Developing a Channel Strategy for the SMB Market? One Word: Microsoft

If you are serious about going after the SMB market, take a page out of Microsoft’s book.

Microsoft “owns” the small business market at the desktop level, in part because the Redmond giant takes good care of its channel.  Despite market power that would enable it to keep raising prices, Microsoft instead offers reseller and partner licenses inexpensively, making it a no-brainer to become – and stay —–a partner.
That’s something small businesses have noticed.

A conversation I had recently drove the point home. I had breakfast with a colleague. She and I are Board members together for a local technology trade association. She owns a small (10 employee) computer networking firm. Her company serves other small businesses and non-profits.  We were celebrating the 9th anniversary of her business.

Her company is a Microsoft certified partner.  She was telling me her frustration at not being able to find other complementary software products to re-sell and distribute. 

The reason?  Cost.

I quickly named several of the usual suspects for reseller/partner programs.  Anti-virus, networking, and business software providers – all seemed right for her business.

She said she’d love to be a certified partner for those companies.  But, she said, her firm couldn’t afford thousands of dollars for internal licenses for each one. 

She went on to ask, “Do you know how much Microsoft charges me, as a partner, to license ALL of its small business products  – every single one?  $199.  And I get 10 internal licenses – plenty for my 10-person firm.”

Other partner programs she has investigated cost a lot more — comparatively speaking.  Many require thousands of dollars for license fees.  That may seem like a manageable sum to a large corporation.  But a few thousand here and a few thousand there really add up when you’re a small business. 

She said, “Sure all these companies say they want to sell to SMBs….”  Her voice trailed off.  Her perception was that they don’t seem serious about wanting to go down-market.  They haven’t tried to step into the shoes of their channel partners, who are often themselves small businesses.

Now, don’t shoot the messenger.  I’m not saying these other companies aren’t serious in their commitment to the SMB market. I’m just relating one small business owner’s perception.  And we all know perception is reality in the eye of the beholder.

Maybe more corporations should take a cue from Microsoft.  Microsoft is one company that has aligned its strategy of going after the SMB market with its pricing structure and tactics for building a partner channel.  With every move, the software giant’s actions say it wants to serve the small business market.  For resellers and partners in the small biz channel, it’s a no-brainer to sign up with them.