When To Call For Help: Choosing Vendors

Adrian Tilston September 22, 2024

If you have ever worked with an IT consultant, a managed service provider, or a cybersecurity advisor, you have probably asked yourself: how does this person get paid, and is their advice actually free? The answer matters, because the revenue model behind the advice shapes the advice itself. Understanding how the technology sales ecosystem works will make you a better buyer.

The Traditional Tech Sales Process

Most enterprise technology follows a predictable sales cycle with six steps:

  1. Lead generation. The vendor identifies potential buyers through marketing, events, cold outreach, or partner referrals.
  2. Discovery. A sales rep or engineer learns about your environment, pain points, and budget.
  3. Solution design. The vendor builds a proposal tailored to your stated needs. This is where the pitch deck comes out.
  4. Proof of concept / trial. You test the product in your environment (or a sandbox) to validate claims.
  5. Negotiation and procurement. Pricing, contract terms, and SLAs are finalized.
  6. Deployment and onboarding. The product is implemented, configured, and handed off to your team.

This process works when you already know what you need and are evaluating a short list. It breaks down when you are early in the decision-making process, unsure of the right category, or comparing fundamentally different approaches.

The Indirect Channel

Most technology vendors do not sell exclusively through their own sales teams. They rely on an indirect channel — a network of partners who sell, implement, and support their products. The indirect channel includes several types of partners:

Resellers

Resellers purchase licenses or subscriptions from the vendor (often through a distributor) and sell them to the end customer, typically at a markup. They handle quoting, procurement, and sometimes basic support. Their margin comes from the difference between their buy price and your sell price.

Referral Partners

Referral partners do not resell the product. Instead, they introduce qualified buyers to the vendor and receive a referral fee or commission when the deal closes. This model is common in cybersecurity advisory, where a consultant evaluates your needs and recommends a specific vendor.

Systems Integrators

Systems integrators (SIs) build and deploy solutions that combine multiple vendor products. They make money on professional services — design, implementation, migration, and customization. The technology is often secondary to the labor.

MSPs and MSSPs

Managed Service Providers (MSPs) and Managed Security Service Providers (MSSPs) bundle the technology into an ongoing service. You do not buy the product directly — you pay a monthly fee that includes the platform, management, monitoring, and support. The provider holds the vendor relationship and passes the capability to you as a service.

Distributors

Distributors sit between vendors and resellers. They aggregate products from many vendors and provide logistics, credit, and technical pre-sales support to the channel. You rarely interact with a distributor directly, but they are a critical part of how pricing and availability flow through the ecosystem.

Monthly Recurring Revenue

The shift from perpetual licenses to subscription models has changed how the channel gets paid. In the old model, a reseller earned a large upfront margin on a one-time sale. In the subscription model, revenue is smaller but recurring — the partner earns a percentage of the monthly or annual subscription for the life of the contract.

This creates an important incentive: partners are motivated to recommend products that renew, not just products that close. A good partner will recommend technology that actually works for you, because if you cancel after six months, they lose their recurring revenue. A bad partner will recommend whatever pays the highest margin regardless of fit.

Real-World Application

When you bring in a technical advisor — whether that is a consultant, a VAR, or an MSSP — here is what to understand:

  • Their advice is not free. Even if you are not writing them a check, they are being compensated by a vendor, a distributor, or a referral fee. That does not make the advice bad, but it means you should understand the relationship.
  • Ask how they get paid. A trustworthy advisor will tell you plainly. If they are a reseller, they earn margin on the sale. If they are a referral partner, they earn a commission. If they are an MSSP, the technology is baked into their service fee. Transparency here is a green flag.
  • Evaluate breadth of portfolio. An advisor who works with one vendor will always recommend that vendor. An advisor with relationships across dozens of vendors is more likely to match the right product to your problem, because they get paid regardless of which one you choose.
  • Understand what you are buying. Are you buying a product with implementation services? A managed service? A referral to a vendor? Each model has different implications for ongoing support, ownership, and cost.

When to Call for Help

You should bring in outside help when:

  • You are evaluating a category you have never purchased before and do not know the landscape.
  • You are comparing more than three vendors and need someone to cut through the noise.
  • You do not have the internal expertise to evaluate technical claims or run a proof of concept.
  • You want negotiation leverage — channel partners often have access to pricing and promotions that are not available to direct buyers.
  • You need implementation support and do not have the staff to deploy and configure the product yourself.

The right advisor saves you time, money, and bad decisions. The wrong one adds a layer of cost and bias. Knowing how the system works is the first step to telling the difference.

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