[GTM glossary](/glossary.txt) Channel partners

GTM Strategy & SaaS Metrics

# Channel partners

In short

Channel partners are the group of outside companies a vendor recruits, enables, and manages to sell or deliver its product. The term often refers to the program and ecosystem as a whole.

Where a single channel partner is one relationship, channel partners as a network need tiers, rules, tooling, and a dedicated owner to produce predictable revenue.

## What a channel partner program includes

* **Partner tiers:** Levels such as registered, certified, and strategic, each with different benefits and requirements.
* **Incentives:** Margins, commissions, rebates, and market development funds.
* **Enablement:** Training, certification, demo environments, and co-branded content.
* **Deal rules:** Deal registration and territory rules that prevent conflict with direct reps.
* **Partner portal:** A place for leads, resources, and reporting.

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## Building a partner network

### Define who you want

Write a partner profile the same way you write an ideal customer profile: segment, region, services offered, and the customers they already serve.

### Recruit and onboard

Start with a small group. Give each a clear first goal, such as one registered deal in 60 days, rather than a long list of obligations.

### Review and prune

Review partners quarterly. Promote the active ones to higher tiers and stop spending time on partners with no activity.

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## Metrics to track

* Partner-sourced and partner-influenced pipeline.
* Win rate and average deal size by partner.
* Time to first deal for new partners.
* Share of partners that are active in a given quarter.
* Retention of customers brought in by partners.

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## Common mistakes

* **No owner:** Without a partner manager, programs stall after launch.
* **One-size-fits-all terms:** Different partner types need different incentives.
* **No shared data:** If partners cannot see which accounts you are working, conflict follows.

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## Channel partners vs. channel partner

The singular term describes one partner and its role. The plural describes the ecosystem and the program you run around it.

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## Channel partners FAQs

**What are channel partners?**

Channel partners are independent companies, such as resellers, agencies, and integrators, that a vendor works with to sell or deliver its product. Together they form a sales channel that extends reach beyond the vendor's own team.

**How do you build a network of channel partners?**

Define the partner profile you want, recruit a small group, give them training and clear deal rules, and set shared goals. Review activity each quarter, promote strong partners, and stop investing in inactive ones.

**What metrics measure channel partners performance?**

Common metrics are partner-sourced pipeline, partner-influenced revenue, win rate, average deal size, time to first deal, and the percentage of partners active each quarter. Customer retention for partner-sold accounts is also worth tracking.

**What are the types of channel partners in a program?**

Programs typically include resellers, referral partners, agencies and consultants, system integrators, and technology partners. Each has a different role, so incentives and enablement should differ by type rather than follow one template.

Share term

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## More related phrases

* [Partner marketing](/glossary/partner-marketing.txt)
* [Partner program](/glossary/partner-program.txt)
* [Partner enablement](/glossary/partner-enablement.txt)

## Similar phrases

* [Sales partnerships](/glossary/sales-partnerships.txt)  
Sales partnerships are agreements where outside companies help find, influence, or close deals for your product in return for commission, margin, or shared benefit.
* [Channel partner](/glossary/channel-partner.txt)  
A channel partner is an outside company that sells, resells, or refers your product to its own customers in return for a commission, margin, or other incentive.
* [Channel sales](/glossary/channel-sales.txt)  
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.txt)  
Partner-led growth is a go-to-market strategy where partners such as resellers, agencies, and tech vendors drive much of acquisition and expansion.
* [Market development funds (MDF)](/glossary/market-development-funds.txt)  
Market development funds (MDF) are vendor-provided budgets that help channel partners pay for marketing activities that generate demand for the vendor's products.