Channel sales refers to selling products or services through third-party channel partners like distributors, affiliates, resellers, and sales agents rather than direct sales. It provides access to wider markets by leveraging channel partners' relationships, industry expertise, and existing customer bases.
Channel partnerships work best when the provider and channel partners closely align target customer profiles, product positioning, and incentives. Companies should equip partners with ample training, marketing assets, demo access, and sales collateral.
Channel sales enables scalable distribution and revenue growth leveraging others' sales capacity versus adding extensive in-house resources. However, companies give up some control over the customer experience and branding. Careful partner selection, agreements, and monitoring help maximize channel success.