Channel partners are needed by every successful vendor, manufacturer and developer to help them sell their products and services. This is especially true in the Information Technology industry. Building a great relationship with the partner is essential in the success of the business for both parties. The first step to that goal is the channel recruitment process. Here are some of the necessary steps to ensure an effective recruitment program:

• Choose the reseller according to your product.

For lower priced products, mass merchants or retailers are the best way to go. The lower margin usually means high volume of products. An example would be the gaming industry where vendors mass produce installers and merchants like Wal-Mart can sell these games directly to the end consumer.

For high value products, like software applications for engineers, a vendor would need Value Added Retailers or VARs who are especially equipped to handle the sale of these products.

• Select distributors.

One of the benefits of choosing a wholesaler instead of a retailer is that vendors can make use of the wholesaler’s warehouse, accounting and transportation capabilities. The wholesaler has dealers that the vendor doesn’t have to manage.

There are also disadvantages to recruiting a wholesaler. One is the alienation of the vendor to the end consumer since there are a lot of middlemen in between. Another is the added increase in street price.

• Choose retailers.

In business to business transactions, the vendor has to identify the right retailer for the product. For example, regular consumers are more likely to shop at mass retailer such as Best Buy so vendors of software or hardware for home use should target these retailers. Specialized software like web development applications and graphic software for artists should be sold at outlets that cater to companies needing these kinds of product.

• Recruit VARs and System Integrators.

These are highly specialized resellers that cater to a very specific industry. An example is a partner who exclusively sells CAD (Computer-Aided Design) to engineering firms and companies. These kinds of channel partners are the hardest to find. They would need extensive training and product demonstration to effectively sell the product. Once the VARs or System Integrators are chosen, building the database is next on the list.

• Attend Vertical Trade Shows.

Vertical Trade Shows are different from the most common Horizontal Trade Shows where there are varieties of products on display from various vendors. In this kind of trade show, there is one particular product on exhibit and that specific product is the highlight of the event.

• Hire training firms and rep firms.

Learning to sell the product is necessary for this type of reseller. Since the product is highly specific, marketing it to the right end user is the key to selling the product.

Advertise in trade magazines and publications that target the market you want your reseller to sell to. This will also get the attention of more VARs that may want to sell your product.

• Create buzz with PR.

Public Relations is a necessary step to introducing a new product to the market. This will attract VARs because they want to sell what the market is familiar with and they will have an overview of what to expect about the product.

There is no one way solution for channel recruitment. The vendor has to research all the options and must know from the start what the product is all about to determine who the right channel partners are.