Charting Channel Partners’ Paths to Profitability for 2014

Path to profits

1 - Profitability PrioritiesProfitability Priorities

As usual, almost a third of channel partners intend to hire more technical and sales people. But, surprisingly, 30% plan to invest in more marketing and offer higher-margin services.

2 - Keys to ProfitabilityKeys to Profitability

Quality products that don’t require a lot of support was rated No. 1 by 30%. Revenue and margin was a close second at 29%.

3 - Top Channel Partner Pain PointsTop Channel Partner Pain Points

More than half identify relationship issues such as channel conflict as a top pain point. Ease of doing business comes in second at 45%.

4 - Importance of Revenue and MarginImportance of Revenue and Margin

Well over half cite front-end margin as important while just under half cite overall revenue.

5 - Additional Revenue OpportunitiesAdditional Revenue Opportunities

Only 21% say vendors do a good job on back-end incentives, and 27% say they do well with special incentives.

6 - Services Pull-Through RateServices Pull-Through Rate

On average, the ratio of services to software revenue tends to be close to 3:1, while hardware services are about 2:1.

7 - Top Solution Provider RequirementsTop Solution Provider Requirements

43% cite pre-sales support from vendors, followed by incentives at 40%. Market development funds came in a distant fourth.

8 - Biggest Source of Partner RegretBiggest Source of Partner Regret

Conflict with vendors’ direct sales force leads, at 33%, followed by not enough margin, at 29%.

RELATED ARTICLES

Must Read