The oft-cited statistic inflates partner-led sales, but a closer look reveals why the channel remains the most effective go-to-market model.
By Larry Walsh
The channel community needs to confront the issue of data distortion. Our industry thrives on data — it’s what technology companies do: ingest, process, refine, analyze, store, and report. Yet the channel often elevates data as a proxy for truth, treating statistics as insight when they frequently lack context or practical meaning.
Economist Charles Wheeler once said, “It’s easy to lie with statistics, but it’s hard to tell the truth without them.” And a quote from W. Edwards Deming corroborates the argument: “Without data, you’re just another person with an opinion.” These perspectives underscore why nearly every proposition, presentation, and report includes data points. However, numbers alone don’t always convey the whole truth.
One of the most popular — and misleading — statistics in circulation is that channel partners generate 70% of all technology product and service sales. I first heard this number in 2017 at a Salt Lake City conference, where it was used to illustrate the vastness of the channel’s role in the global IT market. On its face, the figure is striking: If true, it would mean that $3.6 trillion of the $5.2 trillion spent annually on technology flows through partners.
The reality is more nuanced. Virtually every product or service comes into contact with an intermediary at some point in the supply chain. Unless a company is extracting raw materials, its offerings inevitably pass through distribution, logistics, or partner networks. But that’s not the same as partners originating or closing sales.
In the Channelnomics 2025 Channel Chief Outlook survey, vendors reported that an average of 56% of sales originated with partners. This includes opportunities uncovered, led, co-sold, or closed by the channel. For some vendors, less than 5% of revenue comes through partner-led sales, while others claim total reliance.
Even companies promoting themselves as “100% channel” are rarely so. Microsoft — widely considered one of the most channel-centric vendors in the tech industry — generates only 5% to 10% of revenue through direct sales in a given year. Other channel-friendly brands similarly rely on direct motions to serve certain markets or accounts.
This raises the question: If partners contribute so substantially to sales, why do many CFOs and CROs remain skeptical of the channel’s value? Several factors are at play. Some executives harbor a bias that no one can sell as effectively as their internal teams. Others are reluctant to trust what they can’t see — i.e., if partner activity isn’t visible, they assume it isn’t happening. Cost is another sticking point; they question whether a partner’s actual contribution justifies discounts and incentives. And even when activity is visible, they often ask whether the effort and expense are worthwhile.
So why do vendors route transactions through partners at all, particularly if they’re already driving sales? It comes down to two things: relationships and economics. Partners often hold trusted customer relationships that vendors can’t displace. They may provide capabilities the vendor lacks but the customer requires. Vendors also benefit financially when they work through the channel: Partners absorb credit risk, ensuring that vendors are paid even if customers default.
Breaking down the mythical 70% figure doesn’t diminish the channel’s importance. To paraphrase Winston Churchill, the channel is the worst go-to-market model — except for all others. It scales, absorbs costs, reduces risk, and extends vendor reach in ways that direct models can’t. Partners assume roles that vendors are unwilling or unable to take on, from local market presence to specialized service delivery.
The lesson here isn’t to dismiss statistics; it’s to question them. Numbers such as the “70% channel” claim tell only part of the story. Leaders need to examine context, understand the dynamics behind the figures, and apply that knowledge in strategy and execution. When interpreted thoughtfully, data reinforces the channel’s indispensable role — not as a myth but as a measurable and irreplaceable force in the market.
Larry Walsh is the CEO, chief analyst, and founder of Channelnomics. He’s an expert on the development and execution of channel programs, disruptive sales models, and growth strategies for companies worldwide.
