Today’s SaaS companies build their brands, expand their customer base, smartly utilize their resources, and scale their revenue through channel partnerships
More than 40% of the $5 trillion global IT market is in North America. It accounts for more than 10% of the United States national economy and 11.8 million jobs. These numbers are possible because of successful channel partnerships within the SaaS ecosystem, which is made up of software publishers, computer systems design firms, computer programming service suppliers, and facilities management companies.
Carahsoft, a government IT solutions provider, resells DocuSign’s e-signature services to the public sector. Consequently, 800+ local, state, federal, and tribal agencies use DocuSign. A SaaS channel partnership similar to this benefit both partners and helps them generate revenue
“We’re seeing more and more early-to mid-stage SaaS companies look to partnerships as a means to achieve their growth goals,” said Tyler Calder, Vice President of Marketing at PartnerStack, a partner management platform. “For many SaaS companies, getting started with an ambassador, affiliate, or referral program is the first step in developing a partner ecosystem strategy.”
Which Type of SaaS Channel Partners Bring in the Revenue?
System Integrators- This kind is ideal for complex products that need integration into an existing IT ecosystem.
Distributors- They provide an established distribution channel for their vendor’s product
Value-added resellers- They contribute to customer acquisition in new markets.
Managed service providers (MSP)- They monitor and maintain the IT infrastructure.
IT consultants- They provide independent IT advice, project management, and administrative services
SaaS companies generated 21% of the total revenue through channel partnerships, says SaaS Capital, in a 2018 survey.
Your Muse List for SaaS Channel Partnership
Are your C-level executives ready to commit to a channel partnership
? Also, consider human resources and budgeting to dedicate to the partnership.
Does your product appeal to your prospective channel partner? Ensure that your partner can get support and training to sell your product independently.
Focused sales & marketing teams-
Do your sales and marketing teams have enough enablement material to help the channel partner sell your product effectively
? You may want to consider preparing case studies, videos, scripts, and ICP documents in advance.
Try consultation or an expert opinion to figure out what kind of support you can provide to your partners through your sales, marketing, and success teams.
Though most partnerships start as an experiment for growth SaaS companies are steadfast today. They are redefining the way businesses operate and scale while acting as the backbone of revenue generation.