Itai Sadan is the CEO and cofounder of Duda, a leading web design platform for web professionals, agencies and SaaS platforms.
According to the U.S. Small Business Administration, 99.9% of businesses in America are small and medium-sized businesses (SMBs). This diverse market represents an incredible—yet challenging—opportunity. These businesses are resource-constrained and require a strategic outreach approach.
Direct sales can be challenging and inefficient. Instead, a channel-centric go-to-market strategy can offer a more effective and scalable path to success. Why market to millions of unique customers when you can instead work with a select group of thousands who can resell your product for you?
How can channels transform SMB reach?
The sheer volume of SMBs makes direct sales a costly and time-consuming endeavor. Channels, such as agencies, accountants, consultants and technology platforms, provide a force multiplier, allowing businesses to tap into established networks and expertise. Instead of building countless individual relationships, companies can leverage the relationships and trust that channel partners already have. This method is not only more efficient but can also be more effective in penetrating the market.
At Duda, we work with agencies to provide website technologies to SMBs. The agency uses our product, professional-grade software that was built for agencies, to create websites for their customers. This differs from selling websites directly to businesses that may not have the time or experience to work with our software.
Consider tax preparation, for example. A company like Intuit QuickBooks that creates tax preparation software might target professionals who prepare taxes for individuals and small businesses. In this approach, the company doesn’t need to sell the software to the end user directly (although it might still offer it). Instead, it works with an intermediary, the accountants, to do the selling on its behalf.
Marketing agencies and search engine optimization firms are great intermediaries for a variety of SMB solutions. They already serve these customers, have already developed a network and already understand their needs. While plenty of technology companies like website builders and social media management platforms can benefit from working with agencies, more traditional businesses could as well. For example, print shops partnering with agencies can create flyers for their customers.
Technology platforms themselves often act as great channels for businesses looking to work with SMBs. The idea here is to find a channel with a built-in marketplace, a specific group of people they work with who could benefit from your product or solution.
Build your own channel strategy.
Software built for channel distribution differs significantly from software designed for direct SMB use. Channel-focused software emphasizes multiclient management, collaboration and the ability to scale and distribute expertise. In contrast, software designed for direct SMB use focuses on the individual needs of a single company. Therefore, a dedicated dashboard for resellers is very important.
With that in mind, to build an effective channel strategy, it’s essential to focus on several key areas:
• Assets: Providing partners with the right marketing and sales assets is crucial. These could include brochures, demo videos, sales scripts and case studies tailored for the SMB market.
• Training: You must properly train partners on the product and its value proposition. This includes understanding the specific needs of SMBs and how the product addresses those needs. Ongoing support and training are essential.
• Product Tailoring: Design your product with channel partners in mind. This may mean adjusting features and pricing and creating a product that is easy to sell through the channel. This is different from tools built for an SMB itself.
• Channel-Specific Dashboard: Providing partners with a dedicated dashboard that shows all of their clients is important for managing multiple clients efficiently. Such a dashboard should include tools for client management, team collaboration and multiaccount management.
• Expertise Distribution: Partners can distribute expertise and solutions tailored to the needs of their clients, providing a customized experience.
Going to market through channels can be a smart move for businesses targeting SMBs. Channels provide a cost-effective way to reach and support SMBs without having to build individual relationships with each one. Channels help you scale your expertise and get your products or services in front of the right customers.
By working with partners and giving them the resources they need, you can build a strong sales engine that benefits everyone—your business, your partners and their SMB customers.
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