Channel Partners are companies that refer, co-sell, resell or distribute the products or services of another company. These partners often have a close relationship with the company whose products or services they sell. Channel partners is a category of partners that included different types of partners.
Understanding Channel Partners
Channel partners are strategic intermediaries that extend a company's sales and distribution capabilities without the overhead of building a direct sales force in every market. As a partner category, channel partners focus specifically on revenue generation through various go-to-market activities.
Unlike product partners who enhance your offering or marketing partners who amplify brand awareness, channel partners take an active role in the sales process—from lead generation and qualification to deal closing and sometimes ongoing customer support.
Types of Channel Partners
Channel partners vary significantly in their operational responsibilities, customer ownership, and revenue models:
Channel Partner Types Comparison
Compare responsibilities and revenue models across channel partner types
| Comparison | Partner Type | Sales Involvement | Customer Relationship | Revenue Model |
|---|---|---|---|---|
| Referral Partner | Introduction + qualification | Vendor owns customer | Referral fee or commission | |
| Business Broker | Full sales cycle + negotiation | Shared during sales | Commission + services | |
| Reseller | Full sales cycle | Partner owns customer | Margin on wholesale price | |
| Distributor | Sells to resellers (B2B2C) | Partner owns resellers | Volume discounts + margins | |
| OEM/White Label | Full sales under own brand | Partner owns customer | Wholesale or license fees |
Common Challenges & Solutions
Related Concepts
- Partner Program - The structure that governs channel relationships
- Reseller - Most common channel partner type for SaaS
- Managed Service Provider (MSP) - IT service channel partners
- Deal Registration - Protects partner opportunities
- Partner Portal - Central hub for channel partner resources
Learn More
Deep dive into channel partner strategies: