FOUNDER’S GUIDE TO B2B SALES System Integrators (as channels) System integrators can embed your offering in their packaged solutions. By default, systems integrators tend to form co-marketing alliances, but over time those relationships may evolve into cases where the SI builds their own packaged solutions and “bakes in” several partner products to them. These are effectively OEM relationship but in the context of solutions, not products. They are rarely white-label. Two-tier Distributors Two-tier distributors = master distributors who distribute your software through their own network of resellers. Typically used to reach small/medium businesses with easy-to-sell products that have pull in the marketplace. Example • Ingram Cloud THE KEY TO PARTNERING: CLARITY The best partner programmes have clear expectation management This should cover areas including: • How and when referral fees are earned (e.g. deal registration systems). • How the company will manage tricky situations (e.g. multiple integrators each bidding their solution on the same project). The best channel programmes have clear territories that minimise overlap Typically, if channel partners don’t have their own territories, distinct from direct sales, the end result is cherry-picking (i.e. the best leads are taken by direct sales and only the bad ones are passed onto partners). Geographic boundaries work well for separating direct and indirect sales (e.g. geographic distributors). Size floors work well within geographies (e.g. direct sales only to companies about $500M in revenue). SPRING 2023 .48