It's not WHO you know, it's HOW you do it!

When I first started to hire enterprise sales people for our North American sales team, the advice from recruiters and other Execs was very similar, “Hire lone wolves with an impressive rolodex”. Much of the time I took this advice and the lone wolves would start off at a significant pace often hitting target in the first quarter. At the same time I would be hiring inside sales people who would join and be trained and integrated into a strict program. While at Proofpoint I was introduced to one of the most process-driven people I have ever had the pleasure to work with. Jim would sheep dip any new inside sales starter and then sharpen and hone the skills they had to within an inch of their lives while also identifying where they needed help and support. I have used my version of this structure ever since and continue to be amazed that not every business does the same.

I found the problems would normally start at the end of the first year, when the rolodex that the lone wolves had brought to the business, and the personal contacts they dined out on, would begin to dry up. This did not happen every time, as the very best Enterprise sales person will always be growing contacts and connections, but still it struck me that I needed to rethink my strategy. Using Jim’s methods for managing and building the inside sales team would never run out of opportunities or new contacts to connect with, constantly filling the funnel and growing the pipeline daily.

In Direct Sales, the numbers don’t lie or at least rarely. However, the same cannot be said of Channels. Channel sales can seem like a numbers game but this is a critical mistake to make.

Anecdote time… Last year I was working with a mid tier IT vendor who sold 100% via channel partners. They had almost 4000 partners globally with 99% of their revenue coming from just 42 partners; that’s 1%!

The Head of Channel was asked: “How are you going to grow revenue in 2014?”

The answer? “Increase the number of contributing partners by doubling the partner base from 4,000 to 8,000.”

Imagine the time and cost it would take to find and contract with 4,000 new partners!

This is an extreme example of a dysfunctional channel model. However, with a minor amount of adaptation this could have been transformed faster and more efficiently while also increasing the chance of success 100 fold!

Most large vendors will need to apply a degree of standardisation to channel programs and individual partner relationships. The key to ensuring success and scalable success for that matter, is in the hiring of dedicated Channel sales staff. This is a difficult task as in my experience very few “lone wolf” Channel sales people are out there. You will find many relationship focused Channel managers who believe that the road to success is through infinite alcohol-fuelled weekends away and a constant supply of Pizza on the sales floor. This model perhaps works when you have a handful of partners but doesn’t scale, is difficult to model and certainly doesn’t help anyone to forecast.

There is a more functional model!

It involves having well-liked, well-respected Channel sales people who focus on a defined program, adhering to the rules without constantly trying to break them. These people will be able to manage 5 or even 10 times the number of partners, and often much more effectively, than the lone wolf.

When we review data around regularity of contact and communication, it is very clear which model is used across partners with a higher overall level of satisfaction.

Both the process-driven sales person and the lone wolves have their roles to play. Early stage companies looking for the “impossible win” are best served by the go-get-it attitude and historic relationships of the wolf. However, businesses looking to for a mature Go-to-Market model, a scalable solution with predictable results need an operationally sound plan and focused, structured, professional players to make it happen.

To be a successful sales organisation, you need to apply a degree of standardisation to channel programs and direct sales processes. If you can create a great partner program, and find and build solid talent you will then watch your effective partner numbers rise , your close ratio will build and your revenue will soar but only if you are supporting that with an equally effective direct sales model.