A 2112 Primer on Channel Economics
Many vendors do a tremendous job of producing technology systems, which brings up the question of whether they really need intermediaries. Can’t they just sell directly to the end user? The answer is yes, but selling direct isn’t a practical strategy. By leveraging their channel, vendors can avoid hiring, training, and supporting the army of salespeople, engineers, and technicians needed to cover their total addressable market. Simply put: The channel is a means of accelerating sales and achieving scale while keeping costs down.