BEST PRACTICES FOR MANAGING MULTIPLE DISTRIBUTORS: SELECT THE RIGHT DISTRIBUTION PARTNER(S)

Choosing the optimal second distributor is critical. Look for a partner whose capabilities complement your existing distributor and fill gaps in your channel coverage. Key factors to evaluate include: contract vehicle portfolio (do they hold different contracts or reach different agency types?), strength in target segments (federal vs. SLED, civilian vs. defense), network of VARs (do they work with partners you’re not reaching now?), and value-added services (lead generation, marketing programs, technical support, financing options, etc.). Also consider company culture and size – a nimble, emerging-tech focused distributor might be a great complement if your current one is a large generalist (or vice versa). For example, if your primary distributor is a broadline firm, you might add a specialized government value-driven distributor known for hands-on engagement with new tech companies. Ensure the new distributor has a solid reputation for integrity and performance in the public sector (check references with other vendors if possible). It’s often wise to start with a non-exclusive agreement or pilot period to test the relationship. Clearly define expectations and KPIs for the new partner (e.g. how many new partners or deals they should generate in year one). A best practice is to align the onboarding of the second distributor with a specific opportunity or time frame – for instance, bring them on just before a new fiscal year or ahead of a big government program launch, so they can hit the ground with purpose. Lastly, consider any needed contractual adjustments: you may need to amend your contract with the first distributor if it contained exclusivity provisions (often simply giving notice of adding a new partner). Work closely with legal to structure agreements that allow multiple distributors without ambiguity.