Ted Finch

1
Chanimal Presents
Building a SaaS Channel A Step-by-Step Approach

• Ted Finch
• President, Chanimal Marketing
• www.chanimal.com

2
Overview - Contents

• Channel
• Defined (Level-Set Group)
• SaaS Differences, Concerns, Trends
• Phase One
• Defining (or Re-Defining) a Channel Program
• Phase Two
• Recruiting a Channel
• Phase Three
• Enablement
• Channel Management
• Ongoing Motivation
• Where to Learn More

3
Background Chanimal

• Chanimal The Ultimate Resource for Software
  Marketing at www.chanimal.com. Celebrating its
  10th year anniversary. 500 pages of online
  content. Ranked 1 by Google (channel marketing
  sales).
• Short for Channel Animal, Ted Finch 23 Years
  of professional marketing
• As co-founder and VP of Sales Marketing, built
  worlds largest high-tech product launch service
  company from 13 to over 4,000 people while
  executing the launch of over 400 products for
  over 150 companies (Microsoft, IBM, Adobe, HP,
  WordPerfect, Intel, Ashton Tate, Sony, Citrix,
  Autodesk, ATI, Creative Labs, Disney, Canon,
  Corel, Aldus, Compaq, plus more)
• Wrote marketing plan published Netscape
  Navigator (1 best-selling software in the world
  at the time) AOL. Helped inaugurate .dot com
  era.
• Wrote marketing plan, helped finance (27 million
  funding) form Red Storm Entertainment with Tom
  Clancy (Press release on USS Nuclear Sub
  Cheyenne, ABC, CBS, NBC)
• Former VP Marketing at Goldmine (1 Rated SFA),
  VP Marketing at 4 billion Harcourt (General
  Cinemas, Sea World, HRW), Sr. VP Marketing at 33
  billion Motorola (sat on Marketing board), VP at
  130 billion GE.
• Achieved five successful acquisitions.
• Speaker at dozens of conferences and events,
  quoted in over 100 trade publications high-tech
  books, produced, How to Finance a High-Tech
  Start-Up Video
• Has executed reseller programs for over 270
  companies

4
Terminology

• Level set the group
• Channel. How a company sells their product
• Direct. Company to End User
• Indirect. Company to middle man to customer
• Reseller. Anyone that resells product or service
• Affiliate. Refersdoes not sell (but still a
  channel)
• Partner. Legal term but means reseller
• VAR. Value Added Reseller (ads value with
  installs, integration, training, etc.)
• System Integrator. Development capabilities.
• Distributor. Wholesale distributor
• MDF. Market Development Funds
• Co-op. Co-operated funds
• Channel Conflict. Resellers and/or vendor compete
  for same sale

5
Note

• My slides will have a lot of density
• Not because it makes for the best slide
• But because it will be easier for you to remember
  what was said when you want to transfer this
  information to team members who couldnt attend
• Prepare for a high speed delivery
• Take quick notes

6
Three Phases

• Definition Stage
• Determining the elements of your reseller partner
  program
• Recruiting
• Finding enough of the right kind of resellers
• Enablement
• Ensuring they have everything they need to sell
  support
• Training (product, market, competition,
  resources, certification)
• Sales tools (presentations, demo scripts, e-mail
  templates, etc.)
• Systems (content/lead portal, forum, deal
  registration)
• Leads, model calls, coaching calls
• Motivation (contest, recognition, news)

7
Two Things Resellers Look For

• Is your product competitive?
• Can I make any money working with you?
• Do you have competitive margins?
• Is there a lot of competition in my area/region?
• Will you train me and my team?
• Do you have channel conflict (direct sales
  competes)
• Deal registration
• Well prepared sales tools (PowerPoint, market
  info, demo scripts, sales dialogues, content
  portal, etc.)
• Determined by your partner program

8
Defining Your Partner Program

• Structure
• Levels, margins, requirements
• Sales Tools
• Portal site (bucket of content)
• Market info, competitive analysis, spec sheets,
  e-mail templates, white papers, videos, case
  studies, sales presentations, brand guidelines,
  reseller forum
• Technical Sales Support Training
• Lead Generation Sales Help
• Requirements
• Reseller Experience

9
Defining Your Partner Program

• Have a free comprehensive spreadsheet at
  Chanimal.com that shows all partner features. It
  can be used to compare your program to others or
  make sure you cover all the bases.

10
Defining Your Partner Program

• Structure
• Levels
• Authorized. No quota, no commitment. Low margin.
• Gold. Quota, plus 1st level certification. Medium
  margin.
• Platinum. Higher quota, plus 2nd level
  certification. Highest margin.
• Why?
• Shared sales force. You want them to prefer to
  sell your product
• Help create dealer loyalty. To maintain their
  level, must meet quota. If sell competitorrisk
  missing quota increase loyalty
• Help you decide who gets any leads (highest level
  gets most leads)
• Concerns

11
Defining Your Partner Program

• Structure
• Concerns with levels
• Partners fear cant compete if they have to come
  in at the lowest level
• So, grandfather all new partners into the middle
  Gold level for the first 90 days. Longer for a
  new program.
• Require they meet minimum training goals, some
  minimum revenue
• For a new channel program
• Usually takes about 6 months (depending on sales
  cycle) to determine what the typical revenues for
  your best partners isbefore you can setup a
  quota range (or it is not fair)
• After you set the level requirementsthen give 3
  months to transition before moving down, staying
  or moving up

12
Defining Your Partner Program

• Portal site (bucket of content)
• Generic to start with, later it is personalized
  (unique content per partner with their leads,
  their plan of action, their deals, etc.). PRM
  application.

13
Defining Your Partner Program

• Sample portal
• chanimal.com/vars/portal
• 43 page sample partner portal with examples for
  all of the content

14
Defining Your Partner Program

• Sales Marketing Tools
• (Within Online Portal)
• Market information
• Which market segment uses your product
• Competitive Analysis
• Why should someone buy YOUR application
• Product Spec Sheets
• Ad Templates (if you have any)
• E-mail Templates
• Proven e-mail samples to help them promote your
  product
• White Papers
• Case Studies and/or Testimonials

• Sales Presentations (PowerPoint)
• Brand and Logo Guidelines
• Graphics Library
• Reseller Forum
• Helps resellers collaborate on deals
• Also see Saga Consulting
• These are most of the deliverables to put
  together

15
Defining Your Partner Program

• Program Decisions Policies
• Product Training
• New programs have low barrier to entryfree
  training
• Mature programs have barrierspaid training
  pricey certification (i.e., Microsoft,
  Salesforce)
• Typically free video training (Camtasia)
• See www.interspire.com (comprehensive)
• See www.planswift.com (over 80 free videos by
  topic)
• Dedicated Sales Rep
• Small companies a given (only 1 2)
• Large companiesa perk to have a dedicated person
  to help you

16
Defining Your Partner Program

• Program Decisions Policies
• Reseller Tech Support
• Small company not a big deal (not a lot of
  support needs)
• Large company resellers need a hotline where
  they dont have to wait in que (especially if
  they are on site)
• Pre-Sales Support
• Online RMA (Hardware, n/a with SaaS)
• System Configurator
• Needed when an application is complex and only
  supports select hardware (i.e., GE Security)

17
Defining Your Partner Program

• Program Decisions Policies
• Annual Partner Meeting
• Start with a Webinar. 2-4 hours. This will work
  for starters.
• Can grow to a multi-million annual event within a
  large company
• The equivalent of an on-site national sales
  meeting
• New product introduction
• New policies, pricing, competition, alliance
  add-on products, etc.
• FAE Support (not typically needed for SaaS)
• Pre/Post Sale Engineer (not typical)

18
Defining Your Partner Program

• Certification Program
• Designed to help partners
• Get up to speed on the product
• Helps them make money from pro services
• Provide better 1st and 2nd line of support
• Better integrate with the application
• Can be less rigorous with SaaS since the network
  is pre-configured. Still some major integration,
  import, setup, etc.
• Creates dealer loyalty (more invested)
• Tied to the reseller levels (Gold, Platinum)
• Program material decided after 1st 3-6 months
• Find areas of greatest partner questions, build
  it in

19
Defining Your Partner Program

• Pre-Qualified Leads
• Always include it in your program (one of top
  things they are looking for). Even if you only
  send 1 lead/yr!
• If you dont have leadsthen fix it (promotions,
  website, referral process). PlusSaaS sells a lot
  direct
• Internal sales doesnt call out of a phone book,
  why should external 100 commissioned sales
  people (paid for by someone else) use one?
• Need a lead policy
• Ensure leads are followed-up on in a timely
  manner
• See www.chanimal.com/vars/portal for sample lead
  policy

20
Defining Your Partner Program

• Deal Registration
• A reseller registers their deals with you
  (company, contact, deal size, etc.)
• Their concerns (you will steal the deal)
• Their benefits
• Get exclusive pricing (better margin) advantage
  over competitors
• Assistance from your sales to help close the deal
• Preferred pre-sales support to help win the
  business
• Promise that you will not call on the registered
  opportunities direct, and will credit them if
  their accounts order direct

21
Defining Your Partner Program

• Deal Registration
• Your Benefits
• You will know what is coming down the pipeline
  for sales forecasting
• You can elect to work with them to win the
  largest bids
• You dont have as much channel conflict (when two
  sales people (resellers or vendor) compete for
  same business)
• Increases margins for all since you
  selectively reduce the chance of competition
  from your own partners
• Policy details
• See chanimal.com/vars/portal for sample

22
Defining Your Partner Program

• Front end discounts
• Often part of deal registration
• Back end discounts
• Rebates, promotions
• Bid desk
• Important if you have enterprise applications
  that integrate with other systems
• The bids may get too complex for dealers
  initially, but they will learn
• Not important for non-complex applications

23
Defining Your Partner Program

• Reseller Locator
• Some contacts want to ensure local support and
  will look for local resellers to order from
• Having them e-mail or call eliminates benefit of
  24/7 self-serve
• Start with a graphical map of partners
• Move toward a zip-code look up as you get more
  partners
• Partners like to see their name on your website
• Guard with a re-direct script if worried about
  competitors recruiting your partners (I would)

24
Defining Your Partner Program

• NFR (Evals n/a applies to hardware)
• Discounted Not for Resale copies--access with
  SaaS
• Resellers are NOT your end users
• Know what they use, sell what they know, so get
  them to use your software
• Should be treated just like your existing sales
  people
• Do you charge your existing sales people to use
  and get to know your software?
• Can be free and used as BAIT to recruit
  resellersespecially if they can benefit from
  your software
• Always have a value attached (then promote FREE
  for recruiting)
• What we obtain too cheaply, we esteem too lightly
• Additional copies/access often discounted (COG)
• 5 - 10. 70 of resellers used. 31 used.

25
Defining Your Partner Program

• Joint Reseller Promotions
• MDF (Market Development Funds)
• Must have a policy (see chanimal.com/vars/portal)
• Used for regional promotions usually proposed by
  partners
• Trade show in their region
• Joint mailing
• Other items they may propose
• You can pick and choose which you will
  participate in
• Co-Op (co-operative funds)
• Usually accrued as a percentage of sales
• Not preferred, since often have less control of
  usage

26
Defining Your Partner Program

• Requirements
• Register
• Ensure you get enough information to profile
  them later
• Size, vertical markets, sales people,
  certifications, etc.
• One of my companies is paying over 38k just to
  re-profile all their partners since they
  captured little on the application
• Will use this information to map the
  characteristics of the most successful to recruit
  more just like them
• Helps to know their vertical coverage
• Qualify as a VAR (only if want a barrier)
• Purchase from an authorized Distributor
• Trick question. Designed to stop end-users and
  competitors from trying to find out more. Has
  phone to bypass

27
Defining Your Partner Program

• Requirements
• Required Business Plan
• Actually, it is a plan of action. One promotion
  per month for 1st 3 months to ensure proactive
  activity
• Reseller Agreement
• Chanimal.com has a lot of samples
• Covers independent status, right to use logo,
  termination clause
• Sales Quotas
• For gold or platinum levels
• Determine within 3-6 months
• Need to first know what is possible for
  resellers or may set it too low or too high
• Setup a ramp up period to achieve

28
Defining Your Partner Program

• Reseller Experience
• How easy are you to do business with?
• Pre-Sign up phone number
• Salesforce.com a PAIN
• Linksys record 7 calls
• Grid of program details
• Ease of registration
• Timely response for approval
• Automated e-mail response
• Perceived lead-gen capability

29
Defining Your Partner Program

• Reseller Sign-Up Page
• Basic hello (wont read)
• Program feature bullets
• NO product hypealready convinced if they got
  here
• Link to grid of program
• Link to application
• Channel Mgr contact info
• Provide the information that they need to make a
  decision
• Confused No sign up

30
Defining Your Partner Program

• SaaS Specific Issues
• Channel used
• Recommender program (45.4)
• Affiliate program (similar - terminology) (29.8)
• Aggregator (similar to a distributor) combines
  SaaS apps (34)
• OEM may or may not be private labeled (29)
• Uses a wholesale distributor (Ingram, Tech Data,
  etc.) (9.7)
• Have resellers (41 have, 11.4 expect to 52 )
• 48 of SaaS surveyed got 20 revenues via
  channel
• 80 of revenue via channel from many non-SaaS
• Why?

Percentages are from SoftLetter Report
31
Defining Your Partner Program

• SaaS Specific Issues
• Reseller margins ( paid)
• 60 pay 1-15 margin
• 19 pay 16-30 margin
• 21 pay more than 40 margin
• The margin for desktop/enterprise is typically
  20-50
• Note Even though they get a higher discount
  off MSRP, they often discount their bids
• Street price is discountedat their expense,
  not the vendors, so the margin they get is
  actually less (depending on how aggressive they
  bid) helps you to sell a lower margin

Percentages are from SoftLetter Report
32
Defining Your Partner Program

• SaaS Specific Issues
• Even with lower guaranteed margins
• VAR, Integrators and Consultants still expect to
  make a majority of their revenues via
  professional services (better be some)
• Training, configuration, integration with backend
  systems
• Dont assume they arent as technical as your
  team (mistake)
• Often MUCH more technical and can integrate
  better on-site
• Concerns of resellers with SaaS
• Who owns the account?
• SaaS vendor owns account activity (need to make
  it transparent to partner)
• VAR should still make revenue off training,
  integration, support
• Need to have some feeling of ownership, or wont
  support their sale
• How do they get paid?

Percentages are from SoftLetter Report
33
Defining Your Partner Program

• SaaS Specific Issues
• How are resellers paid?
• Issue same internal and external (should be
  alignment)
• Question
• If a sales person needs an extra 1,000 to make a
  house payment and he has the option to sell a
  10,000 desktop application (1,000 commission)
  versus a 12,000 SaaS application (100 per
  month)
• Which is he going to push?

Percentages are from SoftLetter Report
34
Defining Your Partner Program

• SaaS Specific Issues
• How are resellers paid?
• Thats a fundamental problem with selling SaaSit
  is like the car insurance industry and takes
  awhile to build residual income
• So the transition to adding SaaS products to the
  resellers line card usually occurs alongside
  traditional sales (or sales may starve)
• The sales person (where the rubber meets) cant
  cash flow the company via the SaaS product
• So the SaaS product often gets undersold
• However, an advantage of SaaS is that the sales
  and implementation cycle (with associated pro
  services) should be shorter (because of the lower
  initial payment), so it is a HEDGE product and
  brings in quicker and more stable incomeso it
  should be part of their mix (periodmakes good
  business sense)

35
Defining Your Partner Program

• SaaS Specific Issues
• How are resellers paid?
• An advantage of SaaS
• The sales and implementation cycle (with
  associated pro services) should be shorter
  (because of the lower initial payment price, plus
  much of it is pre-configured remotely)
• Resellers may not know the advantages it has
  not been their model
• Part of your challenge and messaging is to
  educate them
• Most of my SaaS companies contribute to the
  overall SaaS market development have
  presentation slides that show the advantage of
  SaaS along with product specific slides

36
Defining Your Partner Program

• SaaS Specific Issues
• How are resellers paid?
• Since selling SaaS via the channel is a similar
  problem to selling SaaS internally, lets look at
  the approaches
• Rule Align your commission with your sales
  objectives
• Current inside sales practices (SoftLetter SaaS
  report)

Payout Schedule 1-5 Million 5-10 million 10-100 million
100 Up Front 28 36 50
Pro-rated over Life 21 27 11
Part Up Front, Rest Pro-Rated 28 18 17
Wont equal 100 (balance is a combination)
37
Defining Your Partner Program

• SaaS Specific Issues
• Appears the more revenue, the quicker the sales
  people get paid (cash flow?) (Salesforce is an
  exceptionbut we cant always follow them (unless
  we create similar brand preference))
• We want sales people to sell it so we have to
  compete with desktop (align commission with
  desired behavior)
• Also want them to have advantages of residual,
  and service the accounts residually (more
  integration, keep accounts satisfied, sign up
  more users) or they wont want to talk to or
  help manage the accounts (like a car insurance
  agent)

Payout Schedule 1-5 Million 5-10 million 10-100 million
100 Up Front 28 36 50
Pro-rated over Life 21 27 11
Part Up Front, Rest Pro-Rated 28 18 17
38
Defining Your Partner Program

• SaaS Specific Issues
• Creative options? Recommendations?
• Dependant on YOUR financing and cash flow
• Dependant on your residual cancelation rate
• Depends on how long existing resellers have been
  selling SaaS products (can they cash flow the
  delayed pay)

39
SalesForce.com

• Largest SaaS company (over 1 billion).
  Interviewed Steve Lucas, SVP of Force.com
  Alliances
• Two programs
• Referral
• Consultant
• How many?
• 6,200 global (3,500 US) referral partner
  companies
• 550 consulting partner companies (these are
  typically VARs and System Integrators). Do
  integration services and training
• Thousands of independent consultants

40
SalesForce.com

• Comparisons
• Salesforce.com has 6,200 referral, 550 VARs/SIs
  (1 billion company)
• Intuit has 36,000 referral partners (100 million
  revenue (out of 1 billion company)
• Microsoft claims over 20,000 resellers
• Referral is their Affiliate program (tried to
  differentiatenot much difference)
• How much do they pay?
• Consultants most are also referrers

41
SalesForce.com

• How much do they pay?
• Pay referrals 10
• Justified it as, Guaranteed margin. Any
  discounting would come from the companys portion
  (but would only make 10 of sales price)
• How do they pay?
• Based on whatever revenue comes in over the FIRST
  year only. Said they were always looking to
  change that.
• Complex Month to month, year to year, multiple
  year (challenge)
• Didnt ask payment method (check, direct deposit,
  PayPal, etc.)

42
SalesForce.com

• How do they pay? (cont)
• Didnt ask about who closes for second year
• Referrers have to REGISTER a referred deal within
  their partner portal to get credit
• Didnt ask if they also track links via cookies,
  etc.
• When do they pay?
• 45 days after the end of the QUARTER
• Could be as long as 4 ½ months later for deals
  referred at the beginning of a quarter
• Pay on whatever is paid to them within that time
  frame

43
SalesForce.com

• How much do they pay inside sales?
• Wouldnt say ?
• How often do they pay inside sales?
• Wouldnt say exactly, but said that it is aligned
  very closely to how, when and over the same time
  frame as the channel
• They double pay (but dont consider the lead
  sold)
• Pay the affiliate (referrer) for the LEAD. Some
  come hot, some come colderonly pay for closed
  deals. Dependant on Salesforce to close (even if
  you could do a better job)
• Pay inside sales per SALE (closing the lead)

44
Assessment

• I see a LOT of mistakes
• Larger companies can make these mistakes (i.e.,
  Microsoft packaging, ads, etc.)but you cant
  afford to
• They already have momentum and brand
  preferenceyou may not
• Leaving themselves open to a more competitive
  partner program
• I have taken down similar players that had better
  products, by recruiting away their resellers with
  a better program (make more moneygo figure!)
• Standard affiliate fee is 10-15 so that is not
  too far off (for an affiliate)
• Dont reward partners that could close the deal
  themselves (and make the inside sales
  commissionwouldnt cost them more). Paying for
  just a referralneglecting some good closers
  (some that have great existing relationships in
  corporate accounts)

45
Assessment

• I see a LOT of mistakes
• Paying up to 4 ½ months laterthat is SIMPLE, but
  it is also not the way to motivate the channel
  (sales)
• Doggy does trick, doggy gets bone (4 ½ months
  later?). Youre kidding!!
• Most affiliate programs pay every 30 days on
  whatever has come through by that time
• The closer the pay is to the resultsthe more
  motivated the sales rep is to produce more sales
• One of my companies said, My sales reps are not
  motivated by the commission. They paid almost
  exactly the same way (4 weeks after the quarter
  (not 6). We switched it to payment 2 weeks after
  the check arrivedand they were HIGHLY
  motivated!!

46
Assessment

• I see a LOT of mistakes
• They only pay over the FIRST year
• Simple, easy to understand, but
• Does not encourage ANY localized service the
  first year (i.e., dont call me with how slow
  your system iscall them (I dont get paid for
  anything past the first year so I cant support
  you)
• Does not encourage mult-year deals (pay for
  behavior)
• Does not follow the insurance industry residual
  sale model to encourage partners to stay with you
  for years (so they dont loose future revenues)
• Unless more is paid up front (not in their
  model), then partners have deferred pay by
  selling SaaSwith the hopes of making more over
  the long haul. Partners are not aligned with the
  companies modelinteresting to see the results

47
Assessment

• Overall
• Said they looked at a lot of other partner
  programs but wanted to be innovative and simple
• Innovation for its own sake is not always the
  best model
• Ive seen simple sales comp plans, and the
  sales team (channel) has to understand itbut
  some simple options can make it MUCH, MUCH more
  motivating--which equals more sales

48
Update

• New VAR Program Very basic, needs refinement
• Pros
• Residual revenues on new accounts, plus existing
  if they setup new accounts
• Residual for ongoing renewals
• Reseller portal (sales and marketing tools)
• Cons
• Auto approval competitors can step right in,
  need to qualify
• No levels (no minimums) no loyalty, no
  segmentation (who do you give leads to)
• Not capturing enough profile info during
  registration
• Requires certification (5k barrier to entry)

49
Phase Two Recruiting

• Process
• Profile reseller type
• By vertical market, geographical region (US and
  International), by technical capability, plus
  more (takes about15 to compile)
• Obtain list (strategy)
• Competition is my 1st Source Competitive
  counterstrike. Pulled over 800 off one
  competitors website (recruited over 150 of them
  in 6 weeks)
• Alliances. Similar customers, non-competing
  vendor. Know exactly which of there are best and
  can help you recruit them. Formal alliance will
  give you listotherwise hit their website
• Specialized list. CMP, SoftDatabase, The VAR City.

50
Phase Two Recruiting

• Process
• Obtain list (cont)
• List brokers by SIC code (but want e-mails to
  start)
• Create prospecting and management database
• Salesforce.com (seem to have mixed reviews),
  Goldmine, Act!, Interspire
• Start contacting to recruit
• 3 part initial e-mail campaign (I have samples at
  Chanimal.com)
• Incentive is often an NFR copy/access (if your
  software can help them)
• Phone calls
• National road shows (with alliances (recruited
  800 in 6 weeks)
• CRN reviews, Ads, direct postcards, etc.
• Hire rep firms
• Last campaign recruited 792 resellers in 8
  weeks

51
Phase 3 - Enablement

• On-boarding
• Training
• Materials (sales scripts, presentations,
  templates)
• Product
• Support
• Sales
• Marketing promotions
• Systems
• Need leads, approaches, prospecting tools
• Motivating

52
Reseller Channel

• A 100 commission, indirect sales force
• They take all the risk
• They cover their own expenses
• Often provide their own leads
• Can sell multiple competitors products
• Must build loyalty to increase reseller
  recommendation
• So should you treat them worse or better than an
  inside sales employee?

53
Reseller Channel

• Dont complicate it channel management is
  sales management
• The same rules apply for managing a channel as
  for managing a sales force. For example
• Would you hire a new sales person and then
• Not train them on your product
• Not provide any presentation material, sales
  scripts, demo script, phone dialogs, or have no
  model calls, no coaching calls
• Not provide leads, no systems
• Have no contest, provide no motivation
• Have no contact (for weeks/months at a time)
• No. So how come you treat your outside sales
  force with so much neglect?

54
How Come?

• I hear it time and time again, a vendor signs up
  hundreds of resellers and then says, My channel
  isnt selling anything.
• Yet your internal sales team is selling. Why?
• You are not doing anything with your outside
  channel sales team. They are 100 commission and
  take all the risk, so you neglect them.
• If you paid them all salary and commissionyou
  would not neglect them at all.
• Do the same thing as you do with your internal
  sales team, and you will get similar success.
  Sounds obvious, but

55
Phase 3 - Enablement

• On-boarding
• Approval e-mail (then CALL quickly would you
  e-mail a new sales rep, or talk to them?)
• Portal Orientation
• Product Overview (sales presentation (model
  call), not product training)
• Explain 90 day promotions (tied to Plan of
  Action)
• Follow-up

(Sample Chanimal On-boarding Checklist)
56
Phase 3 - Enablement

• Training
• Same as you would do with inside sales and inside
  support
• Product. Detailed product training (videos,
  internet, webinar). Start of certification.
• Support. Known problems and issues and
  resolution. Part of certification.
• Sales. Sales scripts, sample presentations,
  public webinars, sales training (prospecting,
  presentation skills, overcoming objections,
  closing)
• Marketing. Regional promotions that work, SEO
  with your product, joint promotions.

57
Phase 3 - Enablement

• Motivating
• Contest (weekly, monthly, quarterly, annual)
• Recognition (monthly newsletter)
• Do ALL the same things with your channel as you
  do with your own sales teamand you get similar
  results. Seems obviousbut companies get lazy,
  dont assign resources, and are negligent yet
  somehow think it is fine to just hang them out to
  dry once they bring them on board.
• Then they tell me that the channel doesnt work
  for themwhen they dont work to help their
  channel.
• This is Channel Management not channel
  neglect.

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Channel Management

• Do ALL the same things with your channel as you
  do with your own sales teamand you get similar
  results. Seems obviousbut companies get lazy,
  dont assign resources, and are negligent yet
  somehow think it is fine to just hang them out to
  dry once they bring them on board.
• Then they tell me that the channel doesnt work
  for themwhen it is the opposite--they dont work
  to help their channel.
• This is Channel Management not channel
  neglect.
• It is the same thing as good sales management
  (which is NOT passive)just with an external 100
  commission sales force.
• I ran a 350 person 100 commission sales force.
  Many were my friends. I didnt dare let them
  failthey were taking a risk and trusting menot
  to let them fail.
• We need to do likewise with reseller partners
  that trust us, to help them succeed.

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Summary Three Phases

• Definition Stage
• Determining the elements of your reseller partner
  program
• Recruiting
• Finding enough of the right kind of resellers
• Enablement
• Ensuring they have everything they need to sell
  support
• Training (product, market, competition,
  resources, certification)
• Sales tools (presentations, demo scripts, e-mail
  templates, etc.)
• Systems (content/lead portal, forum, deal
  registration)
• Leads, model calls, coaching calls
• Motivation (contest, recognition, news)

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Free Resource

• Chanimal.com The Ultimate Resource for Software
  Marketing
• Over 500 pages of software marketing and channel
  content
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  / month
• Has templates, examples of most everything all
  FREE!
• Plus, if you are not signed up yetstay a day and
  sign up for the Channel workshop. This
  presentation is a small FRACTION of what youll
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  ever condensed into a single day. Learn in a day
  what took over a decade to learn from building
  channels for over 270 high-tech companies.
• Leverage the channel and increase sales!

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Thank You
Building a SaaS Channel A Step-by-Step Approach

• Ted Finch
• President, Chanimal Marketing
• www.chanimal.com