Skip to main content

Preferred Vendor Guide: How to Become the Vendor Your Channel Partners Sell First

What is a channel partner, and why do partners sell some vendors first? 10 practical do's and don'ts to become the vendor your partners prioritise.

a cover page showing cannel partners trying to become a preferred vendor

Ask any reseller which vendor they lead with and they'll name one without thinking. That vendor gets mentioned first, registered first, and certified first.

Your channel partners already have a favourite vendor. The question is whether it's you.

A preferred vendor is the supplier a channel partner leads with when a customer needs a solution in that category. It gets registered deals early, more of the partner's certified staff, and a bigger share of the partner's services work.

Signing a partner doesn't mean it will sell for you. In the GTIA State of the Channel 2025 survey of 404 North American channel firms, 54% said they participate in one to nine vendor programs. In earlier years, many firms joined 10 or more. This guide covers what a channel partner is, what decides partners' priorities, and ten do's and don'ts to reach the top of their list.

It isn't a guide to designing a partner program; for that, see How to Build a Channel Partner Program Your Partners Will Love. Nor is it about portal and workflow friction, which our partner experience guide covers. It's about how you behave toward partners you've already signed: the daily decisions that make a partner choose you over the other vendors in its portfolio.

What Is a Channel Partner?

A channel partner is an independent company that sells, delivers, or recommends another company's product to its own customers, and gets paid through margin, fees, or commissions. Resellers, distributors, managed service providers (MSPs), systems integrators, referral partners, and affiliates are all channel partners. Unlike your own sales team, a channel partner has its own customers, priorities, and P&L, so you can't assign it a quota. You have to earn its attention.

In 2021, Microsoft said partners influence more than 95% of its commercial revenue. Omdia estimates well over 90% of tech purchases are partner-assisted in some way, and its 2026 forecast shows partners deliver most of the IT market in every region:

Region

Partner share of IT market, 2026 forecast

Insight for vendors

North America

61.1%

Lowest share, down from over 70% four years earlier

Asia Pacific

68.6%

Partners still deliver more than two-thirds of spend

EMEA

72.2%

Down from 80.1% in 2016

Latin America

78.1%

Highest partner-delivered share of any region

Global

66.7%

Down from 70.1% in 2025, though Omdia says partner influence is still rising

Each type of channel partner earns differently, so each prioritises vendors for different reasons:

Partner type

How they earn

What makes them prioritise a vendor

Referral partner or affiliate

Referral fees or commissions

Fast, accurate payouts and visibility into lead status (referral fees)

Reseller or VAR

Margin plus implementation services

Deal protection and a product that's easy to quote and deploy (100 reseller programs)

Distributor

Volume margin, logistics, financing

Clean multi-tier pricing and reseller demand (distributor management)

MSP or MSSP

Recurring management fees

Multi-tenant tooling and flexible monthly licensing

Systems integrator (GSI or regional)

Project and consulting fees

Technical depth, certifications, and complex projects to build

ISV or technology partner

Its own software revenue

Open APIs, co-marketing, and access to your customer base

For a full breakdown of partner models with examples, see What Are Channel Partnerships? 20 Types of Channel Partners.

What Makes Channel Partners Prioritise One Vendor Over Another?

Partners prioritise the vendors that make them the most money with the least risk and effort. The first is about why they leave. GTIA asked 404 North American channel firms, surveyed in December 2024, about their reasons for changing vendor relationships:

Reason for changing vendor relationships

Share of channel firms

Seeking better profitability

40%

Looking to enter new markets

30%

Business model is changing

26%

Prefer fewer vendors

26%

Selling more of their own IP or brands

20%

Current vendors no longer relevant

19%

Vendor financial viability uncertain

16%

Shifting from products to solutions and consulting

16%

Poor partner experience

15%

Looking to sell the business and exit the channel

13%

The second is about what keeps them. A 2021 Canalys survey of 130 partners found partners rate vendor programs at eight out of ten for importance to the relationship, and it ranks program benefits in three tiers:

Tier

Benefits partners value

What it tells you

Foundation

Rebates, deal registration, lead generation, account management, front-end discounts

Get these right first. 26% named back-end rebates the single most important benefit, and 66% put lead generation in their top five

Strengthen

MDF, training courses, partner portals, specializations

These help partners sell more once the economics work

Refine

Vendor financing, program branding, collateral, events, individual sales rewards

Lower priority; these refine a program that already works

Many vendors build in the opposite order: a branded portal and collateral first, deal protection and lead flow later. As one US partner told Canalys:

"Without deal registration or support we will not consider selling the product."

Who Inside a Partner Decides Your Priority

"The partner" isn't one decision-maker. Each role weighs vendors differently, and losing any one of them can push you down the list:

Role at the partner

What they care about

What loses them

Steps that win them

Owner or executive

Profitability, growth, fewer vendors

Thin economics, channel conflict

2, 3, 8

Sales rep

Easy to pitch, quick to quote, paid on time

Complex pricing, slow approvals

4, 5, 6

Engineer or delivery lead

Deployments that go smoothly

Weak escalation, surprise product changes

7

Finance or operations

Accurate, predictable payouts

Disputed rebates and commissions

10

Marketing lead

Campaigns that produce pipeline

Co-marketing that only builds your brand

4, 8

How to Become a Preferred Vendor: 10 Do's and Don'ts

To become a preferred vendor, protect partners' deals, make your product profitable for them beyond margin, send pipeline back, make every deal easy, and pay predictably. Each step answers a question partners ask themselves, consciously or not, when they decide where to spend their next sales hour. For each one, there's a short explanation and a table of what to do and what to avoid.

1. Measure Your Share of the Partner's Business

Most vendors track what a partner sells for them. Few know what share of the partner's business they represent, which is the number that tells you whether you're a priority or a line on a price list.

Do

Don't

Ask in every business review: which vendors make up most of your revenue, which do your reps lead with, and what would move us up?

Assume a signed partner is an active partner because the logo is on your partner page

Compare answers with behaviour: registrations per quarter, time from registration to close, and how many of the partner's staff hold your certification

Judge partners by the one large deal they closed last year

Review every partner in partner analytics or a partnership tracker, not just the ones who talk to you most

Let the loudest partners set your priorities

2. Make Your Product a Services Business for Them

Partners prioritise the vendor they can build a business on, and for most of them that business is services. An Omdia study for AWS found partners can earn up to US$7.13 for every US$1 of AWS sold, and only US$0.34 (4.8%) of that comes from resale margins, rebates, and procurement. AWS's partner profitability framework cites Canalys research putting managed-services gross margins at 30–40%.

Partner activity (Omdia for AWS)

Partner revenue per US$1 of AWS sold

Insight for vendors

Build (custom software and AI)

US$1.92

The largest slice; make your product easy to build on

Design

US$1.29

Give partners scoping templates and reference designs

Manage (recurring managed services)

US$1.27

Support multi-tenant management

Advise

US$1.16

Equip partners with business cases and ROI tools

Adopt

US$1.15

Share adoption playbooks partners can sell

Procure (resale margins, rebates, procurement)

US$0.34

Only 4.8% of the total; discount alone won't win priority

Total

US$7.13

Do

Don't

Publish a services blueprint: implementation packages, scoping templates, and managed-service pricing guidance in your partner portal (see PRM for SaaS)

Compete on discount alone and expect partners to stay loyal

Leave implementation work your partners can do to your partners

Let your own professional services team bid against partners for deployments

Show partners the services revenue other partners earn around your product

Hide how partners make money in case it invites a margin negotiation

3. Protect Their Deals From Your Own Team

Nothing drops a vendor down a partner's list faster than losing a deal to that vendor's direct sales team. As one US partner told Canalys: "Without deal registration or support we will not consider selling the product."

Do

Don't

Approve deal registrations within one business day and enforce them

Leave registrations pending while your direct team works the account

Pay your direct reps the same whether a deal closes direct or through a partner

Pay direct reps less on partner deals, giving them a reason to go around the channel

Write the conflict rules down before the first dispute (vertical channel conflict)

Decide each conflict case by case, depending on who escalates loudest

4. Send Pipeline Back

Partners keep score. If they bring you deals and you never send any back, you're one more vendor they have to sell. With 66% of partners in the Canalys survey ranking lead generation in their top five benefits, sending leads back is one of the strongest signals you can give. See how to get more lead referrals from partners and 12 lead generation channels.

Do

Don't

Route inbound leads in a partner's territory or specialism to that partner within hours, after qualifying them

Keep every inbound lead for your direct team

Map shared accounts and introduce partners to customers who need services you don't offer

Ask partners for account lists without sharing yours

Fund joint campaigns with partner marketing tools and track what they produce (channel marketing guide)

Run co-marketing that drives your brand but sends no leads to the partner

5. Arm the Rep Who Chooses What to Pitch

A partner's leadership signs the agreement, but individual reps decide which vendor to mention on a customer call. Partners in the Canalys survey put individual sales rewards in the lowest tier, so incentives alone won't win reps over. What does win them is being the easiest product to explain and the safest to recommend.

Do

Don't

Give reps a two-minute talk track, a live demo environment, and short role-based modules in a partner LMS

Send a 60-slide deck and assume reps will read it

Arm reps with how you compare against the other vendors they carry

Pretend partners don't sell competing products

Use SPIFFs for specific launches or pushes

Rely on permanent bonuses to make up for a product that's hard to sell

6. Remove the Effort Tax on Every Deal

In GTIA's survey, 26% of channel firms cited preferring fewer vendors as a reason for changing vendor relationships. When partners consolidate, the vendor that takes the most effort per deal gets cut first. Measure that effort per transaction: time to quote, approvals per discount, and days to payout.

Do

Don't

Use CPQ with clear pricing rules so partners can quote standard deals without waiting for you (what is CPQ?)

Require manual approval for routine discounts

Let partners get routine answers instantly, for example from Journeybee's AI copilot, Buzz, which answers from your own documentation

Make partners wait on a channel manager for answers that are already in your docs

Track time to quote and time to approval, and publish targets

Measure partner effort only through an annual survey

7. Back Their Engineers in Front of the Customer

A partner's reputation rides on every deployment. If your product makes their technical team look bad in front of a customer, no margin will win them back. Technical readiness starts in onboarding; our B2B partner onboarding checklist covers it.

Do

Don't

Give partner engineers sandbox access during partner onboarding and a named escalation route with response times

Route partner technical issues through your general customer support queue

Join partner-led deployments as a background expert when they need it

Take over the customer conversation when you join a call

Tell partners about known issues and upcoming changes before their customers notice

Let partners find out about breaking changes from their customers

8. Help Them Enter New Markets

In GTIA's survey, 30% of channel firms cited entering new markets as a reason for changing vendor relationships. A vendor that helps a partner grow into a new vertical, region, or buyer persona becomes hard to replace.

Do

Don't

Share vertical playbooks and reference customers for segments the partner wants to enter

Offer generic playbooks that ignore the partner's growth plans

Tie market development funds to campaigns in the partner's target segment (MDF guide)

Fund awareness campaigns with no pipeline target

Introduce partners to accounts in their target segment

Expand into a new segment yourself without telling partners already working there

9. Give Earned Advantages, Not Favours

Preferred partners want something their competitors don't have, but it has to be earned in the open. Perks handed out quietly breed resentment.

Do

Don't

Offer early access to new features and a seat on a partner advisory board that shapes the roadmap

Announce roadmap changes to partners at the same time as customers

Publish the criteria for every advantage, from specializations to co-selling priority

Give perks to whichever partner manager pushes hardest

Review advantages yearly as part of partner lifecycle management and remove them from partners who stop earning them

Grandfather benefits forever, regardless of performance

10. Make Every Payout Predictable and Provable

Back-end rebates were the top-ranked benefit in the Canalys survey, but a rebate only motivates a partner who trusts the calculation.

Do

Don't

Give partners a live view of pipeline, earnings, and rebate progress with partner incentive management

Send a quarterly spreadsheet partners can't check

Agree attribution rules up front with clear partner attribution

Re-decide who sourced a deal after it closes

Pay on a fixed, published date

Pay late and explain afterwards

How Do You Know If You're a Preferred Vendor?

You're a preferred vendor when partners register deals early, lead with your product, and build services around it. Use these signals to judge where you sit:

Signal

You're in the long tail

You're the preferred vendor

Deal registrations

Sporadic, often late in the deal

Steady, registered early in the cycle

Who raises your product

Only when the customer asks for it

The partner's reps lead with it

Certifications

One or two people, often lapsed

Sales and technical staff, kept current

Services attach

Partner resells licences only

Partner has a services or managed offering around your product

Business reviews

You chase the partner for a meeting

The partner brings a plan and asks for help

Where to Start: A 12-Month Plan

You don't need all ten steps at once. Sequence them by how quickly partners feel the change:

Timeframe

Focus

Steps

Signal it's working

First 30 days

Stop the trust leaks: deal protection, payout accuracy, honest rankings

1, 3, 10

Fewer disputes; registrations approved within a day

Days 31–90

Make selling easier: pipeline back, rep enablement, faster quotes

4, 5, 6

More partner reps registering deals; shorter time to quote

Months 4–12

Become part of the partner's business: services, delivery, new markets, earned advantages

2, 7, 8, 9

Partners launch services around your product and bring growth plans to reviews

Where Does a PRM Fit?

Every step above depends on shared, trusted data. Past a handful of partners, spreadsheets and CRM workarounds can't keep it consistent, which is where partner relationship management (PRM) software comes in, alongside your CRM (PRM vs CRM). Compare the 7 best channel partner management platforms. For the strategic side, see our channel partner management strategy framework.

Journeybee is an AI-native PRM with deal registration, onboarding, an integrated LMS, CPQ, and incentives in one platform, connected to Salesforce, HubSpot, and other CRM integrations. Its headless design lets partners work in a branded partner portal or directly in Slack, Teams, and email. See how Journeybee works or book a demo.

Published Updated

Related Articles

Painted illustration of OEM vs ODM: flowers with progress bars
Partnerships

OEM vs ODM: Key Differences, Examples and How to Choose (2027)

OEM vs ODM explained for hardware manufacturers: who owns the design and IP, pros and cons, real server, laptop and automation examples, contract terms, and how your manufacturing model shapes your OEM partnerships and channel program.

Frequently Asked Questions

A channel partner is an independent company that sells, delivers, or recommends another company's product to its own customers, and gets paid through margin, fees, or commissions. Resellers, distributors, MSPs, systems integrators, referral partners, and affiliates are all channel partners.

A reseller is one type of channel partner. Resellers buy your product and resell it. Other channel partners, such as referral partners, MSPs, or systems integrators, may never resell the product but still influence or deliver the sale.

It means your product is the one a partner's team leads with when a customer needs a solution in your category. Preferred vendors get early deal registrations, more certified partner staff, and a larger share of the partner's services work.

Profitability comes first: 40% of channel firms in GTIA's 2025 survey cited better profitability as a reason for changing vendor relationships. Partners also weigh deal protection, lead generation, rebates, ease of doing business, and whether the vendor helps them enter new markets.

In GTIA's 2025 survey, 54% of North American channel firms participated in one to nine vendor programs, with five to nine as the sweet spot. In earlier years, many firms joined 10 or more.