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Channel sales

Channel sales

Noun

[chan-l seylz]

Channel sales, also known as indirect sales or partner sales, are sales facilitated through third parties instead of directly through a company’s sales team. These third parties may be agencies, influencers, or distributors. This is a common go-to-market strategy amongst B2B (business-to-business) software companies.

Channel sales is often a far more efficient system for driving revenue than direct sales, since the company doesn’t have to hire a sales team. Rather, the company only pays if and when partners make sales. Typically, partners are paid a cut of the sale, so it doesn’t require the same degree of overhead investment or risk as hiring and training an inside sales team.

That being said, to unlock maximum growth potential, many companies opt to use both direct and channel sales. Since partners will likely have access to different audiences than your sales team, it’s often worth investing in both. The programs are usually complementary as opposed to cannibalistic

Example: Lavender Ltd. drove 30% of their revenue last year via channel sales, up from 20% the year before.

More Partnership terms beginning with
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Channel partnerships

In a channel partnership, the vendor (PartnerStack’s customer - i.e. the company that makes the product) uses a partner to resell, manage, and/or deliver the product to end customers.

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Customer ambassador

A satisfied customer who often takes on a special role helping promote the company and their offerings to their peers.

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