Features & Benefits
Deal Registration – Reducing Channel Conflict
Deal Reg is a fundamental process of every good channel program and has been around since the early 80’s. With direct sales, you can control who sells where. But reseller partners often have overlapping territories–some work locally, others regional, or nationwide. So, we can’t give them territories. Instead, they select deals.
The Chanimal Partner Portal uses a Deal Registration system to:
The Chanimal Partner Portal includes industry best-practice Deal Registration policies.
In addition, it includes a registered deal form that is pre-configured to capture the prospects’ contact information, the anticipated deal size, the anticipated close date, and the probability of closing.
Plus, days working the deal, at what stage is the deal: have they made contact, talked with the contact, given a demo or submitted a bid.
Submitted registered deals are always stored in the PRM system database, plus they are automatically emailed to the partner manager directly from the PRM or through an integrated CRM or Marketing Automation system—your option.
You can then reply if it is accepted or rejected. They are typically declined if it is already a house account, or registered by another partner). This information is typically stored in your CRM.
Should you have territories or Deal Reg?
We often get asked, “Should I set up territories?” In other cases, we get asked, “Why should I use Deal Registration.” Following is the response.
First, let’s discuss territories.
A policy of registering a deal, or Deal Registration, became popular in the late 80’s and has continued since—in fact, every top channel program (that works with VARs, MSPs, SI’s, etc. (not retail)) has some form of deal registration. It helps reduce channel conflict between competing channel partners and with your internal sales department.
Typically, a reseller completes your deal registration form (including the size, time frame, products, competition, status in the sales cycle, etc.). You would not approve it if it is already a house account (you are already working the prospect (be careful if you are not—easy to trace with a single phone call) or it has already been registered by another reseller. If approved, you provide exclusive benefits:
The deal registration policy has numerous detailed checks and balances, along with additional benefits and is described in detail within the partner portal. Please review.
Can another reseller still sell the deal?
Deal Registration provides exclusive benefits, but it does not force the customer to buy from ONLY that reseller.
If the reseller can’t close the deal with ALL of the Deal Registration benefits, there is usually another problem—often they don’t have a good (or the best) relationship with the account: maybe they burned them on prior price, or had poor support, or were a pain to work with, was always late, or they may be competing with an MSP that already “owns” the account for most tech products.
Some companies have exclusive purchasing agreements (GE divisions were supposed to order from CDW)—but the reseller has to learn about these before spending too much time (or sell “through” CDW – creative).
The “market” teaches best and we cannot reward poor behavior or sloppy salesmanship—we can only offer advantages. There will always be some conflict (they are competitors), but Deal Registration removes most of it.
What if the Office takes the order?
Sometimes an account may have a question and call the vendor. Or their reseller is not available.
As mentioned above, we should always ask if they are working with a partner. Other times the prospect can’t get hold of their reseller (on vacation), but just wants to get the product ordered.
In this case, take the order—but it is not a “sale” it is customer service and we should afford this service to resellers and internal sales (much like a sales manager might help his sales rep that is on vacation—“Hey, that deal came through!”).
We would still have to pay the reseller (the full amount) if they registered the deal. Two minutes to process an order is not the same effort as the months to present, follow up, do a mini-trial, overcome objections, etc. and close the sale.
Plus, we should always take a prospect’s money when they are willing to give it to us—we can easily work out the details later. But the tie goes to the runner—and the reseller is the one doing the real work.
How do we handle the accounting?
The easiest way to account for a registered deal versus a non-registered deal is to create separate SKUs and each one is assigned a different commission/margin.
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