Resellers have the reach into the customers. That makes a reseller valuable to you. To build a profitable relationship, you want to make yourself valuable to them.
Understand that resellers today are under tremendous economic pressure – their customers insist on the lowest possible prices, keeping margins razor thin. (The first thing a customer will do is check the price on Amazon or CDW.) A rule of thumb is that a reseller needs to have services comprise 30% of their revenues, or they’ll be out of business within 3 years.
When recruiting a reseller, describe how your product will augment the products that they’re carrying. Create that value proposition aimed towards the reseller, and then create one aimed towards their customer. How will adding your product to their line card augment sales of products they already carry? How will it be an easy upsell to their installed base of customers? If your product provides a service component that ties in with the other products they sell, that will be a strength and reason for them to add your product to their line. If their technical staff can use existing skills and knowledge with your product, that will also be helpful.
To enable your resellers, do you have sales training that they can access online? Provide sales materials that their reps can get to on their phone as they’re walking into a customer meeting, or as they’re calling a customer. Is the technical training online, and easily watchable in 20 minute chunks?
Work with the resellers reps and create a value proposition that they can use with their customers. It may vary from your corporate value proposition, based on the customers your reseller works with. It’s best to keep the communication in plain language – address the customer’s pain points and the solution provided without acronyms, if possible. Avoid marketing jargon as well! Even the term ‘value proposition’ is marketing jargon.
Putting yourself in their shoes, so to speak, understanding how they do business every day, and how they approach their customers will pay off for you in a solid relationship with your reseller partner.