Are Vendor Leads The Key To Your Growth?

A recent comment made by Louis DaRe, VP of sales at Executive Software, really stuck with me. I was interviewing DaRe about channel program changes at Executive when he said, "We are seeking VARs who will reach out and sell our products rather than wait for leads from us." I began wondering how much VARs rely on vendor leads for new business development. Most of the channel companies I speak with list referrals, either from vendor partners or customers, as their primary method of finding new projects. But, what about good old-fashioned cold calling? Are channel companies too busy - or just too thin on manpower - to devote time to proactive marketing? Granted, the promise of leads is a big reason VARs choose vendor partners. And with the new-and-improved channel programs that have cropped up during the last year, vendors seem even more devoted to keeping solution providers happy.

However, as the old saying goes, "You can't squeeze blood from a stone." If companies aren't spending more on IT initiatives - and they don't seem to be - even the best of vendor partners is going to have fewer leads to offer. Your customers are now used to doing more with less, so convincing them to purchase additional or replacement IT resources is becoming even more challenging. Of course, you know that already.

To combat this problem, review your sales and marketing techniques/knowledge. A lot of channel companies were started in basements or garages by guys who thought moving hardware would be easy since they had some degree of technical knowledge. Many of those companies are now out of business. The survivors probably either hired sales executives or learned these skills from vendor or distributor partners. For instance, on page 76 of this issue is a sidebar about how integrator Quest Solutions Inc. took advantage of distributor WAV's Wonders of Wireless (WOW) educational road show. Like most distributors, WAV offers these programs for free and provides technical information as well as advice on how to sell the featured technologies. Quest walked away from the WOW show with not only a new vendor partner, but a better understanding of RFID (radio frequency identification) technology, which eventually led to two RFID pilot projects.

Partner, Plan Now For Future Growth
The key is to be proactive and go out and learn about a new technology or, if need be, focus on a particular niche market or product. After all, the jack-of-all-trades title is outdated. Vertically focused solutions and solution providers are in vogue. Vendors, too, are looking for more vertically focused channel companies to add to their ranks. But, don't limit yourself to selling only one part of a vertical solution. If you don't have the manpower, time, or knowledge to offer a complete solution, partner with another VAR who lacks your expertise.

When IT spending picks up again (and it will), will you have the solutions customers are looking for? Remember, those solutions may not be the ones that have always been successful for you. For instance, white-box VARs recently discovered customers are now seeking white-book (e.g. notebooks, laptops) solutions. Mobile computing integrators like Quest are discovering RFID is becoming an actual consideration and not just a pipe dream for some customers. In a nutshell: technology changes - so should your company. Don't wait for vendors to spoon-feed you leads. Cultivate your existing vendor leads, but start planting the seeds of future IT initiatives with your customers right now.