In recent months it has become more and more apparent that some vendors don't understand many of the most important details about working with their independent salespeople known as "resellers." 

Medical software and hardware resellers come from different backgrounds.  Some resellers were small or large IT companies who have expanded into this vertical market.  Others come from a medical billing background or may even have worked in a medical office.

Common Thread:  Resellers are united by one common thread -- their personalities.  They are an independent group by their very nature.  If a reseller wanted to be treated like an employee they would have submitted a resume.  Resellers want to be seen as a partner or as an equal.  It is important to note that these "red-type" personalities don't respond well to being bullied or forced into situations.  They are entrepreneurs more similar in personality to the managers of the vendor than the employees that often work with them.

Over the years, I have seen a lot of mistakes made as vendors strive to develop successful reseller programs.  Too much micro-managing of your resellers will only manage to push them to other vendors.  Not enough managing of your resellers and they won't have the tools and resources they need to be successful.

Too Much:  Vendor A gave its resellers one month to digest and sign a new reseller agreement that "forced" its resellers to devote 1/2 of their software profits to marketing the Vendor's software.  Not only would this new program be difficult to enforce, it was received by its resellers like a paper chart at an EMR convention.  Few resellers signed that agreement and those that did realized that the vendor had very little in the way of resources to enforce such an issue.

Not Enough:  Vendor B has never had a reseller training, doesn't have a reseller website, and only sends out sporadic e-mails to its limited reseller base wondering why their resellers never seem to have any sales.  They are a smaller company with a solid EMR, but they may never realize the potential of their existing reseller program because of a lack of resources devoted to their resellers.

What Resellers Need:  Communication, training, and flexibility are the foundation to every good reseller program.  Resellers need to be provided with resources to be successful, but ultimately a wise vendor still gives its resellers the flexibility and opportunity to run their own businesses and make good decisions on behalf of their clients.

A confident vendor realizes that they need to earn their resellers loyalty and doesn't mandate it or require it of them.  They focus on the details of creating a great product and a great program and the resellers will sell.

Top 5 Keys:  Below are the top 5 things I generally teach a vendor about developing and managing a successful reseller program.  They are in no specific order, but are all of equal importance.

1) Make time to develop trust. "No one cares how much you know, unless they know how much you care." This is especially true in sales and training. For example, when a reseller meeting becomes too large, you might even start the night before with an informal dinner with some of the group so that personal relationships can be developed and trust can be earned. The more a reseller knows and respects you as a person/trainer/leader/manager, the better they will listen to and incorporate your vision.

2) Resellers need to be viewed as a valuable partner.  From the top down, the entire company must be trained to view resellers as partners.  Sales people need to view them as an ally, support people need to view them as friends, and management needs to view them as an important piece of the organization.  If any department views them as a cost or a nuisance, the reseller program will struggle because resellers won't receive the type of support they need to be successful.

3) Train, train, train. A reseller can't sell what they don't know.  Invest in iLinc or WebX and do regularly on-line trainings with your resellers.  Hold cost-effective live trainings regionally (if possible) or near your home office.  Hold an annual training meeting at a cost effective location.  Give self-training materials to resellers so that they can learn on their own as well as train their clients.  If a reseller is unsuccessful at selling a vendor's system, it is more often due to a lack of training than any other issue.

4) Communicate regularly.  Send e-mails, newsletters, make regular phone calls, design a reseller website, create a reseller message board.  Really communicating with your resellers means knowing who they are and what they need.  Spending time on the phone or in person getting to know them is time well invested and will come back to benefit the company in the long run.  Take time to communicate expectations and then give your resellers the support to meet those expectations.

5) Maintain openness. In responding to dealer comments and criticisms, even what may seem like the worst of suggestions shouldn't be immediately disregarded.  Listen and consider what they independent rep is suggesting.  These resellers are your eyes and ears in the field.  They are working face to face with the end-users.  Chances are, some of your best feature enhancements and sales tools will come directly from being open to this channel.

The Point.  Companies have paid me thousands of dollars as a consultant and an employee for this 'common sense' information that I have gained from working directly with this channel over the years.  I have been hired to fix mistakes, evaluate possibilities, and advise on directions.  This is the same basic information I have tried to pass on to every organization I have worked with.  The vendors that have "got the message" are currently running a very successful reseller program.  The vendors that are struggling are the ones who may never understand the 5 keys of working with resellers.

Does your vendor get the message?
 

-- Kevin Burdick, InvestMed, LLC   

 

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