How To Pick A Great Partner

Several months ago we teamed up with IPED, the research and consulting arm of Everything Channel, to crack the code of how to rank vendors' partner programs. It was an enormous undertaking because of the complexity of today's partner programs and the sheer size and scope of the programs offered. However, with persistence, the IPED number-crunchers and some hard work, we not only cracked but shattered the code so we could present you with a way to judge the partner programs of comparable vendors--be they friends or foes. This methodology differs dramatically from our past efforts, which involved more editorial subjectivity and solution provider review of programs, yet it still provides a way for solution providers to compare the key attributes of partner programs and decide for themselves which ones deserve more attention or investment. We are assuming what caught your eye in the first place was a company's technology offering. But after the infatuation with that vendor's virtualization storage product wore off, you were saddled with thoughts of how to support its product, interact with its tech team or figure out its rebate strategy. That's why the tech offering of any vendor is just part of the story. Would you place a bet on a football team with a great offense but a lackluster defensive unit? The answer is no, unless you use counterfeit money. But the same principle holds true here. You need vendor partners that are well-rounded.

We examined six key metrics of tech vendors' programs, including sales support, marketing support, partner profitability, channel operations, communications and partner recruitment. Those are the gold standards of any company playing in the channel today, be it large, small or an emerging player. Responding to very specific questions in each of those categories, vendors shared critical and confidential information about their recruitment accomplishments, the profitability of their partners and the investments made in communications or support. After tabulating the answers, IPED was then able to weight the responses and determine how comparable vendors performed. That exercise helped us decide who would be awarded a silver star for each category based on a vendor's size and its product offering. A weighting was also applied to each vendor's overall performance to extract the best vendors in each category, who were then awarded gold five-star awards. In the end, we awarded some 64 gold stars and numerous silver stars for individual category performance. Any vendor that possesses the coveted gold five-star award is able to do any number of things well. Think of them as decathletes who can do many tasks with equal proficiency.

You are probably wondering, however, whether too many gold or silver stars were awarded. For insight into that, you have to consider how dedicated many of these vendors are to the channel along with their ability to take someone's partner program and modify it for their needs. The bottom line is that many channel executives do a good job in a few essential areas, and the really great ones execute well across the board. Look at it this way: As a longtime and avid reader of Consumer Reports magazine, I know that its testers often find good attributes in cars or washing machines that do not receive the highest overall rating. But you don't always need the best or the most expensive product; you need the one that fits the customer solution and is good enough to get the job done. In the end, we have produced a valuable tool to measure existing partnerships or determine which ones you may want to add to your portfolio.

Still, I must mention one caveat. Use this tool to help manage partner relationships but remember which one is the most important of all--the bond between you and your customer. As Phil O'Reilly, CEO of Solunet, states, "We date our partners, but we're married to our customers." Hopefully, our guide will help keep that marriage healthy and happy.

Robert C. DeMarzo (rdemarzo@everythingchannel.com) is senior vice president and editorial director of Everything Channel.