12 Channel Lessons from 2024 for 2025

The end of the year presents an opportunity for celebration and introspection. It’s been a tremendous year, with highs and lows, triumphs and disappointments, opportunities and challenges. With such dynamism, it's hard to walk away without learning a thing or two.

In 2024, Channelnomics was deeply involved with numerous technology vendors, distributors, and partners worldwide. Our team traveled through the Americas, Europe, and Asia, engaging in strategic planning sessions, fostering partner relationships, and promoting knowledge and experience exchange. These efforts have strengthened our ties and improved our collaborative strategies with pivotal industry players.

These countless interactions have yielded critical insights. Here are 12 lessons from 2024 that will inform the future of partnerships in 2025.

1.            Legacy is a Powerful Inhibitor: Teams often fall into the trap of resisting change by clinging to the phrase, "That's not how we've done it before." Overcoming an organization's entrenched culture to implement new changes is challenging, as it can restrict innovative thinking and hinder progress. To move forward, it's crucial to reach a consensus on the necessity and reasons for change, regardless of how much it deviates from established practices. Without a clear vision of the future, convincing others of the need for change can be difficult.

2.            Complacency is Comforting: Making money is great, but businesses and their teams cannot be lulled into a false sense of security because they’re making money. Channel leaders must recognize potential changes in market conditions that could disrupt their success. Making changes after reaching a tipping point is too late. Channel leaders should make contingency plans for the future, even if things appear good now and in the foreseeable future.

3.            Decisions Require Real Evidence: Business theorist W. Edwards Deming, a source of inspiration at Channelnomics, famously stated, “Without data, you’re just another person with an opinion.” In the channel industry, the importance of data in validating strategy, plans, and performance is well acknowledged. However, there is a prevalent issue of relying on substandard data and metrics. The industry must improve its collection and refinement of real data into actionable intelligence. Additionally, it is essential to engage in transparent discussions about the implications of this data. Making decisions without robust data risks disappointment and potentially more severe consequences.

4.            Strategy is Meaningless Without Execution: A common question when reviewing or designing channel programs is, "Will this work?" Yes, they can, but the channel team is responsible for executing the strategy and program. Strategies provide a roadmap, a foundation for your plans and models, but their success hinges on the channel organization's ability to implement and execute them effectively. Without the dedicated commitment and enthusiasm of the vendor organization and the channel team, any channel strategy or program will likely be ineffective. 

5.            Tools are Useless Without Strategy & Planning: This year, I've spoken with nearly every major channel management vendor in the market to discuss their struggles in demonstrating value to customers. The core issue is straightforward: many vendors market their applications as complete solutions, suggesting that mere adoption will automatically enhance partner success. However, the truth is that these are potent tools that demand more foundational thinking, planning, and change management than vendors typically acknowledge. We must begin with thorough planning and clear definitions to optimize channel performance effectively, then leverage the available tools to streamline processes and enhance experiences.  

6.            De-risking the Go-To-Market is Imperative: Channel leaders must ensure that partners are well-equipped and confident in their collaborations with vendors. Often, partners lack the resources and risk tolerance that vendors possess, which can hinder their success. It's crucial for channel leaders to clearly define market opportunities and minimize the risks for partners engaging in the marketplace. This involves instilling confidence in partners that their investments in the partnership will likely yield significant returns. Vendors can facilitate this by offering more precise guidance and support, making it easier for partners to reach and serve customers effectively.

7.            Speed is Elusive: To paraphrase Ernest Hemmingway about channel performance and change, it happens “gradually, then suddenly.” Everyone is in a hurry to generate results. The number of companies and people who approached Channelnomics in 2024 with a need for immediacy is unprecedent, and it’s because they’re under pressure by their management to deliver results. Channel programs and partnerships require time to develop. Yes, you can drive sales relatively quickly with partners if you’re using them as the transaction point. But building meaningful and productive relationships in which partners act on your behalf takes time. In 2025, we must find ways to create the time and space required to build fruitful partnerships.

8.            Always Strive for Simplicity: I often describe channel programs to rule books. They outline the vendor-partner go-to-market relationship's roles, responsibilities, resources, and limitations. Frequently, vendors design these rules to favor themselves by adding complexity. However, partners prefer simplicity. Channelnomics has found that ease of doing business drives productivity more effectively than monetary rewards or incentives. Partners are more likely to work with vendors that are easier to deal with, even if it means slightly lower profits. Vendors should commit to continually simplifying their partner programs and relationships to enhance partner engagement.

9.            More Isn’t Better: Many vendors aiming for future success believe that acquiring new and more partners is the key. This notion is not new; vendors have long believed that more or different partners are better, assuming that ideal partners are out there, just waiting to be discovered. However, the landscape for partners is evolving. Good partners actively invest in their businesses, develop new capabilities, and craft unique value propositions. Additionally, most partner programs are becoming overpopulated, which leads to conflicts and diminished sales potential. In 2025, vendors should reassess their existing partners and explore ways to optimize their partner networks, creating clearer pathways for mutual success.

10.       People Always Matter: While the focus on automation and artificial intelligence grows and younger buyers lean towards purchasing through digital marketplaces, it's crucial not to overlook the value of human interaction. Despite the trend towards digital solutions, with enterprises increasingly turning to hyperscalers for applications and resources, human-to-human relationships remain essential. The channel account manager (CAM) is a pivotal figure in this landscape, playing a critical role in fostering partnerships and driving go-to-market strategies. While tools can simplify processes, the people behind these tools truly drive and sustain successful partnerships.

11.       No One Can Do It All: A key insight from 2024 is the increasing importance of ecosystems in our industry. This term has largely replaced "channels" and "partnerships" to emphasize the interdependence of companies working together to meet comprehensive customer needs. Despite this shift, many vendors continue to prioritize their interests, adopting a "me first" approach. Acknowledging that no single vendor or partner can fulfill all customer needs alone is crucial. We must connect with the ecosystem and actively participate, support, and enable activities within it to reach greater success and value. True progress lies in mutual collaboration and shared outcomes.

12.       Value is the Story: We cannot take for granted that the value we offer is obvious or easily understood. Nor can vendors assume that having a good product alone will automatically attract partners and generate revenue. As an industry, we must improve how we articulate the value propositions of our products and go-to-market strategies. This involves clearly defining the total and serviceable addressable markets and the overall economic impact on our companies and partners. To effectively engage partners and customers, we need to consistently, transparently, and authentically communicate our value, reinforcing this narrative repeatedly to secure their buy-in.

Reflecting on these lessons from 2024, it’s clear that success in the channel is not solely about strategies and tools but also about adapting to change, understanding value, and fostering value-based relationships. The evolving landscape requires us to reassess and refine our approaches to remain effective continually.

In 2025, we must prioritize these lessons and ensure they guide our operations and partnerships. By embracing these lessons, we can enhance our collaborative efforts and drive sustained success in the ever-changing technology market. Let's move forward into the new year, leveraging these lessons to build a more robust and adaptable channel ecosystem.

What are your lessons from 2024? What learnings are you taking into 2025? Share your thoughts with me: lmwalsh@channelnomics.com.

Larry Walsh is the CEO, chief analyst, and founder of Channelnomics. He’s an expert on the development and execution of channel programs, disruptive sales models, and growth strategies for companies worldwide.