Three Marks Of A Top Vendor

It's somewhat elusive to vendors: How to craft the perfect channel program. MarketStar's presentation at XChange '08 Tuesday morning was geared toward educating vendors, but solution providers could benefit from the information as well: VARs can vet vendors based on their channel programs just as easily as vendors can vet VARs. Following are three clues to how seriously a vendor takes its channel program.

1. Vendors with top programs are selective about which solution providers are a part of their channel programs. They are choosy, which might initially strike VARs as troublesome, but in the end it creates a smaller, more manageable community. Panasonic Computer Product's VP of Channel Sales Sheila O'Neill notes that there are only 300 or so VARs for their Toughbook line of products.

2. Look at how the vendor manages MDF. Is there a rhyme or reason to the approach? How exactly does a VAR earn MDF, and does the vendor follow up? Properly used MDF creates demand for the product; thoughtlessly used MDF is a waste of money for the vendor " and it won't take long for that to be noticed by even the most lackadaisical management " which results in the cancellation of programs. Look for vendors that have marketing specialists that coordinate the marketing efforts among VARs, distributors and vendors. They'll also assist in developing co-branded marketing plans. Vendors that track MDF utilization often have higher ROI than those who do not.

3. Investigate whether the vendor uses Geographic information systems (GIS) to assist in analyzing sales data. When that information is plotted, special patterns become apparent. Relationships, patterns and trends are revealed in the form of maps, globes, reports and charts. That way, vendors can keep tabs on sales cannibalization of a region. Further, by eliminating channel partners who do not contribute to a regions growth, vendors can maximize the productive VARs' sales potential and increase their revenue.

Revenue potential is among the most important characteristics VARs should consider when evaluating a vendor. Each of the above play an important role in increasing VARs' bottom-lines. The right vendor program provides a solid foundation on top of which VARs can build viable businesses.