Who is the Channel? Technically speaking, any pathway, conduit, or canal that moves products downstream to the end user can be considered a channel. For practical purposes, however, this description does not provide enough detail. Dell, HP, and other multinational companies move products downstream to the end user, but they’re certainly not considered channel companies. There are e-tailers like Tiger Direct, New Egg, or CDW, who move tons of equipment to the end user, but very few people refer to them as the Channel. In reality, the Channel is “small business”; all the little guys that reach out to SMB or serve specific vertical markets. I like to refer to the Channel as “a thousand snapshots of the American dream”. They build companies, hire employees, feed families, and stimulate their local economies. They are wonderful examples of the free enterprise system.
Unfortunately, their blessing is their burden; most Channel players are entrepreneurs. Rugged individualists who brave failure for the sake of freedom. And like the farmers of the 80s, that “lone wolf” mentality has become a liability. Competition from large conglomerates is proving itself too difficult to overcome as a stand-alone company. Our success in the future lies in collaboration; farm co-ops in the 80s saved farms that had been in families for generations. A Channel co-op provides the same opportunity, and Channel entrepreneurs are waking up to it. We recognize that it is time for a change…
The Channel is the best kept secret in technology; highly valued by the vendor community and totally unknown to the buying public. We produce almost 40% of the revenues realized by the vendor community. The Channel is perceived as the most powerful sales engine in the industry, yet realizes few of the benefits afforded that distinction. It remains a powerless business entity. There is no association organized or endorsed by the Channel and no meaningful representation. There is, however, a whisper of a collective voice. The dynamics are beginning to change as we organize to realize our potential, which is why Channel leaders are calling on their peers to “communicate – collaborate – evolve”.
