What is the ROI for Certified Channel Manager training?
The easiest way to justify the cost for training is to roll the numbers:
- Assuming after just one course, you are able to hire or re-activate just ONE new reseller because of what you learn
- They sell just one new customer every quarter = 4 customers per year
- You have a SaaS application & the avg deal size is $100/month – that’s $1,200 per year x avg 2.5 years per customer = $3,000 revenue per sale
- So the single reseller is worth 4 sales, or $12,000 per year
- If the avg reseller stays on board for five years = then you make $60,000-lifetime revenue for every reseller
- If your cost for the initial Certification course is $2,000 – then you get a 30x return!
- If you are able to hire 100 new resellers (many trained channel managers go on to recruit hundreds if not thousands of new partners), instead of just one, with what you’ve learned? That 60k x 100 = $6 million in revenue for a $2k investment. That is a 300 x return!
- For comparison, in a software company, with a 20% gross margin–you need a 5x return on your marketing promotions to get your money back and break even.
- If we compare your channel return to a display ad, we realize that many ads only generate a 2.3x return. Even a good ad will typically only generate a 13x return (so 300 x return is one of the highest ROI you will ever get).