Channel marketing teams can build partnerships that can significantly boost revenue. But only if given proper backing from the companies.

This is Growth Blocker #7 that Eric Rudolf and I identified in our conversation on the 10 most common blockers preventing tech businesses from scaling from $1M to $10M in revenue.  

It is a common blind spot for tech companies. A single channel executive or channel team are often lone warriors, putting in the effort but without support from the rest of the organization.

“The time and money that firms spend building and rebuilding channel efforts is significant,” Eric explains. “But once they are in place, accelerating them all of a sudden becomes secondary because most firms are too caught up chasing the end of the quarter to probably support a channel effort that takes 12 to 18 months to produce a deal.” 

“Many tech companies operate in a quarter-to-quarter cycle that prioritizes short-term results – ‘a cadence of quarterly panic,’ which can be at odds with channel efforts, which often require a longer-term investment to build relationships and generate sales,” he says.

Channel partnerships can offer a powerful path to sales multiplication. However, many companies struggle to fully leverage this potential due to a lack of support for their channel champions.

Channel managers often contend with:

• Lack of internal buy-in: Their colleagues don’t see the value of channel partnerships.
• Limited sales and marketing support: They don’t get the same level of resources as the internal sales team.
• No long-term perspective: Management is focused on short-term gains, neglecting the time it takes to nurture channel relationships.

This lack of support can be costly. You’re basically wasting the time and money invested in building the channel initially. And more importantly, you’re missing out on potential growth opportunities.

Channel partners can be a force multiplier for your sales, reaching new markets and customers you couldn’t reach on your own.

Here’s how to break the cycle:

• Align your entire organization: Get everyone on board with the value of channel partnerships.
• Empower your channel manager: Provide them with the resources they need to succeed, including sales coaching and marketing materials.
• Embrace the long game: Understand that building a successful channel takes time and investment.

By prioritizing channel support, you’re not just helping your partners – you’re opening up a significant source of growth for your company.