Should We Just Call Master Agents Distributors?
… herald of the changing times in distribution.
“It was a smart move for ScanSource to find a business model focused on cloud-based distribution underpinned by a residual commission model. It’s a model which ScanSource’s CEO said could soon be worth more than their entire hardware distribution business,” Kieninger said.
However, distis and master agents are moving toward one another in a few key areas. Telarus’ Murray said they are seeing increased overlap in their technology offerings as products move to the cloud. Avaya and Cisco, for example, have migrated away from much of their hardware.
“[Previously] distis were equipment and master agents were technology and all of these other things,” he said. “Well, now those are the same thing.”
D&H Distributing co-president Michael Schwab agreed that distis are working to shake up their business model to be less “transactional.”
“We want to continue to lean in to make sure our sell-out capabilities are more than the hardware itself, but all the integrated, value-oriented services that go along with that,” Schwab said.
In addition, Murray said suppliers increasingly treat master agents and distributors in a similar fashion. He said he and distributor executives occupy many of the same partner advisory councils. However, Murray said he still feels a disconnect in the business objectives master agents and distis are pursuing.
And the ‘Subs’?
The direct selling firms that leverage master agent contracts are asking similar questions about their identity. For one, the term “subagent” has fallen out of favor. While subagent might correctly describe a technology consultant’s relationship with a master agent, it doesn’t necessarily describe the company’s entire business model. Many agents hold their own direct contracts with suppliers or are pursuing them, which makes them much more than a subagent.
Moreover, it’s rare to hear an agent call themselves an “agent.”
“We hardly ever call them sales agents. If you call them a sales agent, somebody’s quickly correcting you to call them a partner,” Five9’s McMillan said.
Ultimately, channel partners push back on the idea that they serve as salespeople for a vendor, which the term agent might imply. More than ever, partners are emphasizing their vendor agnosticism. They want to describe themselves to customers as someone who will help them evaluate vendor options.
For example, more and more agencies are calling themselves consultancies. For many firms, Avant’s “trusted adviser” moniker has stuck. Vince Bradley, AppSmart’s vice president of corporate development and general manager of energy services, said AppSmart uses the term “technology adviser” instead of “agent.”
“The old ‘agent-VAR’ categorizations are backward-looking,” Bradley said. “They don’t recognize what we see as a huge opportunity in the future.”
And for Bradley, that opportunity means bringing together all form of business technology services into a single platform. He said his team aims to transform legacy partner models like telecom agents, IT VARs/MSPs and energy brokers into “multi-ecosystem players.”
“In the end, they’re all advising businesses to help them use business services and technology to solve tough problems,” he said.
The conversation about branding will undoubtedly continue throughout 2021 as partners seek consensus about how to describe the master agent channel.
Weigh in below with any comments or suggestions you have to offer.
The industry should continue to use Master label and get on with business. The term has many definitions but “master” designates the agency as being highly qualified; a high level of expertise, just as a “master” craftsman i.e. welder, electrician, etc.
It is time for adult professionals to get back to business, quit being offended by whatever the term of the day is, and respect everyone as you yourself would want to be respected. Quit feeding into the drama and write an article on new services, new techniques on cold calling, or any topic to help grow our customer base.
Respectfully,
Davis Adams
This is a media generated NONTROVERSY… nobody cares about the verbiage but the person who wrote this column.
I have worked in this sector for 27 years and no a single person, company or agent has ever raised this topic or presented it as an issue.
This is a great example of media manipulation of a story.
Interesting debate, but it feels a bit like a “tempest in a teapot”. The primary task, it seems to me, is keeping our companies relevant as technology continues to move forward at an increasing pace and provide solutions that solve our clients’ business problems. Pick what you like….Master Agent, Technology Service Provider or whatever. Rebranding is a relevant management task…but a minor one in this case, in my opinion.