Making Money Monday: To channel or not to channel

Managers and owners of early-stage companies are often tempted to adopt a channel program versus having a sales team, thinking it will generate sales quickly without staffing headaches. However, it’s not always a silver bullet. I firmly believe company founders and in-house staff need to do the initial selling themselves.

When you let someone else run the sales of your product, you risk losing control of the sales cycle, your reputation and your revenue flow. Also, a channel will never be as passionate about your product as you are. They’re looking for the easy win and will give up on tougher prospects early, prolonging the sales cycle while potential sales are walking out the door.

When you’re new, your company’s reputation is extremely fragile. By staying in control, you can iron out bugs when they happen, and can develop deeper relationships with your customers. A channel can be a lucrative sales tool, but only when it is used to enhance rather than replace a direct sales team.

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