GTM Financial Models
The Global Technology Distribution Counsel (GTDC) has long served to represent the global and regional distributors to the market and has a long history of providing research and analysis on best practices in distribution.
This paper provides an update from two previous papers published over the past decade. In 201x GTDC first documented the value exchange for the Distribution Route to Market. The paper presented the various components of the Vendor and Distributor relationship and documented the value of each component. The model built to analyze Go to Market contains a view of three Go to Market models. See section two for the historical go to market approach in high tech relative to the technology adoption curve.
Direct Sales Model – The model is built to drive growth through a direct sales team.
1 Tier Model – The model is built to have a direct sales team augmented by a direct value-added reseller (VAR).
2 Tier Model – The model is built to scale the go to market by augmenting the direct sales motion with distribution and their VAR community.
Each Go to Market has advantages and disadvantages. To assess your specific financial impact of a multi-tiered model, please click below.