2 Questions to Ask Before Ditching Your Channel

As a channel executive, how can you maintain existing levels of business and grow at scale? The question came to mind while at a session led by Larry Walsh of the 2112 Group at last week’s B2B Sales & Marketing Exchange conference. 

The discussion centered on a vendor in the subscription space that killed the channel as a response to a lack of focus on renewals and disinterest in spending high margins. The success of the strategy was mixed. While the company did see an increase in renewals, it also suffered a decline in the growth of new clients.

Managing renewals and motivating partners to focus on renewals is a challenge for a lot of vendors. Vendors that feel they can do the job better than partners are often quick to kill the channel and keep the margins for themselves. Before going down that path, Walsh recommends asking two questions:

  1. What are the full ramifications of killing off business accelerators?
  2. What scale does the channel offer that your company doesn’t have on its own?

Channel Marketing Journal will delve more into this topic in our next edition, when we’ll bring you ideas for growing renewals and tips for financing your business with a focus on increasing subscription revenue.