The way IT vendors sold products and services in the past revolved primarily around models where a channel partner resold the product after it was purchased from the vendor or acted as an agent on behalf of the vendor. With the rise of cloud services, the relationship between IT providers and their channel partners continues to evolve. Many of these suppliers work more closely with channel partners using a co-sale model. Co-selling isn`t a new approach to sales, but in this competitive landscape, it can be more effective, especially when it comes to scaling your business. Co-ing can open up new markets and new organizational efficiencies. Here are the basics of co-selling and how it can help your business get the most out of its partnerships. Building an effective co-selling partnership isn`t as easy as identifying leads and creating a successful sales pitch. These partnerships often steal or fail, depending on how you choose a partner in the first place. Co-selling can be more profitable and less time-consuming than reselling in terms of closing a deal. A competitive study found that 77% of companies that co-sell have seen a direct or indirect increase in their profits since the introduction of this model.

Nine out of 10 companies surveyed also said that reseller models require more time and financial commitment than co-selling. And yes, co-selling is indeed very popular. When industry giant Microsoft announced its co-sale program in July 2017, a very big hat was thrown in the ring, and according to this RCP Mag article, it`s booming. Several factors are leading to more co-selling partnerships in the industry, says Shawn Ragell, head of partnerships and channel marketing at Close, a CRM for startups and small businesses. But that wall between church and state is slowly starting to crumble as more companies turn to co-selling to encourage collaboration between sales teams in their partner ecosystem. If followed, co-selling is beneficial for direct value resellers, SIs, and channel partners` MSPs, as it eliminates the risk of channel conflicts between suppliers and partners. The co-sales strategy is also extremely useful for identifying opportunities to improve technical support as well as overall sales. So what can co-selling do for your tech company? Read on to learn more about this solution that has attracted so much attention lately. Inbound marketing company HubSpot, which has nearly 2,000 partners, has also expanded its brand through sales and co-sales agreements with partners.

Depending on the agreement, some partners may be able to contribute revenue if they sell an additional subscription service to an existing HubSpot customer. The key to maintaining the right co-selling partnership is that your going-to-market strategy dictates optimal coverage based on the uniqueness of the supplier`s offerings. Consider this: He adds that co-selling gives companies a competitive advantage for two main reasons: collaboration and control. Whenever something “new” happens, entrepreneurs and consumers are either extremely excited or extraordinarily worried, and often rightly so. .