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Remember that suppliers not
only use channel programs because
agents can provide substantial reve-
nue gains but also because channel
programs allow the supplier to save
on personnel costs associated with
individual account management. If
the supplier feels that the agent is
not working in stride to maintain and
grow the customer base, that agent
is at risk for termination.
4. Don’t fall victim to pride.
I’ve
heard countless agents tell me that
they will not use a master agent be-
cause they want a direct relationship
with the supplier. While a direct re-
lationship can provide an ego boost
at the time of signing, consider that
suppliers are much less likely to go
to war with a master agent over an
individual agent. Even if the supplier
wins a commission battle with a mas-
ter, the PR hit during the process can
have a devastating effect on future
agent recruiting. With an individual
partner, no matter how much revenue
is in play, many times the supplier
will take their chances when it comes
to fighting a battle. Remember that
there is strength in numbers.
Many times suppliers still will
provide the same personal touch
to subagents that they give to their
master agent representatives. This
includes access to channel manag-
ers, sales support, sales engineer-
ing and even senior management
during times of need.
5. Remember that the supplier
is in business to make money.
During my 15 years in the chan-
nel, I’ve heard this statement many
times: “Why should I sacrifice ANY
of my commissions to help you win
a deal?” Agents sometimes want
suppliers to take drastic margin hits
on specially priced applications but
want to preserve every penny of their
commission. How is that fair? That
can lead to short-term victories and
dramatic long term losses.
When times are tough, execu-
tives look to low-margin deals and
they search for ways to increase
profit. If the agent played dirty to
win, the supplier may play dirty
when they need to win in front of
their shareholders.
Keep these things in mind when
managing your relationships with
suppliers. Don’t let ego or emotions
get in the way of business, and you
will be in tremendous shape for
years of residual payments.
o
Bruce Wirt has
15 years in chan-
nel sales leadership
and is currently the
channel chief at
Telesystem, which
includes the LSI
organization as well. Connect
with him on LinkedIN to share
your success stories.
channel management
Channel
Vision
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March - April, 2017
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