[GTM glossary](/glossary.md) Channel partner GTM Strategy & SaaS Metrics # Channel partner In short A channel partner is a third-party company that helps sell, implement, or distribute your product to its own customers, usually in exchange for a margin, commission, or referral fee. Common types include resellers, referral partners, agencies, system integrators, and technology partners. They extend your reach into markets or accounts your own team cannot cover efficiently. ## Types of channel partners * **Resellers:** Buy or license your product and sell it on, often bundled with their own services. * **Referral partners:** Introduce prospects and receive a fee when a deal closes, without handling the sale. * **Agencies and consultants:** Recommend your product to clients as part of the work they already do. * **System integrators:** Implement your product inside larger customers' environments. * **Technology partners:** Integrate with your product and co-market to shared customers. --- ## Why companies use channel partners Partners bring trust, local presence, and existing relationships. A company with a small sales team can reach more buyers, enter new regions, or serve industries where a specialist partner already has credibility. --- ## How to work with channel partners ### Pick partners who share your customers Look for partners whose clients match your ideal customer profile. A large partner with the wrong audience produces little pipeline. ### Make the economics clear Define margins, commissions, deal registration rules, and who owns the customer relationship before the first deal, to avoid conflict later. ### Enable and measure Give partners training, messaging, and sales materials. Track sourced pipeline, win rate, and retention by partner, and invest more in the ones that perform. --- ## Common mistakes * **Signing and forgetting:** Partners need ongoing enablement and attention to sell your product. * **Channel conflict:** Direct reps and partners chasing the same account erode trust. Use deal registration. * **Too many partners at once:** A few active partners beat dozens that never sell. --- ## Channel partner vs. channel partners This page covers the single partner relationship. For how a company manages a whole network of partners as a program, see channel partners. --- ## Channel partner FAQs **What is a channel partner?** A channel partner is an independent company that sells, resells, refers, or implements another company's product to its own customers. In return it earns a margin, commission, or referral fee, and often adds its own services on top. **What is an example of a channel partner?** A consultancy that recommends a software product to its clients and earns a referral fee is a channel partner. So is a reseller that buys licenses and sells them with installation and support services. **How does a channel partner make money?** A channel partner typically earns a resale margin, a percentage commission on closed deals, or a flat referral fee. Many also earn revenue from services such as implementation, training, and ongoing support. **What is the difference between a channel partner and an affiliate?** An affiliate usually drives traffic or leads through links for a commission, with little involvement after that. A channel partner is typically more involved, with a business relationship, sales or service role, and sometimes ownership of the customer account. Share term --- ## More related phrases * [Channel conflict](/glossary/channel-conflict.md) * [Channel strategy](/glossary/channel-strategy.md) * [Value-added reseller (VAR)](/glossary/value-added-reseller.md) ## Similar phrases * [Channel sales](/glossary/channel-sales.md) Channel sales is a model where a company sells through third parties such as resellers and agencies instead of, or alongside, its own direct sales team. * [Partner-led growth](/glossary/partner-led-growth.md) Partner-led growth is a go-to-market strategy where partners such as resellers, agencies, and tech vendors drive much of acquisition and expansion. * [Channel partners](/glossary/channel-partners.md) Channel partners are the network of resellers, referral partners, agencies, and integrators a company manages as a program to extend its sales reach. * [Partner marketing](/glossary/partner-marketing.md) Partner marketing is joint marketing with other companies, such as integration partners and resellers, to reach shared audiences and generate pipeline together. * [Sales partnerships](/glossary/sales-partnerships.md) Sales partnerships are agreements where outside companies help find, influence, or close deals for your product in return for commission, margin, or shared benefit.