Distribution partnerships are strategic alliances formed between companies, typically technology or SaaS providers and distributors who specialize in delivering products or services to end customers.
These partnerships accelerate growth by providing companies access to new customer markets. Distribution partnerships essentially provide an outsourced sales team to your channel ecosystem.
There are two types of distribution partnerships, direct and indirect:
Both models offer unique benefits. Direct distribution gives the company more control over the sales process and customer relationships, while indirect distribution provides access to a wider network of potential customers and specialized sales expertise.
The key to a successful distribution partnership is open communication, comprehensive onboarding and well-structured, transparent payment models. It's important to note that distribution partners are not merely sales channels. They play a significant role in customer retention and overall business growth by providing valuable market insights and customer feedback.
Related: What you need to know to drive distribution revenue.
A new messaging app for businesses has a distribution partnership with an e-commerce platform, meaning they can offer the communication solution to their customers, helping them streamline teamwork and making them the go-to tool for more businesses.
Sign up for our newsletter to enjoy premium partnerships and ecosystem content you can’t get anywhere else.
By submitting this form you agree to PartnerStack's Privacy Policy.