel management. It is important to be wary of vendors who are waiting for M & A. It is imperative that a manufacturer stays away from vendors that have experiences of battling with investors and boards, rapid turnover at the top and trading below cash. Keep an eye out for vendors that can thrive even if they are integrated into another company. Such positive qualities to watch out for are a large and profitable customer base, process-centered applications, strong cash position and established sales and channel organizations.

Ignoring W2 - It is vital that the combination of streamlined manual processes and their automation for ease of sales must echo on the W2s of the salespersons who rely on them.

About the author: A computer graduate and loves to travel. Reading current news in the internet is one of his past times. Taking pictures of the things around him fully satisfies him. He loves to play badminton and his favorite pets are cats and walk with them in the park with some dogs.

You may want to take a look at a Channel Management web page for more information and details or you may call us directly at 877 226 2564 (TOLL FREE). (

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