The Channel Surfers
In this episode of "Channel Surfers," hosts John McCabe and Jeff Lennon are joined by Anders Noremo, founder of Third Party Trust (now acquired by Bitsight), to discuss his experience building a successful, 100% channel-focused sales model. In a candid, conversational discussion, Anders shares the strategic imperative and practical application of going all-in on channel, offering a masterclass in executive leadership. Speaking from his direct experience as a founder who built and sold his company, Anders shares the lessons he learned in leveraging partnerships to achieve explosive growth, contrasting it with the traditional direct sales approach. John, who worked with Anders, provides corroborating details and personal anecdotes. Key Discussion Points The Shift from Direct Sales to Channel Focus Anders recounts his early days as a founder in Chicago, where he started Third Party Trust to address the growing problem of third-party risk. Initially, he handled all sales himself and later struggled with hiring direct sellers. He found traditional SaaS sales tactics like cold calling and cold emailing to be inefficient, often starting potential relationships on a negative note. This frustration led him to seek alternative go-to-market strategies, which naturally guided him toward the channel. The Risks and Rewards of a Channel-First Model The group discusses the high-stakes decision to pivot to a 100% channel-focused business. - The Risk: Anders acknowledges that committing fully to a channel model involves significant risks, primarily the investment of time and focus. The biggest danger for a startup, where time is the most precious resource, is picking the wrong partner and wasting valuable months. Acknowledging John's point about risk, Anders adds that the move might not work, but the learnings from the attempt are invaluable. - The Reward: The rewards, however, can be immense. John emphasizes the principle of "you give, you get," explaining that being flexible and easy to work with builds trust and respect with partners, which in turn brings more deals. The "Unlock" Moments with Key Partners - Optiv: The turning point came around 2019 when Anders approached a major partner, Optiv. Instead of asking them to resell his product, he offered a novel proposition: he had customers who needed his solution as a managed service, and he wanted Optiv to be that managed service arm. While training the Optiv team, they were so impressed by the platform's ease of use and automation that they migrated all their existing accounts to his solution. This became his "big unlock" and created a powerful new sales angle: enabling Optiv's reps to sell their own company's managed service, powered by his technology. - GuidePoint: A similar "lucky" break occurred with GuidePoint. After a customer expressed a strong preference for Third Party Trust, a key player at GuidePoint reached out to Anders to resell the solution. To solidify the partnership and help GuidePoint stand up its own Third-Party Risk Management (TPRM) practice, Anders made a strategic move: he contracted GuidePoint to provide services for one of his own customers, effectively becoming GuidePoint's first customer for their new practice. He admits to "going negative" on this first deal, paying for it himself to prove his strategic, long-term commitment. Driving Adoption: The 100% Channel Mandate A pivotal moment was the decision to go 100% channel. Anders told his sales team they were no longer allowed to take deals direct; any direct deal would result in only 50% quota relief and 50% commission. - Initial Reaction: There was skepticism and concern from the sales team. - The Result: No deal ever went direct again. It forced a behavioral shift where reps became strategic. Since they had to use a partner, they chose partners who could bring them new deals and add real value. Within six months, strategic deal registrations from partners "went straight up to the right,"
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