Understanding the dynamics of sales channels can transform how businesses approach their markets. Many sales professionals, whether they are salespeople, managers, or CEOs, often miss a critical distinction: the difference between the product they are selling and the value it provides.
This gap in understanding can lead to suboptimal sales performance, particularly in environments where products are sold through intermediaries, such as distributors, referral partners, or dealer networks. The challenge is not just about knowing your product, but also about understanding how to position it in a way that resonates with every player in the sales chain.
Sales success starts with recognizing who your true customer is. In sales management or channel sales, the end customer is often not the person you interact with directly. Instead, your “customer” might be the intermediary, your distributor, reseller, or even your own sales team. These intermediaries are the ones who ultimately connect your product to its final user. If you don’t understand their challenges, motivations, and context, you risk failing to equip them with the necessary tools to succeed. Are you selling a product’s features, or are you helping them understand how to sell it effectively? This distinction is vital.
When selling through intermediaries, the emphasis should shift from “what the product does” to “how the product can be sold.” Your distributors or referral partners don’t need every technical detail of your product. They need clarity on how it solves problems for their customers, how it fits into their existing offerings, and how they can position it to drive sales.
The goal is not to overwhelm your partners with information but to provide actionable insights that align with their specific needs. If you’re focusing solely on product features, you’re likely missing the mark.
Salespeople and sales managers must also recognize the game they are playing. Are you selling a commodity, a widely available product, or an exclusive offering? Each scenario demands a different strategy.
Commodities often compete on price, necessitating bulk sales or value-added services to differentiate themselves. Widely available products often rely on relationships, service quality, or unique add-ons to differentiate themselves. Exclusive products, on the other hand, can often avoid price wars by emphasizing their uniqueness and superior quality. Knowing which game you’re in allows you to tailor your approach and avoid misaligned strategies.
For small businesses and solopreneurs, the challenge lies in effectively managing referral partners. Referral partnerships are a powerful way to generate leads, but they require careful management and oversight.
Your referral partners need a clear and concise understanding of how to effectively position your services or products within their network. If you simply ask them to “refer everyone,” you’re setting them up for failure. Instead, provide them with a clear value proposition and specific scenarios where your offering can make a meaningful impact. Have you made it easy for your referral partners to introduce you to potential clients? If not, you may be leaving opportunities on the table.
Effective sales management also involves empowering your team. Your salespeople are your direct channel to the market. If they lack the necessary tools, training, or context to sell effectively, the ripple effect will negatively impact your bottom line. Managers need to focus on more than just quotas and metrics; they must ensure their teams understand the value they bring to the customer. This includes simplifying complex product information into actionable insights that resonate with the customer’s needs.
Are you equipping your team to sell solutions, or are you bogging them down with unnecessary details?
Knowledge transfer is a critical piece of this puzzle.
Whether you’re working with referral partners, distributors, or your own sales team, you must ensure they understand the value of your product and how to communicate it effectively.
A practical way to test this is by asking them to articulate what they’ve learned after a training session or meeting. Can they explain how to position your product effectively for their target audience? If not, your message may not be reaching its intended audience. Regularly testing and refining this transfer of knowledge can significantly improve the effectiveness of your sales channels.
The complexity of multi-layered sales channels often requires a tailored approach at each level. For example, if you’re selling a product to a contractor who then sells to a homeowner, you need to equip the contractor with the tools to sell your product downstream. This might include marketing materials, pricing strategies, or even training sessions. The contractor doesn’t need to know every technical detail of your product; they need to know how to communicate its value to the homeowner. Have you considered what each layer of your sales channel needs to succeed?
Sales managers and CEOs should also consider the emotional and practical motivations of their channel partners. What drives them to prioritize your product over competitors? Is it ease of sale, higher margins, or the perceived value to their customers? Understanding these motivations can help you craft incentives, training, and messaging that align with their goals.
The better you understand the perspective of your channel partners, the more effectively you can position your product as the best choice. Are you addressing their needs, or are you assuming they will figure it out on their own?
The ultimate goal is to empower everyone in the sales chain to sell not just a product but a solution. This requires a shift in mindset from selling features to selling outcomes.
Customers don’t buy drills because they want a drill; they buy drills because they need holes. And even beyond that, they need the results that come from those holes, whether it’s a mounted shelf, a new deck, or a completed project. Are you helping your salespeople and partners connect your product to the outcomes their customers care about? If not, you’re likely missing a crucial opportunity to differentiate yourself in the market.
Understand your sales ecosystem
Achieving this level of alignment is not an easy task. It requires a deep understanding of your market, your product, and the various players in your sales ecosystem. It also demands consistent communication, training, and support. Sales managers need to think of themselves as enablers, not just overseers.
CEOs must recognize that their role extends beyond strategy; they must actively engage in ensuring their vision is communicated effectively at every level of the organization. Are you investing the time and resources needed to align your team and partners around a shared understanding of value?
For businesses that rely heavily on referrals or channel sales, this approach is not optional; it’s essential. The more effectively you can equip your partners and salespeople to sell, the more successful your business will be. This means simplifying your messaging, focusing on value, and ensuring that everyone in your sales chain understands how to effectively position your product. Are you making it as easy as possible for others to sell on your behalf? If not, you’re likely creating unnecessary friction in your sales process.
If this concept feels complex or daunting, that’s because it is. Selling through others, whether via sales teams, distributors, or referral partners, requires a strategic approach. It’s not just about having a great product; it’s about ensuring that everyone in your sales chain knows how to sell it effectively.
If you’re struggling with this, consider seeking external expertise. A fresh perspective can often uncover blind spots and provide actionable strategies to improve your sales performance. Are you ready to take the next step in optimizing your sales channels? One way to achieve this is to join the B2B Sales Lab.
The B2B Sales Lab is a resource where you can ask your peers questions and receive assistance. In the lab, you can ask questions that are bothering you or that you think you need help with, and others who have been through the same situation will be happy to assist you. You can join the lab by visiting www.b2b-sales–lab.com and receive a complimentary 90-day trial of the community.
By focusing on the value your product provides and aligning your messaging with the needs of your salespeople and partners, you can create a more effective and efficient sales process. This is not about reinventing the wheel; it’s about making sure the wheel is turning in the right direction. Whether you’re a salesperson, a manager, or a CEO, the principles remain the same: understand your audience, simplify your message, and empower others to succeed. Are you ready to shift your focus from selling the drill to selling the hole, and beyond?
Immediate Actions to Enhance Your Sales Strategy Today
- Identify Your True Customer in the Sales Chain: Take time to map out who your true customers are within your sales chain, whether they are distributors, resellers, or referral partners. Engage with them to understand their unique challenges and motivations. Use this insight to tailor your communication and support, ensuring that you’re providing what they need to effectively sell your product.
- Shift Focus from Product Features to Solutions: Reevaluate your sales materials and training resources to emphasize the problems your product solves rather than just its features. Develop clear, concise messaging that helps intermediaries understand how to position your product as a solution to end-user needs. This approach will make your offerings more appealing and relatable to your sales partners.
- Empower and Equip Your Sales Team and Partners: Conduct a quick audit of the tools, training, and resources available to your sales team and partners. Ensure they have access to the necessary insights and support to confidently position your products. Consider organizing a brief training session or workshop to reinforce the value proposition and selling strategies for your products.
- Refine Your Referral Partner Strategy: Review your current approach to managing referral partners. Provide them with a clear value proposition and specific scenarios in which your products or services excel. Simplify the referral process to make it easier for partners to connect you with potential clients, and regularly check in to offer support and gather feedback on their experiences.
