In Episode 8 of the Revenue Execution Podcast Series I am joined by Larry Walsh, CEO of the 2112 Group. Larry is an industry luminary and has spent his career advising organizations on how to transform their channels into revenue engines.
In this episode we discuss:
- The need for vendors to push their channels out of the transactional mentality and into higher level application and services sales
- Vendors will double down on next-gen partners and de-emphasize laggards
- The long-tail of your partner organization is more expensive than most vendors realize
Larry and I started with a discussion around something Larry said recently “Vendors Will Push Partners to Stretch Beyond Their Product/Services Comfort Zones.” After starting with that statement we discussed some of the underlying fundamentals of why Larry believes this. For example, 90% of channel partners offer cloud computing services and it accounts for 21% of revenues. Even with that level of maturity Larry believes that partners are still transactional and they treat services as transaction. In essence they are focusing on commodity offerings and not the higher level applications and services where their expertise differentiates them.
As we continued the topic of channel partnership strategies we discussed how vendors will start prioritizing their channel partners. They will double down on next gen partners and de-emphasize the laggards. Regarding laggards, Larry stated that vendors need to take a firm stance by investing in their best partners and reducing investment in the bottom tier of their partner organizations.
We close our discussion with Larry’s view that focusing on your long-tail partners can be expensive and vendors need to monitor this closely when investing.
Larry went into great detail on these three strategies and has some excellent insights on how sales leaders should approach their partners.
Listen to episode 8 here.