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July 12, 2006
Channel Sales – Where the Simplicity of a Toaster Rules
by Sridhar Ramanathan
One of my clients sent me a nice article as an example of my mantra on simplicity when it comes to channel sales. Checkout this article “Barracuda Keeps Programs to a Minimum—and Keeps Partners Active.” And for your information, Barracuda sells firewall appliances for spam, spyware, and instant messaging. Several key points to highlight as best practices here (still valid even if reality falls short of what this press release promises):
- Product simplicity –note how “appliances” (in theory the high tech equivalent of a toaster) are often well suited to the channel because they are very well defined, “shrink-wrapped” products that don’t require a ton of explanation and long sales cycles.
- Killer demo – Barracuda understands that VARs are motivated by quick sales and high margins. And a killer demo in which 98% convert to purchase orders is a fantastic measure for speed and effectiveness. See our article on powerful demos.
- Reward renewals – You’ve seen my rants on marketers not focusing enough on customer retention. Barracuda rewards their channel partner for renewals and services. Very smart.
I’ll be giving a talk at the October meeting of the Silicon Valley Product Management Association on the topic of making products that are “channel-friendly.” It all comes down to simplicity.
Posted July 12, 2006 | Permalink
Posted to Channel Management