Channel sales defined
Channel sales is the model where third-party partners sell your product to end customers. Partners may be resellers, distributors, system integrators (SIs), independent software vendors (ISVs), or referral partners.
Partners take margin (10-40% depending on partner type) in exchange for market reach, technical expertise, vertical specialization, or local presence that the direct team can't deliver economically.
Types of channel partners
Resellers. Buy wholesale, resell with markup.
Distributors. Aggregate multiple vendors for smaller resellers.
System integrators (SIs). Implementation and customization services. Often resell software as part of engagement.
Independent software vendors (ISVs). Build complementary products that integrate with yours.
Referral partners. Refer customers without transacting.
OEM partners. Embed your product in theirs.
Channel sales vs direct sales
Direct sales. Your reps sell to end customers.
Channel sales. Partners sell to end customers.
Most B2B companies use both. Direct for strategic accounts, channel for broader reach or specialized verticals.
When channel sales makes sense
International expansion where direct sales is uneconomical.
Specialized verticals requiring technical depth (life sciences, financial services).
SMB market at scale.
Strong partner ecosystems already exist (Salesforce, AWS, ServiceNow).
Frequently asked questions
What is channel sales?
The model where third-party partners (resellers, SIs, ISVs, referral partners) sell your product to end customers in exchange for margin.
How does channel sales differ from direct sales?
Direct sales uses your reps to sell to end customers. Channel sales uses partners. Most B2B companies use both.
CTA
Channel sales adds complexity to account ownership. See how CRUSH handles named-account workflows across direct and channel motions. [Book a Demo]
