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So you’ve chosen IT distribution as a path to scale your channel reseller program. It’s a big decision and one that could deliver significant growth for your company. But all IT distributors are not created equally.
The value of a proper IT distribution partnership cannot be understated, and you need to raise your expectations on what an IT distributor can deliver to your business. Choosing the right IT distributor to support your business should be an important decision that you consider carefully.
If leveraged properly, this partnership can open new doors for you, become an extension of your team, and even provide robust financial support to you – and your resellers.
By the way, I have extensive experience on this topic. Click here to schedule a free Strategy Session with me.
There’s a lot of choice out there. So what should you focus on when making this important decision?
What’s important in an IT Distributor?
I call them the 5 P’s. Here are 5 important criteria when considering a partnership with a new IT distributor:
- Portfolio
- People
- Partner Focus
- Programs
- Platform
- Price – BONUS “P” at no charge
The Top 5 Things to Consider When Choosing an IT Distributor
The top 5 things to consider when choosing a new IT distributor are:
1. Portfolio
What products and services does the IT distributor sell? Not just today, but in the near future as well? Ideally you choose an IT distributor that has experience in your particular technology space. Also consider which of your competitors are also sold by this distributor. Sometimes you want to ride shotgun beside your top competitor(s) to capitalize on each other’s momentum. And sometimes choosing a distributor that is TOO focused on your competitors means they won’t prioritize you.
Managing multiple distribution relationships adds a burden to your team. Research the solution portfolio and ensure they can handle all – or at least most – of your needs.
2. People
Every distributor will tell you their people are great. But obviously some teams are better than others. If you have personal relationships with some of the employees, that’s a bonus. If you don’t, ask colleagues of yours that know these people and can vouch for their competence and professionalism.
And don’t be afraid to interview the employees. Get some questions prepared, and ask them, taking notes on their responses. You need to gain trust with the people that will be supporting your business. Make the effort to get to know them.
3. Partner Focus
What is their partner support strategy? This is different than their sales strategy. It’s one thing to get a new reseller onboard, but how will they support them over time?
Some distributors have “Customer Success” programs. Take the time to investigate and make sure they have a methodical, thorough approach to supporting their resellers long-term.
4. Programs
What programs do they have in place to support your business? Programs can be vendor-specific things – for example, Microsoft, Cisco, Lenovo, and AWS all have specific programs in place with distributors to support their partners. What program will this distributor have in place for your solution, and what can you do to help them build this?
Another example of a program can be financing. As your business scales, your financial needs will become more sophisticated. What experience does the IT distributor have in offering customized programs to tech vendors to help them grow (e.g. creative payment terms)?
5. Platform
This one is critical. Automation should be a top priority for you. Partnering with a distributor that has a robust and highly automated digital marketplace is critical to your ability to scale your business.
Automation brings efficiency and cost savings. Not to mention your customers and resellers will demand it. Having a fully automated procurement process that is completely integrated from end to end is a huge competitive advantage.
As a bonus, your IT distributor may have the capability of leveraging their marketplace as a white-label, customer-facing marketplace for your resellers, where their customers can order directly in a self-service fashion.
Do your research. Make sure that your IT distributor can deliver all of the automation that your business needs for the future.
6. Price (Bonus P provided at no charge!)
Of course. The pricing has to be competitive. The IT distributor has to offer an attractive margin opportunity to recruit and support resellers. But I left this point until the end on purpose. Trust the IT distributor to offer a fair price and margin to their reseller channel.
Conclusion
Don’t underestimate the importance of selecting the right IT distributor to support your business. It can make a world of difference, so take the time and get the decision right.
Find out the 1 Hard Lesson Every Tech Company With a Channel Program Needs to Learn here.
