What is a partnership?
In the channel world, a partnership refers to a collaborative business relationship between two or more organizations, where one organization (the manufacturer, vendor, or supplier) collaborates with another to promote, service, support, or sell its products or services. These channel partners can take various forms, such as distributors, resellers, retailers, value-added resellers (VARs), system integrators, and more.
Partnerships are an incredible driver of business today, and how they look can vary on your industry, customers, and more. Some examples can help illustrate this:
- If you’re a SaaS company, you might have partnerships with managed service providers (MSPs) who manage and deliver your software solutions to their customers as a service.
- If you manufacture cybersecurity hardware, you could partner with a value-added reseller (VAR) who combines your product with their expert installation and support services to offer a comprehensive solution to customers.
- As a semiconductor manufacturer, you might establish partnerships with distributors who can supply your products to a large network of resellers, increasing your product’s availability across a wide area.
- If you’re with a nutrition company, you might have partnerships with influencers who refer people back to your website to buy your products.
Channel partnerships are crucial for companies who are ready to expand their market presence, access new customer segments, and more efficiently distribute their offerings. Successful partnerships require clear communication, mutual trust, and a shared commitment to achieving common goals.
Great partnerships are also built on win-win growth. Together, both parties should be able to generate more sales and grow faster.