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Is a partner portal in fact a bad strategy for businesses in different industries? In the competitive global market, channel management has become a significant way to thrive and increase profits. This strategy has always been linked with the use of partner portals because of their reported benefits to partners through increased communication and collaboration. However, two arguments have been established to dissent the claim that these web-based applications are critical to a successful channel.

The first argument is that parent companies lack the necessary control of their channel partners. Despite the use of these portals as pipelines that allow manufacturers gain access to data regarding their channel’s sales reports, activities, and over all  performance, the information they garner remain insufficient. Supposedly, in an ideal set up, the parent company will still be able to close a good percentage of the sales because of the fact that inquiries made by some customers will not be answered in full by partners. When it comes to the products, manufacturers still have the upper hand and can provide the necessary detailed answers customers are looking for.

Portals should be used to share technical information on these types of questions among channel members. There is a need to provide more direct knowledge to the parent company so that real, concrete changes in programs can be made. This means created programs would increase partner and vendor productivity in a measurable way.

The second argument is that the risk in investing in it outweighs the benefits. The investment made on such a web based application is burdensome. The need to create an effective distribution network is challenging enough as it is. With regards to branding identity as well as intimate technical knowledge, critics claim that it is unrealistic to train partners to sell a product or service because they do not possess enough knowledge about what they’re selling.

It would be up to companies to decide whether or not they agree with these arguments. Their job is to conduct thorough research regarding these applications and whether or not they are appropriate for their business.