A pattern most B2B founders miss until they've tried to scale direct and burned through capital
A pattern most B2B founders miss until they've tried to scale direct and burned through capital.
In commoditized B2B markets with dispersed buyers, channel can beat direct. But only under two conditions, and a lot of companies miss both.
Condition one: the channel has to be treated as a direct extension, not a fulfillment layer. Trained the way you train your own reps. Given the same enablement, the same deal support, the same access to internal experts. The same accountability for outcomes. Leave them to figure it out alone and they'll underperform direct every time.
Condition two: the margin has to be high enough that the work is worth it to them. Distributors run their own P&L. If the unit economics don't compensate for the time, the relationship, and the opportunity cost, they'll sell something else from someone who paid them better.
A lot of failed channel programs failed on one of these two. Not on the model itself.
When both conditions are met, channel often beats direct on reach, cost, and time-to-market.
Most founders avoid channel because they were burned once. That's not a channel problem. That's a partner selection and partner support problem.
Pick distributors the way you'd pick a hire. Train them the way you'd train an AE. Pay them enough that the work matters. Then hold them to scorecards and quarterly reviews.
That's the channel model that wins.