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40% Direct – Everything You Need To Know Today

Have you ever heard of a channel vendor that is 40% direct and 60% channel? Do you even have any idea what a vendor means when saying this? The truth is, some vendors would claim that they are a combination of direct and channel type. So, you can just imagine what kind of confusion this may give to some people in the industry.


What 40% Direct Really Means


There is obviously a conflict when a vendor would claim that they are both direct and channel vendors. So, how exactly do you do that? One of the security vendors shared today that they do it with Deal Registration. On top of that, he stated cost efficiency as one of the reasons. According to him, selling direct to the client is much cheaper for them, the end-user.


Although the same security vendor representative only wanted to be of help, it doesn’t change things. The vendor may not have any deceit in mind when he said that but some partners may react. For instance, there is no projection of profits when you are dealing with a direct sales team. There is a conflict between the vendor and the partner in this area.


Serious Red Flag Detected


Some MSP partners do not take it lightly when they see vendors that have their own direct sales team. That’s because it may only be beneficial for the vendor and not the partner. Forging a strong vendor-partner relationship starts with doing something that’s mutually beneficial. However, if vendors are both direct and channel, then the partner is eventually left out.


MSP upper management may eventually have a change of heart and alter their future plans. They may start looking for a new vendor instead of sticking with you because of this. Consequently, it is a serious red flag because you are taking your partner out of the equation.


When Vendors Call Clients Directly


Every MSP company has its own sales channel or team but what happens if vendors have theirs as well? Don’t you think the conflict will arise? Although some partners don’t complain about direct-sale vendors, some are vocal with their dislike. For instance, vendors calling the client directly may be unethical if they access the partner’s database without consent.


Instead of direct selling to clients, why not get your MSP partner involved, moving them to your channel? Channel-only vendors are more likable because they show dedication to the channel instead of the client sale. Make your partner feel that they are part of the team by not bypassing them. The vendor’s commitment to the channel inspires more MSPs to be more involved.


MSPs like it when vendors are honest and transparent to them, which strengthens their partnership. However, being 40% direct and 60% channel will not cut it. Never call the client directly and leave your partner out. Ask your MSP to create a partner program with you instead. In most cases, this case of directly dealing with clients is what vendors do that makes partners crazy.

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