Q: Why Focus on Harnessing Referral Sources If You’re Already Using Channel Resellers?

Our research of 600+ companies (incl. SaaS, professional services, and financial services) revealed who, what, when, why, and how people actually refer high volumes of profitable business.

So, here’s the Real Deal about why channel reseller programs disappoint:

1.  Channel programs are built on the premise that resellers only have a single motivation – and that is receiving payment for reselling. This is at the heart of such programs’ weakness because, people have a host of reasons why they resell.

2.  Once you set into motion a channel program, you inevitably see your acquisition costs increase. That’s because your competitors start paying resellers higher commissions. In turn, you must do the same to stay competitive. This back-and-forth escalates to the point where organizations feel “locked in” by their channel program.

3.  Channel programs are built on the belief that the only way to grow topline sales is by “scaling”. That means, you invariably incur the time and costs involved in recruiting, training, promoting, managing, rewarding, and measuring additional processes, people, and technologies.