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The GTM guide to building SaaS channel partnerships
bvp.com
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But somewhere along the way, the channel becomes a compelling proposition — either because a go-to-market opportunity emerges organically, or because your business is actively seeking new revenue streams. “The channel can be a source of new revenue streams.” For MP, it was the former. In her first role in International Expansion Strategy at Asana, she was figuring out how to expand Asana geographically: what regions to prioritize, where to open up offices, and where to invest the team’s marketing dollars.
In Partnerships
What is a channel partner program? “A channel partner program is a strategic business initiative designed to leverage third-party companies or individuals (partners) to promote, sell, and distribute a company's products or services.” But while many types of programs fall into the bucket of “channel partnership,” not all partnership programs are alike. Let’s break down some of the most common ones below.
Depending on the size of your program, you’ll need a dedicated person or team who is responsible for managing the channel partner program. This team should have a mix of sales, strategic, and operational expertise to effectively recruit, onboard, and support partners throughout the program. “Finally, you need to offer compelling incentives and benefits to attract and retain channel partners.” Taking the time to define a clear value proposition for working with you — which could include things like competitive margins, marketing support, training, and resources — can help lay the foundation for a strong partner relationship.
2. Identify potential target partners “Identify potential partners that align with your offering and have influence over your target customers and begin to make a shortlist.” 3. Begin outbound partner recruiting
3. Begin outbound partner recruiting “Clearly explain your value proposition, what you're offering, and how the partnership can benefit both parties.” 4. Pitch your partnership program
Access to new customer segments: Partnerships can help you tap into new customer segments or industries that you might not otherwise have access to. For example, working with a financial services consultancy can provide access to new banking clients. “For example, you can partner with a technical services partner to provide custom integration development and implementation, which can help unlock big enterprise deals — allowing both you and your partner to cross-sell to each other's customers and provide more value.” Niche expertise:Partnering with niche experts in a particular domain or industry can add credibility and domain-specific knowledge to your offerings, making them more attractive to potential customers in that niche. For example, partnering with a healthcare consultancy who has deep knowledge around HIPAA and local regulations can help you penetrate that industry.
3. Begin outbound partner recruiting “Clearly explain your value proposition, what you're offering, and how the partnership can benefit both parties.” 4. Pitch your partnership program
MP: It depends on partner type and motion. For VAR’s, it’s typically a 20-30% margin but can be higher if in a market with high taxes (e.g. India or Brazil). For resellers, it’s closer to 5-10% — this is because they’re simply processing the transaction, whereas VAR’s are expected to provide post-sales support. “But typically in a referral partner program where the partner is not actually billing the end customer and is not on the hook for the renewal, you would give a one-time payment.” Q: How do you compensate your sales reps for deals sold through or by a channel partner?
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