Want to sell software in China?

I bet you do. It’s a multi-billion dollar market (packaged software accounted for US$4.7 billion in 2008) that has seen positive growth even through the recession. Admittedly, there is a software piracy issue that shadows the country, still it’s a huge market and provides sales opportunities, especially in the B2B area.

A good enough reason for Avangate to partner with AliPay, China’s leading online payment service and part of giant Alibaba Group, so Avangate vendors can accept Alipay for China domestic payments in Chinese Renminbi (RMB or CNY).

I’m sure you all know that Black Friday traditionally marks the beginning of the holiday shopping season in the US. Well, nowadays big retailers are starting to promote Black Friday sales more than a week in advance. But that’s not the point of this post.

The point is that Black Friday (Nov. 27th) and Cyber Monday (Nov. 30th) are definitely useful dates to keep in mind.

Why?

Simple – in 2008, the Black Friday weekend brought along an 18% increase on the total spending in the US compared to the year before, which, given the context of the economic downturn, was a more than good figure. Other reports show a 15% increase in Cyber Monday online sales, with only 1% increase in Black Friday sales compared to the previous year. Either way, sales went up.

The joint Avangate – The VAR City webinar is just what the title says: a 60 minute crash course on channel management – touching on key things about selling through resellers, from what it takes to lay the foundations for a successful reseller network to the latest technologies available for channel management.

Are your products channel ready?

Channel expert Ken Beam @ The VAR City brought in his 25 years of experience in Strategic Partnership Management and Development. Channel readiness quiz aside (assuming you passed it :)), Ken pointed out you need to really understand resellers and what motivates them, what business model they work on (a reseller on a 70/30 model, where 70% of revenue comes from services will obviously be interested in services opportunities).

Software Channel Survey Results - download now!

As you know, we’ve done a survey on how the crisis is impacting the channel distribution in the software industry. We’ve looked at the results and – although not statistically representative (survey conducted on the internet on a self-selected sample)-, they make an interesting reading, showing some trends and providing tips & solutions for channel challenges.

Frankly, I was (pleasantly) surprised to see how much weight both ISVs and resellers give to joint marketing programs, measuring, efficiency, communication…  obviously no one can afford to pay lip service to these actions, they are for real.

Encouragingly enough, vendors and resellers acknowledge the same top channel challenges and consider similar solutions for tackling problems.

A recession is a good time to sit back and analyze your go to market strategy and, part of this, to think about going international, online or through a reseller network. You may be already selling internationally in same language markets/through a few reseller partners – now is a good time to expand.

So why is it good to go international NOW?

• Spread risk (don’t put all eggs in one basket).
• Increase market base (there’s a variety of markets out there, from small to large software markets in both established and emerging economies. Not to mention that an increasing online population makes it easier than ever before to sell software online).
• Increase revenue.

Let’s dwell on this last point for a bit. When it comes to building a partner network, you need to start right about now to be fully up to speed when the recession is over and things start booming again. It doesn’t mean that you wouldn’t get anything out of your channel during the recession (that’s not a promise either), but in general you have to be ready to support it for at least 6 months without seeing much return.

A week and a bit ago I attended an Online chat about Twitter and micro-blogging with Bob Walsh. I was actually @ home with my two young children and had joined in late (there were transcripts provided after – very useful. Thanks, Neil).

While I was trying to catch up with what had been said and make sense of the conversation, I realized that no matter what the announced theme was, people taking part could find something interesting to say, share, comment, digress to other topics and overall enjoy the experience. 25 folks joining in an online conversation on a work-related issue and having a good time – this would be my summary of the whole thing.