Channel Partner
A channel partner is an outside company that sells, resells, implements or recommends another company's product to its own customers, usually in return for a margin, commission or referral fee.
Also called: reseller, partner channel
Why it matters
Channel partners give a company reach it would take years to build alone. A partner that already serves a market, such as a consultancy, reseller or managed service provider, can bring the product to customers who trust it, often with services wrapped around it. That can open new regions and segments without hiring a large direct sales team.
Partner types include resellers and distributors, referral partners, system integrators and consultancies, managed service providers and technology partners whose products integrate. A channel program usually defines how deals are registered so partners and the direct team do not compete, how partners are trained and paid, and how leads are shared.
Example
A company selling a backup product signs up a group of managed IT providers that each look after dozens of small businesses. The providers resell the product as part of their monthly service, register each deal in a partner portal and earn a margin. The vendor's own sales team focuses on larger accounts.
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