10 Reasons why you should not rely on OEM partner channel?
“Mag’ let’s leech on and use our OEM sales channel to scale our business from $20M to $50M.”
Many TechCEOs have this wish of building their business on top of their OEM channel and relationship. It could be on top of AWS, Microsoft, Oracle, VMware or Google channel. Nothing wrong with that idea. Just that you have not built a solid revenue acceleration capability within your organisation.
Here are top 10 reasons why you should consider building demand generation capability within your organisation?
- OEM channel relationship built with people working there is not permanent. People (sellers) change jobs and you will have to start all over again.
- Your alliance/channel manager can also change jobs.
- OEM sellers target big deals (usually long sales cycle) in named accounts. Onus is on the partner to work hard and make it happen. If the deal does not convert you are at a loss.
- Relying on OEM channel works well in growth markets. When more partners hop in it becomes that much difficult to rely on OEMs for leads. You have to perform.
- In a crowded market, customers usually want to work with a partner who has a differentiated offering and has a compelling value proposition. You can create this only when you initiate conversations and engage differently from day one.
- Selling ‘beach head‘ quick win offering can help you execute ‘Land & Expand’ strategy to enter named accounts. Your OEM sellers might not be interested in that.
- If you comply to OEM sales behaviour you might have to compromise on your service margins. You might end up re-selling licenses with 7%-8% margins and not grow your service business and margins.
- Having your own selling engine will help you control your (revenue) destiny. You control client engagement, positioning your solution, pricing and customer success follow through.
- You can smartly structure a hybrid strategy that includes inbound leads from OEM channel and integrate it with your own selling engine. This way you qualify deals better, control your revenue forecast and have slack to fill holes in your revenue budget.
- Finally, having a solid selling engine will increase your valuation multiples. It can get you 30% more when you exit the business. Don’t you want that?
We work with TechCEOs to structure a GTM that helps them hit targets and increase their valuation too. In 2020, let’s work smart to accelerate revenues and build selling capability within our organisation.
P.S. Whenever you’re ready… here are 3 ways I can help you grow your tech business:
1. Grab a free copy of useful stuff that can help you grow your tech business. More in our blog.
- 4 Ways to Position Your Tech Business to Attract More Clients Click here.
- 3 Mistakes to Avoid In Your Tech Business To Grow Revenue Click here.
- Do TechCEOs Get ROI from Marketing Click here.
- Should Tech firms consider Re-Branding to Drive New Demand – Click here.
2. Schedule a 15 Minute assessment call with us – Click here.
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