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7月28日 Running the numbers: How channel marketing reaps MASSIVE rewards if you get it right.I want to prove a point about the power of good channel marketing, so let's just say you sell a software product for $2,000 to small and mid-sized businesses. This is a gross oversimplification of an ROI, but just to make a point.
Scenario 1: You go it alone.
You have a staff of 10 people.
3 of them are FT sales.
You promote the product on the web and to regional business with your 3 highly efficient (and traveling) salespeople.
You set up demos with 50 new prospects a month resulting from your web downloads, mailings, call-downs and some tradeshows
Optimistically speaking, you close 60% of those each month.
Annual Sales Revenue: $720,000
Scenario 2: You have a channel of capable experts
You've trained these folks on how the software works, how to sell, install and support it.
Now you have 10 technical providers (a channel) who can close more of your leads, but they still rely on leads from you.
Now, you're able to speed up your sales cycle and close, say 70% of those leads and through word of mouth, those providers are able to generate 10% growth each year.
Annual Sales Revenue: $924,000 (we have liftoff, but wait...) Scenario 3: You get your channel to take on lead-generating activities
Whether you dedicate resources such as templates, joint marketing funding or ready-made marketing camapaigns and support, you give enable them to easily build their own marketing and bring in new business.
They've already been trained sell, install and support it but if each of your providers reaches out to just 10 prospects each month and closes half of those, here's what your new revenue looks like:
Annual Sales Revenue: $2,124,000! (Magical)
And, in Scenario 3, you don't have the cost of sales people and T&E. Most of your marketing enablement investment is done by selecting co-marketing for your high performing partners and the rest is through web resources so your investment is less than a sales person).
Makes sense to foster a channel doesn't i?
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