How to Grow a Global Channel Program Beyond the U.S.

Language and cultural barriers: While English is generally accepted as the global business language, there are many places where it isn't common — even at the corporate/business level. The way business is conducted is also very different from region to region. For example, it's imperative that sales and marketing materials are not only translated, but also "localized" to address cultural nuances. This can include seemingly unimportant things such as colors that may have specific meaning, or stock images that could be considered offensive in some cultures outside of the United States. Knowing cultural differences is key before forging into any new market.

Compliance and regulatory differences: Additionally, it's essential to follow United States export regulations, in addition to local laws and regulations in the countries being sold to. For example, failure to follow United States export rules can lead to millions in fines, imprisonment and loss of the ability to export all together. Local laws are much the same, so be sure to thoroughly research regional regulations in new markets before expanding, so there's no risk of breaking any laws and dealing with severe consequences.

Corrupt or unsafe markets: Do your research on corruption and risk in target new markets. There are several organizations — such as Moody's, Dun & Bradstreet and the World Bank — that provide an index ranking of countries based on risk factors. These lists typically rank countries from 1 to 100, with 100 being the safest. Countries under 50% are considered "high risk" — approach these with caution. Unfortunately, most countries around the world fall below that threshold. Some major western markets barely rank above 50%. Channel leaders need to carefully consider the risk before boldly forging ahead into new countries.

Reputation matters: For channel leaders looking to dip their toes in the international market, the best place to start is with larger, more reputable companies that have a broader presence in the region than just one country. Distribution can help in this regard as many of the more regional distributors are well-versed in the local laws, taxation and how to best support their resellers. Consider starting with lower risk and more established markets before venturing below that 50% risk and corruption line.

Prioritize relationships: While there are always going to be differences in new markets, channel partners and customers outside of the United States often act more like family than associates. Relationship building is a huge and rewarding aspect of working with some international customers, and global channel partners will often want to know you on a personal level before doing any business. Additionally, channel partners often have strong existing networks and partnerships that they may introduce you to.

Hire local: Another good practice is to invest in hiring local channel managers that are familiar with the nuances in a particular country or region and have relationships with key channel partners. That tribal knowledge is invaluable and can help avoid costly mistakes, as well as ease the challenges of entry.

Know the cost: Finally, factor in the extra cost of doing business in countries where you have to provide additional margin or discount to support the local partner doing extra work on your behalf, such as localization of sale and marketing materials or providing support services. That said, the cost of employees or offices (and the cost of doing business via the channel) tends to be lower outside of the United States.