What is a channel partner?
A channel partner is a third-party business or individual that works with a manufacturer or producer to market and sell their products, services, or technologies. They help manufacturers expand their distribution network and market presence by offering specialized services or expertise and providing local customer engagement. Channel partnerships offer several benefits, such as increased sales volume for manufacturers and diversified product offerings for partners. Additionally, these partnerships provide access to a wider customer base and enhanced support and resources.
Types of channel partners include:
- Independent salespeople, agents, or consultants who boost sales
- Agency partners who assist in business functions and product maintenance
- Distributors are crucial for businesses with physical products
- Affiliates who promote products or services for commission
- Value-added resellers (VARs) who enhance a product or service with additional benefits
Businesses often use partner management software to efficiently track their channel partners, encompassing aspects like recruitment, onboarding, co-branded campaign reporting, and managing affiliate sales and payments. Collaborating with channel partners strategically aids in scaling operations, avoiding heavy marketing costs and workforce expansion.
Leveraging a partner's network and reputation boosts credibility and market access, while bundling products or services, like integrating marketing software with creative packages, sets a business apart, offering streamlined, comprehensive solutions that spur growth.
Explore the best PRM software to easily onboard and enable your sales partners, and track their performance.
Whitney Rudeseal Peet
Whitney Rudeseal Peet is a former freelance writer for G2 and a story- and customer-centered writer, marketer, and strategist. She fully leans into the gig-based world, also working as a voice over artist and book editor. Before going freelance full-time, Whitney worked in content and email marketing for Calendly, Salesforce, and Litmus, among others. When she's not at her desk, you can find her reading a good book, listening to Elton John and Linkin Park, enjoying some craft beer, or planning her next trip to London.
