Have you recently come across the term “Channel marketing” and asked yourself, “What is channel marketing?”
Well, congratulations, you have found the right place to know all about what channel marketing is.
Some people think of Marketing Channels as a means to channel marketing. However, they have it all wrong;
A marketing channel is better known as a portal that many businesses use to promote their services or business.
The marketing channels include Social Media, Automated Email Marketing, Arranging Events, and Driving organic SEO on their website.
However, some people also do use Marketing channels to broaden their channel marketing efforts.
However, Channel Marketing happens to be an entire area of marketing as a whole.
Once you are through this read, you will learn the following things:
- What Is Channel Marketing?
- What Are the Common Types of Channel Marketing Partners?
- How to Choose Your Channel Marketing Partners
- What Is Your Channel Marketing Strategy?
So, let’s get going!
What is Channel Marketing?
Let’s discuss the heart of the matter first; What is channel marketing?
Think of channel marketing as the process of distributing a product or a service from beginning to end.
This whole process includes people, activities, and various organizations.
These Organizations send goods from manufacturers to the customers.
For a second, let’s think about breakfast cereal that you eat in the morning.
How did it end up in your bowl?
From the wheat fields, the farmers collected the grains.
- These wheat grains then go through grain dispensaries.
- After that, they go to the Cereal factory.
- After being manufactured, they go to a grocery distributor.
- You purchase it and then end up eating it.
In the process above, we can see that the product went through various partners to get it to the market and then to your bowl.
However, it gets into the bowl through a distributor (i.e., The Grocery Store) instead of the manufacturer directly selling it.
Now, Channel Marketing Partners help businesses sell the advantages of their products to their customers.
Channel partners in the channel marketing can be split into groups such as:
- Other types of third-party companies.
What is Channel Marketing? The Main Idea and Benefits of Channel Marketing:
However, the main idea to channel marketing is that it’s a mutually beneficial relationship between a business and its channel marketing partners.
Channel marketing is not the same as promoting a business’s product through advertising and various marketing channels.
Most of the time, Channel partners have a business of their own as well.
So, when someone talks abo0ut having multiple channel partners, they are implying that they have numerous separate companies selling the same kind of product.
Nonetheless, the critical benefit of Channel marketing is that the products manufactured by a business can reach audiences that a company could not have gained access to if not for channel marketing.
Furthermore, not only the business selling the products stands to gain from channel marketing.
The partners of the firm that helped them in channel marketing also benefit.
In most cases, a business will hand them over a percentage of product sales or a discount if they make bulk purchases.
The channel marketing partners later resell the purchased goods.
Think of Channel Marketing as a way for you and your partners to help each other achieve the same goal:
To help people and sell products.
If you lack the resources to do sales and marketing all by yourself, then choosing the right partners for channel marketing can do the trick.
Considering everything that we have mentioned in the passage above, we think it is relatively easy and wise to reach the conclusion that helps you truly understand what channel marketing is.
We hope you can also figure out the benefits that doing channel marketing can have for you and your business through all the information mentioned above.
What are the Common Types of Channel Marketing Partners?
You may have analyzed different types of channel marketing partners from the passage above, but you don’t know what they are for.
Having Channel marketing partners is essential if you want channel marketing to work.
Some common types of channel marketers are resellers, affiliates, and consultants.
A reseller is a person who creates their own prices and manages their own accounts.
Resellers get the benefit of using the business’s product, and they also gain the benefits that come from selling the product of the company to their own network.
Resellers can do the following things:
Here’s a fact: You may have come across a reseller without actually realizing that they are a Reseller!
Here are some kinds of typical resellers:
None Other Than Amazon:
Amazon itself is a kind of reseller.
The resellers on Amazon buy products in bulk, and then they sell these products on this platform by themselves.
Since they have the opportunity to control the price tags, they can pull off enormous benefits if sales go right.
Various Software Companies:
There are many software companies out there that let other businesses Whitelabel their products.
This scenario becomes a lot more probable if the business customizes the software before reselling the software or any effect to its clients.
Many mattress manufacturers offer white labeling. When you walk into a mattress store, you probably see many brands that are “unique” to the store.
This is so because these brands are usually white-labeled and have been introduced under a new name.
Partners who give you referrals via links to your website are known Affiliates.
A business will provide its affiliates a custom web link to share this link on their own websites, ads, and content.
Affiliates earn commissions based on how many times the traffic on the internet clicks on the link.
In most cases, Affiliates create content (i.e., Blogs and Article Writing) and Experts on the subject matter.
Affiliates can put your link into their blog content or web pages in a way that makes sense.
This is also a type of channel marketing.
This kind of channel marketing gains partners the benefit as they gain more visitors and own a commission.
They also start to get more traffic which generates more sales for their businesses.
Consultants usually work directly with the business’s customers.
A consultant helps a customer by guiding them about your service in the most impactful way.
Just like an affiliate, a consultant can also earn a commission in return for promoting your business.
Consultants can also contribute to the promotion of a business by:
- Being an expert resource to which a business can refer its customers.
How to Choose Your Channel Marketing Partners?
We are pretty sure that you’ve heard a phrase that goes, “I scratch your back, you scratch mine.”
Well, this is the very idea behind choosing your channel marketing partners.
However, you need to find channel marketing partners that you can trust to promote your business.
However, You will also have to ensure that they get what they need from you so that they also gain something for it, and it makes the whole thing worth their while.
Now, how to find out your business partner?
When it comes to choosing your channel marketing partners to promote your business or services, you must know the answer to these two questions:
- What Will they gain?
- What will you gain?
You should know why they must care about being your channel partner before they choose someone else.
A person wants to partner in a business that offers them the most opportunities for growth.
If you are stuck figuring out what’s in it for them, it could be:
- They gain discounts on your services.
However, as for yourself, choosing the right partner is so much more than generating sales.
Alongside sales, having good partners can help you bring:
- Good word-of-mouth.
Having said that, it is imperative for you to choose the right partner as it will decide how successful your marketing strategy is going to be.
If you choose the right Channel Partner, they are likely to increase your brand awareness and can generate newer revenue streams for your business.
Consider the following five factors when it comes to choosing partners:
- Employee Count.
- Annual Revenue.
- Product Ranging.
- Target Marketing Niche.
- Top of the Funnel Strategy and Marketing Expenditure.
What is Your Channel Marketing Strategy?
While there are many shenanigans that you can try, our proposed idea is that you keep it simple.
Keep it as simple as possible. Steer clear of any complications or any kinds of trick questions.
In conclusion, partners will not want to do a lot of hard work just to have a relationship with their business.
Furthermore, there are some things that you must also steer clear of.
There are some things that your partners are likely to require from you to ensure the maximum benefits to you and your business:
Between the two parties, you are going to be the primary subject matter expert.
Regardless of the Channel Marketer you use, the only way to make them promote your service in the best way possible is by telling them.
To Utilize your Partners in the best way, you need to do these things:
- Take your time and explain to them clearly why your service is worth their time.
- This will give them the ability to turn around and spread the same message for your product.
- After you explain to them why your project is worth their time, follow up by adding a CTA.
- Once you are done, Your partners will be able to take this CTA and customize it so that they can use it with possible prospects and customers.
If you gt involved actively and keep the process in the most straightforward way, you will be able to drive new business to your partners while they stay loyal to you.
However, make sure that you keep all of this simple.
If you end up throwing a lot of impersonal resources in front of them and then expect them to make something out of it, you are mistaken.
Many partners that you choose will need to be told that where they need to keep their focus.
Moreover, it is highly possible that a partner will not know how to manage multiple marketing activities simultaneously.
Here goes our guide on what is Channel marketing.
We have tried to be as elaborate as possible to help you fully understand what is channel marketing and how implementing it can be a worthwhile cause for you.
Try following the strategies mentioned and pay attention to the types of resellers so that you can choose the best one for you and your business.