Questions To Consider
1. The first thing the reseller needs to assess is the vendor's channel program, which should be channel-neutral. In other words, the benefits and value a customer receives purchasing from a reseller should be the same as the benefits and value a customer receives buying direct from the vendor.
2. The next question is whether the products and solutions are viable for the reseller's customers. Is this product going to have demand? Is it a solution that can be delivered with value so there is a reason for the customer to work with the reseller rather than buying it direct?
3. What is the return-on-investment associated with making the decision to go with this vendor? Will the costs that you incur to support the product line or vendor be justified by the amount of projected sales and profit you can make on the product?
4. What is the channel strategy? If it's two-tiered distribution, are distributors able to offer proper support so they can deliver to their resellers what they has committed to their customers? If you will be dealing directly with the vendor, does the vendor have the technical support and customer-service infrastructure to support its resellers?
5. Finally, assess the vendor for the future. How much is the vendor investing in R and D on its technologies? Historically, how often does the vendor update its technologies? How often does it come out with new products? Don't just look at today--look at tomorrow.