Menu
​Secret Reseller - Don’t tell me to change my business model

​Secret Reseller - Don’t tell me to change my business model

ARN’s partners inside the industry lift the lid on the real world of the channel.

I find it somewhat ironic when managers who have worked for large-scale multi-national corporations their entire life take me to one side and tell me to change my business model.

Apparently it’s so I will succeed in the ‘ever-changing business landscape’, or whatever we’re referring it to as nowadays.

As a business owner, I’m being instructed by people who have genuinely no idea of what it takes to run a small to mid-sized organisation.

Yet they think they have a divine right to offer advice and guidance on how to run my business, simply because they’ve read a few analyst reports. It’s almost laughable.

Vendors forever enjoy telling partners to ‘change this, change that, move to services and so on’, but very few of these ‘visionaries’ who I talk to have any substance to their argument - it’s simply superficial.

We all know the type. The ones that use opinion pieces in the channel press, or speaking spots at industry events to wax lyrical about the new ways to succeed, preaching adaptability as if it’s the first bright idea since fire.

Of course, there’s no doubt that the IT industry is changing, and that traditional practices are being outdated as the market progresses. If anything, my time in the channel has taught me that the industry is forever in a state of flux.

Yet also, it’s taught me that change is never as rapid as most vendors would have us believe.

Customers are going to continue to seek different solutions depending on IT maturity levels, with the vast majority of larger companies in the country still working through the lifecycle of previously-procured IT.

So my point is that if said customer purchased such kit from my business, then they still want my business to support it. This begs the question - how can I change my business into something new if my customers want the old me?

In fairness, most vendor advocates for changing your business model suggest bringing on new revenue streams gradually, but few seem to have suggestions on how to do this beyond buying their product.

Most vendors and distributors are even offering finance terms for bringing on certain services, and a few of my contemporaries have done some good deals on the back of such agreements. But to really transform a business, these deals are never enough.

Bringing on recurring revenue is all well and good, but compensating sales guys in this way - especially the long-termers - presents its own set of problems.

These guys want the big fat cheque each quarter, and drip feeding them recurring revenue does not sit well with what they have become accustomed to.

Naturally this presents a challenge around whether it’s wise to stick with loyal servants of the past, or move towards the new blood coming through in the future.

Notching additional strings to your bow is never a bad business strategy however, but when vendors bet big on new technology, they want as many partners as possible to come along for the ride.

But what’s best for the vendor is almost never best for the reseller.

Specialisation may be the catch- cry for the channel at the moment, and that’s all well and good, but throwing all of your eggs into one basket doesn’t sound like something Warren Buffett would do.

So I think I’ll hold fire on changing my whole business model for the interim.

This article originally appeared in the February issue of ARN magazine - to subscribe, click here


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Secret Reseller

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments