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Education

StreetSmarts SM

Creating new distribution channels

By Marc Beauchamp What's attractive about creating indirect sales channels? It
Bankcard Life can quickly impact the bottom line while keeping selling
expenses to a minimum. And in most cases, the product
s 2019 closes out, you may want to consider is complementary to what your distribution partner is
new ways or strategies to distribute your already offering to its existing client base.
products and services. Are you stuck selling
A and marketing to the same hyper-competitive The five steps to landing and empowering a new
merchant categories? Are you thinking out of the box distribution channel are to identify natural partners,
and testing unique marketing strategies your competitors develop their role in the process, set clear expectations,
aren't? develop and deliver training, and create a sales support
system. I'll explain each in detail.
With COVID-19 remaining with us for the foreseeable Step 1 – Identify natural partners
future new innovative strategies and tactics need to be
deployed to attract, qualify and convert more merchants. The most important step in the process is identifying the
The status quo will not get the job done. best potential partners. Ideally, you are looking for people
A powerful sales driver selling, recommending or serving your target merchant.
For example, if your target merchant category is auto
If you're not getting the results you want, consider repair facilities, you want to research and approach
expanding your distribution channels. What do I mean potential partners specializing in that market.
by distribution channels? Distribution channels are
independent avenues that facilitate the sale of your How do you find them? Look for the target industry's trade
products and services. Think about how merchant services associations, publications, wholesalers, local chapters or
are traditionally brought to market: banks contract ISOs industry experts. Identify key player that would be a good
who in turn contract merchant level salespeople (MLSs) match. Some examples might be consultants, trainers,
to sell their wares. In essence, an MLS is a distribution software companies, marketing companies, equipment
channel for the ISO. vendors and trade groups.
Step 2 – Develop their role in the process
Software is another example of an industry that relies
on multiple distribution partners. Software companies Depending on the type of distribution partner, the
use value added resellers (VARs) to sell, install, train and potential partner will have different roles in the sales
maintain their product offerings. The majority of B2B process. Determine whether the company or individual
companies utilize multiple distribution or indirect sales will be doing the actual selling and appropriate paperwork
channels. or will just be referring a warm lead to close.

Implemented correctly, new, independent distribution Use a commonsense approach. If the prospective partner
channels can be powerful sales drivers for your company. is currently not meeting face to face with your key target

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