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Relayware Partner Relationship Management

Recruitment: the First Step in Beating the Pareto Principle

Posted on June 23, 2014 by Chris Bucholtz

The Pareto Principle is well known – perhaps by its alias, the “80/20” rule. It takes on various forms – 80 percent of your revenue comes from 20 percent of your customers, 80 percent of your effort is devoted to 20 percent of your clients, 80 percent of your sales come from 20 percent of your sales people, and on and on.

In the channel, the Pareto Principle hinges on partners: 20 percent of your partners account for 80 percent of your sales – if you’re lucky. Talk to any channel manager and they’ll say that the channel challenges the Pareto Principle and distorts the ratio – 95/5 is more often the case.

But if you can slide the scale back the other way – toward 80/20 and, ideally, far beyond that formula – you’ll realize far greater success, because you’ll increase the number of partners performing well and you’ll grow your revenues as a result.

How do you do this? You can – and should – work with existing partners to make them better at selling your products. But you should also refocus your efforts during the recruitment http://www.relayware.com/products/relayware-features/recruitment/ process and pay closer attention to prospects who will help you achieve a more profitable mix of partners.

Our webinar on recruitment (a recorded version is available here) http://www.relayware.com/about-us/relayware-events/webinar-recruiting-channel-partners/ explores how you can target these partner companies and then add them as productive members of your partner program the right way, with a smooth on-boarding process and a continuing engagement that makes them excited to be part of your partner team. Remember – it’s not enough to discover the right potential partners and then sell them on you as a vendor. You have to keep them engaged and demonstrate that you’re as valuable to them as they are to you.

Jim Somers and Tim Harmon walk you through the steps of creating a great recruitment effort – not just through the steps of recruiting partners, but the steps of laying a foundation for those partners to be successful and profitable. If channel recruitment is part of your job, you owe it to yourself to see what they have to say.

 

 

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