Valentine’s Day and Developing (and Optimizing) Your Distributor / Dealer Network

Lately we’ve been on a number of calls with one of our clients, working with their area management as they develop / define their dealer/distributor network and during the discussion we talked about the types of questions to ask a prospective channel partner.

In each instance the area manager was focused on “getting them to sign the document”.

But we cautioned, “you first need to understand their business model, their objectives, how they go to market, what “niche / segment” do they focus on and fill for you”, how you can bring them value and a myriad of other questions. In other words, we were suggesting them that instead of getting to “yes”, it is more important to “date” first (and yes, we did use this analogy.

Developing a successful reseller network can take two forms … you can take the saturation approach and essentially authorize anyone who can “fog a mirror” (euphemism for pay their bill / is credit worthy). Alternatively, you can take a more selective approach and seek partners who help you achieve your goal while you’re helping them achieve their goal .. a mutually beneficial relationship.

The only way a profitably growing mutual relationship is developed is by both parties asking questions to make sure there is a good fit.

Remember when you were dating … it was (and may still be) an iterative process. More information gets learned about each other through a questioning and “spending time” process. If both parties agree that there is an opportunity, then the “marriage / commitment” can occur.  It is better to spend time upfront than to result in a divorce. (and with yesterday being Valentine’s Day, the analogy became very appropos.)

Identifying prospective resellers, learning about them and planning with them enables top performing companies (both parties) to succeed. And interestingly, when distributors narrow down their salespersons’ account base inevitably their sales increase … perhaps there is something to “more focus, more understanding and improved support generating increased account penetration and sales?”

And yes, sometimes you need more salespeople, or different sales channels / processes to effectively serve your market and customers.

So, do you speed date (either participate in saturation distribution or feel that you’ve been on a speed date) and “fog the mirror” or do you feel that you’re in a committed relationship where both parties know what is expected of each other, know how to help each other grow their business and participate in iterative planning?

And yes, the analogy may be corny … but, isn’t it accurate?