Channel
In B2B sales, a Channel is any external route through which a vendor's products or services reach end customers, including resellers, value-added resellers (VARs), distributors, agents, and system integrators. Companies build indirect channel strategies because partners provide market reach, local expertise, and implementation capabilities that a direct sales force cannot economically replicate. Managing a channel effectively requires visibility into which partners are active, which deals are in progress, how performance compares across tier levels, and where channel conflict with direct sales is occurring. CRM and Partner Relationship Management (PRM) systems are the operational infrastructure that makes a scalable indirect sales model possible.
A channel can be single-tier, where the vendor sells through partners who sell directly to end customers, or two-tier, where distributors sit between the vendor and a wider base of resellers. Each model trades direct control for reach. The vendor gains access to markets and customer segments it could not serve economically on its own, and in return depends on partners to represent the product accurately and hold price discipline. Keeping that trade-off healthy depends on clear rules of engagement and shared visibility into partner activity, which is why channel programs run on CRM and PRM systems rather than spreadsheets.
Frequently Asked Questions
It is any external route a vendor uses to get products to customers, such as resellers, distributors, VARs, agents, or system integrators. Selling through these partners is called indirect or channel sales, as opposed to using a direct sales force.