Channel Partners

A channel partner is a company that partners up with a manufacturer, producer, or vendor to sell its products or services to the market. This is usually performed through co-branding relationships whereby the channel partner remains an independent company despite selling the manufacturer’s products or services. Channel partners may also sell products and services produced by other vendors at the same time, as well as items they develop themselves.

There are many different types of channel partners but one of the most common examples can be found in the automotive industry. Here, original equipment manufacturers (OEMs) build certain specialist parts that are then sold to automakers who include them as part of their vehicle models.

Channel Partner Strategy Explained:

Sales Script FAQs

What are channel partners?

Channel partners are third-party entities such as distributors, resellers, or consultants that collaborate with a brand, usually to sell its products or services to end customers.

Why do brands enter into channel partnerships?

Channel partnerships typically arise out of some form of quid pro quo where Brand A provides a favor or advantage in return for something from Brand B. The benefits of a channel partnership arrangement can include extended market reach, access to specialized expertise or markets, reduced sales and distribution costs, and increased scalability.

What factors should be considered when selecting a channel partner?

This depends entirely on your brand’s model but generally speaking, consideration should be given to factors including the partner’s Alignment with your brand’s objectives, reputation and reliability, growth potential, and financial stability.