Glossary
Channel sales
Channel sales is a model where a company sells its product through third parties, such as resellers, distributors, agencies, system integrators, referral partners or marketplaces, instead of, or alongside, its own direct sales team.
What Is Channel Sales?
In short Partners come in a few common types.
Resellers and distributors buy and resell the product. Value-added resellers and system integrators bundle it with their own services. Referral and affiliate partners pass leads for a commission. Marketplaces list it where buyers already shop. A channel manager recruits, trains and supports them.
The upside is reach: partners already have relationships and trust in markets your own team cannot cover. The cost is margin, which goes to the partner, and less control over the message and the customer experience. Channel conflict, where direct reps and partners chase the same account, is the classic problem to plan for.
Channel Sales Example
Example: an HR software company sells direct to companies with more than 200 employees and recruits 40 payroll bureaus to resell to smaller firms, paying them 20% of first-year revenue. In this example, partners bring in 35% of new customers within a year.
Channel Sales in Practice
Many B2B companies use outbound to build the channel itself: they list the agencies, consultancies or resellers that already serve their ideal customers and pitch them a partner program, then support partners with co-branded campaigns.
FAQ
What is the difference between channel sales and direct sales?
In direct sales your own team sells to the customer. In channel sales a partner such as a reseller, distributor or agency sells or refers the deal, and usually keeps a margin or commission.
Is channel sales the same as indirect sales?
Yes. Channel sales, indirect sales and partner sales describe the same model: selling through third parties instead of directly.
What are examples of channel partners?
Resellers, value-added resellers, distributors, system integrators, managed service providers, agencies, referral and affiliate partners, and cloud or app marketplaces.
What does a channel sales manager do?
They recruit and onboard partners, train them on the product, run joint campaigns, manage deal registration to avoid conflict with direct reps and own the revenue partners bring in.
Do This in Ken
Do This in Ken
Build the partner list in Ken Search, for example agencies or consultancies in your target industry, then pitch your partner program with email and LinkedIn sequences in Campaigns.
- Module
- Ken Search
- Open in Ken
- /features
The new Ken opens to the waiting list in batches.
Related
- GTM Glossary
Every GTM term, grouped by topic.
- Go-to-market strategy (GTM strategy)
- B2B sales
- Inside sales
- Outside sales
- Account executive
- Ken features
Sources
| Source | Checked |
|---|---|
| Salesforce: What is channel sales |
Changelog
- Page published.