--- title: Does a Non-Innovative Sales Channel Hurt Your Innovative Strategy? description: If your strategy is positioning innovative products and your sales channel partner doesn’t share that strategy, you are going to have a problem. Here are a few tactics you can take to find a solution to this interesting challenge. image: https://www.advantexe.com/hubfs/sales-channel-innovation.jpg --- [![logo-advantexe-150.png](https://www.advantexe.com/hs-fs/hubfs/logo-advantexe-150.png?width=150&height=123&name=logo-advantexe-150.png "logo-advantexe-150.png")](https://www.advantexe.com) ![blog-banner-2022](https://www.advantexe.com/hs-fs/hubfs/blog-banner-2022.png?width=973&name=blog-banner-2022.png "blog-banner-2022") ### The Advantexe Advisor Blog - providing a deep and applicable understanding of the system of business. # Does a Non-Innovative Sales Channel Hurt Your Innovative Strategy? By Robert Brodo | May 1, 2018 7:44:50 AM | [![Share on Facebook](https://static.hubspot.com/final/img/common/icons/social/facebook-24x24.png)](http://www.facebook.com/share.php?u=https%3A%2F%2Fwww.advantexe.com%2Fblog%2Fdoes-a-non-innovative-sales-channel-hurt-your-innovative-strategy-%3Futm_medium%3Dsocial%26utm_source%3Dfacebook) [![Share on LinkedIn](https://static.hubspot.com/final/img/common/icons/social/linkedin-24x24.png)](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.advantexe.com%2Fblog%2Fdoes-a-non-innovative-sales-channel-hurt-your-innovative-strategy-%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [![Share on Twitter](https://static.hubspot.com/final/img/common/icons/social/twitter-24x24.png)](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Fwww.advantexe.com%2Fblog%2Fdoes-a-non-innovative-sales-channel-hurt-your-innovative-strategy-%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Fwww.advantexe.com%2Fblog%2Fdoes-a-non-innovative-sales-channel-hurt-your-innovative-strategy-%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=Does%20a%20Non-Innovative%20Sales%20Channel%20Hurt%20Your%20Innovative%20Strategy%3F) [![Share on Pinterest](https://static.hubspot.com/final/img/common/icons/social/pinterest-24x24.png)](http://pinterest.com/pin/create/button/?url=https%3A%2F%2Fwww.advantexe.com%2Fblog%2Fdoes-a-non-innovative-sales-channel-hurt-your-innovative-strategy-%3Futm_medium%3Dsocial%26utm_source%3Dpinterest&media=) [![Share on Email](https://static.hubspot.com/final/img/common/icons/social/email-24x24.png)](mailto:?subject=Check%20out%20https%3A%2F%2Fwww.advantexe.com%2Fblog%2Fdoes-a-non-innovative-sales-channel-hurt-your-innovative-strategy-%3Futm_medium%3Dsocial%26utm_source%3Demail%20&body=Check%20out%20https%3A%2F%2Fwww.advantexe.com%2Fblog%2Fdoes-a-non-innovative-sales-channel-hurt-your-innovative-strategy-%3Futm_medium%3Dsocial%26utm_source%3Demail) One of the scariest things about the complexities of the business world in 2018 and beyond is that we![sales-channel-innovation](https://www.advantexe.com/hs-fs/hubfs/sales-channel-innovation.jpg?width=265&height=177&name=sales-channel-innovation.jpg) can all easily lose our perspectives on big-picture issues such as making the right business decisions to support the execution of your strategy.  During the last decade, I have noticed the significant increase in the number of companies outsourcing critical functions such as Manufacturing, Supply Chain Management, and Human Capital Management.  Most of the time, the business logic suggests that outsourcing is more efficient, yields a higher quality product, and lets a company focus on its core capabilities rather than capabilities that it’s not very good at.  We only have to look as far as Apple – *perhaps the most successful company in the history of business* – to see that they focus what they are great at – *technology design* – and outsource all of their manufacturing to a company called Foxconn.  Foxconn delivers high quality, world-class manufacturing for Apple and the costs are much better than Apple could deliver themselves.  The added benefit is that Apple doesn’t have to bear any of the risks or costs of all the manufacturing equipment and facilities which would sit on their Balance Sheet as expensive, depreciating assets. The concept of outsourcing the *sales process* has been around much longer than outsourcing Manufacturing.  If you think about it, the entire idea of a retail store is an outsourced partner to a manufacturer whereby the manufacturer makes and sells a product to a retailer who then sells it directly to a consumer.  Other forms of “Sales Outsourcing” have taken the form of *Inside Selling and Meeting Making*, *Contract Sales Organizations*, and traditional *Channel Partner Resellers *and *Original Equipment Manufacturers (OEMs).* For many organizations, selling through the channel is cost effective and provides end-customers with a better experience. **Not all Channels Partners are Good Channel Partners** As the lead consultant for large manufacturing clients, I’ve had the chance to design, develop, and deliver a number of [Strategic Business Selling™](https://www.advantexe.com/strategic-business-selling-skills-business-acumen-for-sales-professionals) solutions for organizations selling their products through a sales channel.  Too often, I’ve noticed that many companies think all channels are equal, and the more channels you have, the better.  From a [Business Acumen](https://www.advantexe.com/blog/defining-business-acumen) perspective, this is not true, as *not all channel partners are good channel partners!* One major archetype that I’ve observed is that Manufacturers who design, develop, and deliver innovative products to their customers are frustrated with channels who don’t position innovation well.  Well guess what, if your strategy is positioning innovative products as your value proposition and your channel partner doesn’t share that strategy, you are going to have a problem. **What is the Value Proposition of the Channel?** To figure the best answer to this problem, you need to understand the situation.  Think about the value proposition of most channel partners. For many of them, they are risk-adverse resellers and who build their business models on *relationships* and *customer service*; not necessarily on the innovation of the product.  While the channel partner may advertise the fact they sell innovative products, the truth of the matter is they are *selling on a relationship based* on *someone else’s innovation*.  Because of this, many channel partners are less willing to take risks on new innovations and could potentially block your ability to reach your goals and objectives of getting innovative products to more customers quickly. And that make sense because they are less likely to take risks and live on the “bleeding edge” especially when it comes to technology-based solutions. **What’s the Solution to the Innovator’s Channel Dilemma?** Beside only selecting channel partners who share your same innovation-centric solution focus (which may be impossible if there are no other choices) there are a few tactics you can take to find a solution to this interesting challenge.  Here are three suggestions based on my research and observations over the years: Wait until your innovation is more mainstream The first suggestion is simple; just wait until your innovative solution is more mainstream and proven in the market.  A custom-centric channel partner will love nothing more than to tell their customers that this is a tried and tested solution worthy of their purchase. Keep your solution portfolio focused and simple If new and innovative solutions scare the non-innovative channel partner, then you can’t present to them and then expect them to sell a complex portfolio they are not comfortable selling.  You job is to keep the portfolio focused and simple and support the channel with things that are easier for them to sell and more profitable for you. Spend less time and cost on non-innovative Channel Partners Selling innovation is expensive; selling something more mature and well-accepted by customers shouldn’t be.  Spending too much on Marketing, Advertising, and Sales Enablement of your channel is something you can’t afford because it will eat directly into your margins. **Conclusions** Selling innovative solutions through a channel partner can be challenging if the channel partner doesn’t share in your innovation-centric approach.  If you find your business in that situation, you may need to develop a new channel partner portfolio or make the needed adjustments to lower your costs and frustrations while increasing your margins. [![artificial-intelligence-learning](https://no-cache.hubspot.com/cta/default/1153922/7151475f-a5b2-4e53-90c1-5af5674aae86.png)](https://cta-redirect.hubspot.com/cta/redirect/1153922/7151475f-a5b2-4e53-90c1-5af5674aae86) ![Robert Brodo](https://www.advantexe.com/hubfs/Blogs/rob-brodo-author.png) **About The Author** Robert Brodo is co-founder of Advantexe. He has more than 20 years of training and business simulation experience. [**](https://www.advantexe.com) [**](https://twitter.com/robrodo) [**](https://www.linkedin.com/pub/rob-brodo/0/334/574) COMMENTS ### SUBSCRIBE VIA EMAIL ### About Advantexe Advantexe is a gold medal winning training and performance improvement organization specializing in the development and delivery of interactive learning journeys using computer-based business simulations as the catalyst for learning and change in the areas of: Business Acumen, Business Leadership, and Strategic Business Selling learning solutions. 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