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AppViewX's New Channel Leader On Power Shift From Vendors To Partners And Solving The Common Mistakes In Channel Programs

AppViewX's new channel leader Keith McManigal talks to CRN about the power shift underway between vendors and their channel partners, as well as fixing the profitability issues with partner programs.

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What's one glaring issue you have with a typical vendor's channel approach that hurts partner profitability?

We've done some analysis on partner margins and its eye-opening on how partners are paid versus how vendors are paid. Vendors are typically paid on revenue; partners are paid on margin.

If we look at how partners get paid and make money, it's not about the top line revenue of the opportunity, it's about the margin of the deal. A lot of vendors will go, 'Alright, we'll just take $10,000 off – hey partners, take $10,000 off [your deal].' Well that's $10,000 of profit taken out of the partner's pocket, which is a big deal.

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