What Vendors Don’t Understand About Partners

Larry Walsh, chief analyst at Channelnomics, discusses the performance challenges that channel chiefs face, explaining that they’re rooted in a fundamental misunderstanding of partner business models and ill-conceived presumptions about partner capabilities.

Being a channel chief isn’t easy. Channel leaders face numerous challenges, including getting partners to perform in a way that contributes to company goals and revenue-generation expectations. This underlying challenge is amplified by the struggles that come from transitioning channels to new service and subscription models.

In the 2022 Channel Chief Outlook report, Channelnomics reveals that 85% of channel chiefs say they’re challenged in getting partners to adopt new products, technologies, and services, while 83% say they’re grappling with getting partners to meet or exceed their sales goals. And 71% struggle to get partners to adopt new go-to-market models — mostly based on services and subscriptions.

What’s the source of these challenges? Walsh posits two possible answers: myopic thinking and a fundamental misunderstanding of partner business models.
Over the past two decades, resellers and integrators evolved their business models beyond transactional product sales and break/fix services. Partners make most of their money on managed and professional services. But vendors continue to think that they have to lead partners into the future of services and that partners are behind in their service capabilities.

In this episode of Changing Channels, Larry Walsh, chief analyst at Channelnomics and host of the podcast, details what vendors get wrong about their partners’ business models and capabilities and what they need to do to overcome the challenge of generating superior channel performance that contributes to their corporate goals.

Episode Resources
2022 Channel Chief Outlook report

Channelnomics Quarterly




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