Stewart Townsend is the founder of Channel as a Service, and he is on his journey towards 8-figures. He helps grow companies by guiding them in setting up indirect sales forces, also known as channels.  Previously, Stewart held leadership roles at ZenDesk, DataSift, and Sun Microsystems.

What channels are in their simplest form?

“You have a product and you want to get it to a consumer or a business. How you get it there at the lowest cost is just a method. That method is you hire a lot of direct salespeople and do a lot of marketing. Or you can blend that with going through affiliates, referrals, resellers, third parties, etc. Give them a cut of the margin, pay them something, and get that deal in. Affiliates are just a powerful mechanism to get a product out to a market at a low cost.” – Stewart Townsend

How channels help SaaS businesses grow?

In a SaaS (Software as a Service) business, an indirect sales force refers to a sales model that relies on third-party partners, resellers, or channel partners to sell and distribute the company’s software products or services to end customers.

Instead of selling directly, SaaS companies partner with these indirect sales forces to expand its market reach, drive sales and drive business growth. These channel partners, which can include resellers, systems integrators, or consultants, bring industry expertise, established customer relationships, and market reach.

By leveraging these partnerships, the SaaS company gains access to new customer segments, geographical regions, and industry verticals that it may not have reached directly. Also, the company provides support, training, and incentives to its indirect sales forces, while also tracking their performance and maintaining strong relationship management. This indirect sales model allows the SaaS company to scale its business and benefit from the expertise and customer relationships of its channel partners.