How to Maximize Long-Tail B2B Channel Partner Revenue – Part 1

It is not uncommon for 80% of your channel revenue to come from 20% of your top partners, and it’s natural to focus your resources on those larger accounts that do most of the heavy bottom-line lifting. But doing so at the expense of your long tail partners—those who spend below a certain revenue threshold, generate a large volume of small, low-volume transactions, and represent the other 20% of your revenue—deprives you of valuable revenue, retention, and market share expansion opportunities.  

Many companies write long-tail channel partners off because they believe the juice isn’t worth the squeeze, or they lack the resources or know-how to service them effectively. 

Can you afford to ignore any channel partners or sacrifice 20% of your revenue? Of course you can’t.  Which is why we’ve invested heavily in an advanced tech stack, data and analytics, and account scoring expertise, all of which gives us prescriptive insights to help you mine your long-tail channel partners for gold.   

In this series, we’ll show you the untapped lost revenue potential long tail channel partners have to offer and how to create and execute on a strategy that will work for the long haul. 

3 Reasons Long-Tail Partners Are Worth Cultivating

With head-snapping economic news emerging what feels like hourly, sales cycles getting longer, and sellers’ influence in the sales process changing, it’s more important than ever to get the most out of your existing partners. After all, analysts estimate they represent 70-80% of your revenue.

Where better to start mining than your long-tail channel partners? They might be small, but they’re yours, and their collective growth potential is mighty. And if they’re buying from a competitor, there is share of wallet for you to gain.

Yet long-tail partners often receive sporadic or—worst case—no attention, leaving their needs unmet and them unsatisfied. Many just go dormant, taking up resources and bearing little—if any—fruit.

Here are three reasons they matter:

1. You’ve already paid the price to acquire and equip them. “The hard costs for keeping consistently non-performing partners are relatively low, but the opportunity costs can be significant,” says Forrester VP, Principal Analyst Stephanie Sisser. In short, you’re playing with house money, and it’s yours to lose.

2. They can help you grow market share. While their individual impact may feel like a ripple, their collective impact—even if it’s a few percentage points of growth—can be significant. Service them efficiently and effectively, and you’ll create a steady stream of reliable revenue and a loyal partner base.

3. They are primed for retention and upsell. Up until now, they’ve sat on the back burner, at risk and neglected. With intentional, consistent contact and nurturing, you can create loyal, engaged partners who are more likely not only to prioritize your products but invest more in offering them. Compared to the cost and likelihood of acquiring a new partner, investing in your tail partners is the smarter move. As your mutual investment in each other grows and your relationship blossoms, the more likely they are to stick around for the long haul.

True or False? Long-Tail Channel Partners are Impossible to Manage.

FALSE. Even if you recognize the growth potential of your long tail partners, because they’re small and plentiful, we know managing them—let alone rocking their world—can feel unwieldy and overwhelming.

You may not have the know-how or resources in-house to serve them in a sustainable way that both maximizes their revenue contribution and your resources. The good news is you don’t have to choose between serving your long tail and large partners, and you don’t have to do it alone. You just need to be intentional and strategic about applying your sales resources to service them, designed to optimize their spend.

Start with this question: “Is my channel team spending the right amount and kind of time with the right partners?” From there, segment your partners by spend, growth potential, and future needs. Next, identify which tail accounts are worth your reps’ time and determine whether digital or inside sales resources are best suited to nurture them. Then, apply tech and AI to make sure your reps receive the coaching they need, including how to spend more time talking to accounts that are most likely to grow.

By assessing your current sales resource allocation and profiling and ranking your long tail partners, you can pinpoint the level of service your accounts require, ensure you’re applying the ideal sales resources to the right accounts, and provide the right kind of rep training needed to support each channel partner segment.

Do you see the vision for investing in long-tail channel partner gold? If so, we can help make your vision reality.