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Business Case for Investing in Your Indirect Channel

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As channel executives, we all know in our head and hearts that virtually any investment in the channel will generate a very strong ROI for our businesses. But reluctant finance executives want more proof, a stronger plan, and evidence that an investment in the indirect channel will really work to drive profitable revenue. The following illustrates a solid business case for investing in the indirect channel:

  1. 400 resellers (20% of these represent 80% of total revenue generation)
  2. Primary focus in Americas and Europe
  3. Channel represents 40% of revenue today / forecasted to grow to 50% in year one and 60% in year two
  4. Need $630K in channel investment to attract, activate, advance and advertise the channel
  5. Need one new hire plus new tools, training, and enablement and marketing funding

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Indirect Channel Investment Plan:

Indirect Channel Investment Plan

Impact Forecast for Indirect Channel Investment:

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Incremental Revenue and ROI Calculation:

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Specific TechHarmony Action Plan to Meet These Objectives:

1)      Reseller Attract Strategy:  Research reseller motivations and build programs, communications and tools to attract and acquire 50 new resellers by end of year one

2)      Reseller Advance Strategy:  Develop and deploy web-based reseller planning and business case selling tools to help better target prospects and close more deals

3)      Reseller Activate Strategy:  Define needs and build a set of tools and programs to show resellers how easy it is to sell our solutions and how they can make more money with it

4)      Reseller Award Strategy:  Develop new reseller incentive programs where they are rewarded handsomely for exceeding more aggressive growth targets

5)      Reseller Advertise Strategy:  Enable resellers with self-service and full-service through reseller automated marketing solutions to generate better quality sales leads

6)      Reseller Architect Strategy:  Design a set of partner portal, deal registration, and content management tools to streamline doing business with TechHarmony

Success in channel investment starts with identifying the highest leverage investments to enable growth.  The Six A’s of Successful Channels represent the highest ROI areas for accelerating growth for an indirect channel.  The purpose of a business case for the investment is to help determine the sensitivities of the investment components to help optimize the return.

 

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