Author: Hans Peter Bech / Source: Medium Most potential information technology channel partners will initially be attracted to you becaus
Most potential information technology channel partners will initially be attracted to you because of the features and functions that your product provides (most information technology channel partner are product focused). However, the single formula that will help you help your partners become successful is understanding and working actively with “The channel partner Profit & Loss Statement (P&L).”
When discussing a potential cooperation with a new channel partner you can use the P&L to relate the investments required for getting started with the cost and revenue streams that can be expected for the coming 3–5 years.
New business requires investments
Adding a new product to a current business always requires investments (planning, business management, additional staff, training, marketing, pre-sales, sales, facilities etc.), which are returned as customers start buying and using the products and services. If you leave reviewing this investment scenario to your channel partners it is very likely that they will keep the investments at a very low level (maybe at zero) as they primarily focus on the very short term cash…
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