Pipex looks to recruit in indirect sales shift
Internet provider plans to add 100 to 150 resellers as it takes one-third of its business to the channel
ISP Pipex has realigned its channel set-up as part of a plan to shift one- third of its business indirect this year.
Pipex launched its partner programme last September to attract new VARs. It now plans to swell reseller ranks further.
Angus Peacey, channel director of Pipex, told CRN: “We are a predominantly direct operation, but we plan to move one-third of our business
indirect this year. We have less than 50 resellers, but we are in a recruitment phase and want 100 to 150 new VARs over the next year.”
Despite strong direct sales, Peacey claimed the firm can manage any direct and indirect sale conflicts.
“You will get isolated clashes [between direct and indirect sales], but when there is a channel play the
direct sales will back off. We are also assessing our value proposition so the channel can make margin,” Peacey claimed.
Pipex has three levels of channel partners: large referral partners, which receive a commission for feeding leads to Pipex; traditional resellers; and one solution partner, Cegedim, that works on larger or more specialist bespoke projects. These include the venture last month with the NHS to roll out broadband in pharmacies to handle prescriptions online.
Peacey said: “Resellers are able to offer customers a high level of service, while we capitalise on their expertise to drive our business forward even further. Security is also a huge consideration, and we are committed to delivering value propositions that will allow our partners to address the security issues that SMEs face.”
Gordon Davies, commercial director at Pipex reseller Compusys, said: “Pipex has been giving us good technical support. The channel recruitment will see more people talk about Pipex and raise awareness.”
Davies added that Pipex has handled its direct and channel conflict efficiently. The firm will not compete with resellers once it knows a partner ha s a customer relationship, he said.
“In the coming year I would hope to see more channel business development from Pipex and more leads to the channel,” Davies added.
Keith Humphreys, managing consultant at analyst EuroLAN, said: “Pipex is one of the bigger business ISPs. I think it is doing very well. It has a reseller target that sounds spot-on.”
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