Magazine Article | July 18, 2017

Defining "Channel" For Software Companies

Source: Software Executive magazine

By Dan Chandre, SVP of Strategic Partnerships, Booker Software

Is an indirect sales strategy a fit?

Building a direct sales force is expensive. Driving top-of-funnel leads is expensive and challenging. The answer? Go indirect and embrace the channel. Unfortunately, it’s just not that simple.

Channel strategies are evolving. At least I like to think that channel strategies are evolving. The problem is that software has evolved, but the concept of channel sales has straddled the old software world and the new world of SaaS software. After all, channel sales were born when software was on-premises, installed server-based software that required a tremendous amount of customization and implementation complexity. Resellers earned commission by adding value around this complexity, hence the term value-added reseller (VAR). In comes multitenant, SaaS-based software designed to remove much of the cost and complexity that installed software used to represent. So how, then, do we embrace the long-held efficiencies touted by the reseller channel and work within the world of efficient, low-cost SaaS offerings?

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