A description of the "primary area of responsibility" or authorizedterritory for the channel > Reference to the products that Special Screws Factory the channel is authorized to represent for you > An outline of the process for review of the relationship, business planning goal setting and forecasting; you should set expectations that there will be regular performance reviews. The specific metrics can be spelled out later in the channel program > A basis for termination of the relationshipPricing/EconomicsThe purpose of this paper is not to explore the nuances of a channel pricing structure. However, a section of your channel program should outline in detail that economic relationship. All program elements that affect how money changes hands between you and the channel are captured here: > Your price/discount and channel compensation structure > Policies for price changes and any price protection for the channel > Payment terms and freight policies > Invoicing/billing procedures > Other items, including warranty reimbursement, rates/policies, minimum order quantities, product discontinuance policies, etc.Sales/MarketingIt is critical that you tailor this chapter to the needs of your target end user. The reason you have authorized a channel partner is to help acquire and retain your customers, and this section of your program outlines in detail what you expect of your channel to do so. It is this section of your program that defines how and to what degree your channel invests in the sales and promotion of your product (as well as the consequence should your channel partner fall short of your expectations). Common elements included in the sales/marketing chapter: > Detailed channel requirements for sales representation and a basis for measurement of each; do you expect the channel to employ inside/outside sales dedicated to your line? What are the capabilities expected in these individuals? > Product line-specific sales/marketing investment; what additionalinvestments/capabilities of the channel are important to you? How does the channel qualify for each? And what support do you offer to assist thisqualification? > Sales training--Will you certify your channel partner's sales force?
What training is required to qualify, and what benefit accrues to the channel partner for achieving this certification > Advertising/co-op--Is there a mandatory investment by your channel partner? How do you support this through a coop program, and what is the administration for this program? > Merchandising/point of purchase--Is merchandising relevant, and if so, do you put any parameters around the way your channel partner merchandises your product? > Literature and collateral materials--Does the channel partner need literature and collateral material? To what extent do you make this available and/or charge for it? > Trade shows--Is the channel partner expected to attend and/or display at trade shows? How many and which ones? Will you make display materials available? >
Lead generation/qualifications--Will you supply leads or expect the channel partner to develop these? Are there any reporting requirements to follow-up and qualify leads you provide?TechnicalThis is particularly important if your channel participates in a technical selling scenario or adds technical value-add on your behalf; spelling out the technical elements of your channel relationship helps ensure the consistency of support to your end user. Typical technical requirements address: > A detailing of the technical knowledge/capability expected of the channel sales force, along with your basis for measurement; this may tie back to the way you train or certify the channel sales organization. You may also specify background of the channel partner's technical sellers (for example, engineeringdegrees/experience) > Technical support elements provided by you to the channel including: > Training--Do you offer training to the technical support organization within your channel partner? For repair/service? For aftermarket technical support? Etc.
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