Back Office
February 13, 2025
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Channel partners play a significant role in driving business growth by extending a company’s reach and enhancing its market presence. They collaborate with businesses to sell, distribute, or promote their products and services and help create mutually beneficial relationships. From resellers and distributors to system integrators and managed service providers, each type of channel partner serves a unique purpose in the sales ecosystem.
Understanding the different types of channel partners is crucial for businesses looking to optimize their distribution strategies, increase revenue, and build stronger customer relationships.
This blog discusses different types of channel partners, their roles, and how they contribute to the overall success of a business. Whether you're looking to expand into new markets or streamline your operations, identifying the right channel partners can be a game-changer for your business.
Channel VARs, or Solution Providers, are the most common and famous channel partners. In simple words, your product will be taken by the channel resellers; they’ll add a profit margin to it and add value in several ways to deliver it to end customers.
They can be your local business partners with expertise in specific geographic areas and sufficient reach to keep up with an extended customer base. Other partners hold expertise in specific industries or vertical markets like healthcare.
Channel VARs are mostly responsive and flexible to the latest advanced technologies, enabling small to medium-sized businesses to market their product and services faster and better.
The primary benefit of having Channel VARs is that it sells your solution to its current customer base to boost your sales significantly. They also tend to advertise your products and services faster.
It’s imperative to know that a service delivery partner will not help you resell any software or product. Its core function is to improve its value to the customers by ensuring services like installation, pre-sales consulting and managed services. In addition, they personalize the business solution to make sure it fits the unique needs of the end customers.
For instance, a service delivery partner can ensure the building and arranging of a patient management system to meet the needs of cosmetic clinics.
The key benefit of these services is that they uplift the overall appeal of your business’s products by lowering implementation challenges and boosting the relevance and value to a specified market. They also increase the rate of product absorption to the customers, boost future sales, and enhance end-user satisfaction.
These partners bring technology to the table that appreciates the solution offered by your business. Like service delivery partners, this partnership also avoids reselling. Instead, it integrates two products to provide a single solution.
For instance, if you’re selling software for X-ray devices, you can decide to collaborate with a company that produces and sells the X-ray machines themselves. With an alliance partnership, you’ll enjoy enhanced technology by including software, features, or accessories that give a competitive edge.
The main benefit of this partnership is that your business and its technology will leverage the collaboration with a reliable partner, and the technology will surpass a new market horizon. In addition, your business will also enjoy enhanced visibility due to co-marketing activities.
These partners can help your enterprise handle the contractual and administrative obstacles of selling your products and solutions at scale. Although they don’t add any value with personalized services, they take care of your order fulfillment needs at a reasonable rate to manage a high volume of transactions.
Thus, a fulfillment partner can help your business significantly boost sales at low administrative costs. The best fulfillment partner can also help your organization sell products and services to a hard-to-access and reach the market via existing government contracts.
Although these partners won’t resell any of your products, they offer a few elements of cloud computing like PaaS, SaaS, or IaaS. In addition, they host your solution in the cloud to enhance flexibility, security, and speed. Some examples are Google Cloud Services (GCS), Microsoft Azure, and Amazon Web Services.
Also, you’ll find BICs or “Born in the Cloud” providers that offer solutions from one of these cloud providers, enabling end-users to enjoy enhanced solution elasticity and flexibility while untangling the categorization and stationing of those services.
If you’re an IT company, hiring a cloud service provider will help you deliver a reliable and effective solution to the user in a streamlined way with its off-premise hosting feature.
These partners ensure remote management of end-user systems and IT infrastructure.
They typically provide such services under a flexible subscription model and proactively. As a result, these MSPs ensure ongoing benefits to your business by significantly reducing the load on the end user continuously.
An MSP alleviates the administrative and technical resources needed by the end user to enhance your software solution and make it more appealing to a significant number of end users.
GSIs are involved in developing computing systems by integrating software, hardware, storage, and networking products from different vendors. These channel partners develop large, intricate, multi-vendor solutions for big companies.
The key benefit of hiring such a channel partner is that when other channel resellers help you sell products and solutions to SMEs, system integrators help your business reach and sell to the profit-making enterprise market.
A white-label partner or an embedded partner fixes and embeds your solution to sell it to the end customers under their brand name. Enabling other brands to “white-label” and sell your products is an effective way to boost sales for businesses focused on growth and expansion with a low cost of sales.
OEMs or Original Equipment Manufacturers submerge your products into their solutions to ultimately sell them to customers. OEMs use their brand name to sell integrated embedded solutions like white label partners.
One of the key benefits of using OEM partnerships is that they enable businesses to explore new market horizons for their unique applications and products.
You may find strategic partners to be covered under one of the many categories mentioned above, but what makes them unique is their capability to bring in revenue and offer value that assists your business strategy. They may be ideal for playing the role of multiple partner types, and the role may evolve and get better with your evolving business goals.
For instance, a fulfillment partner can help your business expand nationwide. It can also offer managed services to boost your customer’s lifetime value. So, you must be open-minded and consider every partner to be potential enough to fulfill the organization’s strategic goals.
Finding the right channel partners is crucial for expanding your market reach and driving growth. Here's a step-by-step approach to help you identify the ideal partners:
Collaborating with one or more channel partners can be highly effective in boosting your business growth and expansion. However, things can become costly and hectic when you get involved with too many. Thus, your goal should be to hire a strategic channel partner that takes care of all your business needs, like Invensis. If you’re only starting to utilize a channel, Invensis can be the best choice, as turning up to different routes to the market can be burdensome.
At Invensis, we spend time with the clients to align with their needs and technology. Our experts always appreciate the technology brought forward by the clients, embrace it, and utilize it for their business scaling and expansion. We understand the need for infrastructure development and IT management and happily associate with clients to cater to those needs for a step forward to growth and success. So, let Invensis be your comprehensive channel partner solution to scale your business.
1. Why do businesses need channel partners?
Businesses need the best channel partners to leverage their adequate market knowledge, sales expertise, distribution channels, and customer relationships to sell their products, services, or solutions successfully.
2. What exactly do you mean by a channel partner strategy?
A channel partner strategy is a highly effective solution to sales and marketing that leverages third-party partners for marketing their products and solutions.
3. How do channel partners get paid?
Channel partners are organizations or agencies that control any business’s selling services. For this, the channel partners get a predetermined fee or commission.
4. What makes Invensis your great channel partner solution?
Invensis is a one-stop destination for businesses to provide comprehensive hardware, software, and service solutions to help them climb the ladder of success.
5. Why does Invensis stand out as a successful channel partner solution?
Invensis stands out as a successful channel partner solution as it ensures:
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Ryan is a seasoned professional in the back office arena, bringing extensive knowledge and expertise to the table. With years of experience, he effortlessly manages the intricacies of back office operations. Ryan's proficiency spans diverse industries, consistently providing valuable insights and efficient solutions. He excels in streamlining processes, promoting seamless collaboration, and optimizing productivity. As a prominent writer in the back office domain, Ryan delivers concise and practical advice, empowering businesses to thrive efficiently.
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