Key takeaways
- A channel partner reaches customers on a vendor's behalf and is paid through margin, fees or a better offer of its own.
- Resellers hold the contract; referral partners only make the introduction.
- Value added resellers and managed service providers wrap the product in their own services.
- Partners expect margin, protection for their deals and real support from the vendor.
Types of channel partners
Channel partners differ mainly in how much of the sale and the service they take on. Some only point a customer your way; others buy your product, add their own work and support the customer for years.
- Reseller: buys from the vendor and sells to the customer at a margin, under its own contract.
- Value added reseller: resells the product together with its own set-up, training or consulting.
- Managed service provider: runs the product for the customer as part of an ongoing service.
- Referral partner or affiliate: introduces customers and earns a fee when they buy.
- Technology partner: builds a connection between its product and yours and recommends the pair.
- Systems integrator or consultancy: designs and delivers projects that include your product.
Reseller vs referral partner
A reseller owns the sale and the contract, while a referral partner only makes the introduction. With a reseller, the customer buys from the partner and may never sign anything with the vendor; with a referral partner, the vendor runs the sale and the partner is paid for the lead.
The choice changes the work for both sides. Resellers need deeper training, pricing they can mark up and support for their own customers. Referral partners need a simple way to pass an introduction and confidence that the vendor will treat their contact well.
What a channel partner expects from a vendor
A channel partner expects to earn more with your product than without it, and to be protected while it does. Margin or fees matter, but so does the time it takes them to sell: a product that is hard to explain costs a partner more than it pays.
- A clear, fair margin or referral fee, paid on time.
- Deal registration, so the vendor's own sellers do not take the customer.
- Training and material they can use under their own name.
- A named contact who answers questions and helps with large deals.
- A product that makes the partner's own offer stronger.
How a channel partner programme is structured
A channel partner programme is the set of rules, tiers and benefits under which a vendor works with all its partners. It usually defines who can join, what each tier must sell or certify, what discount or fee each tier earns and what support comes with it.
Good programmes stay simple at the start. Two tiers, one agreement and a short onboarding are enough until partners are selling; extra tiers and portals help only once there is volume to manage.
How to find and choose channel partners
The best channel partners already serve the customers you want and have a reason to add your product. Look for companies whose clients match your ideal customer profile, whose services fit around your product and who have the people to sell and support it.
Check a candidate the way you would check a customer: read its website, its case pages and its team, and talk to the person who would own the partnership before you sign anything.
Where Pebbles Ai fits
- CapabilityProspecting & customer recordsAsk an assistant for companies that could become partners, by industry, headcount and headquarters location; company search returns up to 50 matches per search.
- CapabilityResearch & analysisAn assistant can read a candidate partner's public pages, such as its services, clients and team pages, and summarise what it finds with numbered citations you can check.
Common questions
Is a distributor a channel partner?
Yes. A distributor buys from the vendor and supplies resellers or end customers, usually across a region. It is common for hardware and less so for software sold online.
Is a technology partner a channel partner?
Often it is. A technology partner whose product connects to yours may recommend you to its customers, which makes it a source of sales even when no money changes hands.
Do channel partners own the customer relationship?
It depends on the type. A reseller or managed service provider usually holds the day-to-day relationship, while a referral partner hands the customer to the vendor after the introduction.
About this page. Written by the Pebbles Ai team for people who run sales, marketing and growth. Last updated .
