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Activation
Partner activation involves getting recruited partners to perform tasks like sharing a link, making a referral, or closing a deal. It differs from onboarding and is measured by activities such as the first deal registration, first closed deal, or consistent revenue generation. Defining an "active" partner is crucial and varies across programs.
Affiliate partnerships
Affiliate partnerships involve a brand paying third-party content creators to drive traffic and leads for their products or services. These creators often run blogs or make videos, promoting the company using a unique link. They earn a commission based on the traffic or sales from that link, helping businesses reach a wider, trusted audience.
The industry is worth billions and operates in both b2b and b2c spaces, offering high ROI as companies outsource marketing and sales to the affiliate partner.
Agency partner
An agency partner is a valuable ally, often sending leads or closing business for you. They might manage a client's program using your software and charge for their services. Agency partnerships can expand your marketing reach and generate referral revenue. They help you access new clients and add value for current ones. They can also handle payments and maintain customer relationships for you.
b2b partnerships
b2b partnerships involve collaborations between companies within the same industry or those offering complementary products and services. These alliances aim to foster mutually beneficial relationships that help both parties achieve their business goals. At a high level, b2b partnerships can be categorized into technology, channel, and strategic partnerships.
Channel partner
A channel partner collaborates with another organization to market and sell products or services indirectly. These partners can be vendors, affiliates, resellers, agencies, retailers, managed service providers, systems integrators, or similar entities. They often engage in co-marketing efforts. Channel partners help companies reach a wider audience and sell more products. A company can work with various types of channel partners simultaneously.
Co-marketing
Co-marketing is essential to partnerships, involving two similar businesses teaming up for a mutually beneficial marketing effort to reach new customers. Often confused with co-branding, co-marketing promotes existing products or services, while co-branding involves collaborating on a new product.
Co-selling
Co-selling involves bringing in a third-party partner to help close a sales deal. This partner supports the sales team, strengthening the pitch and boosting the chances of closing the deal. Ideally, a co-selling partner should have field credibility and explain why a SaaS product fits the customer.
Cross-selling
Cross-selling in sales involves encouraging customers to add complementary products to their purchases, boosting revenue and customer satisfaction. It requires understanding customer needs and suggesting valuable additions. However, irrelevant suggestions can lead to dissatisfaction. Similar to upselling, cross-selling is common in B2B SaaS, such as a CRM company offering document-management technology.
Customer acqusition cost (CAC)
Customer acquisition cost (CAC) is what a b2b company spends to gain a new customer. This includes marketing, sales, partner program costs, and other resources used to close deals. Calculating CAC helps companies assess the efficiency and sustainability of their acquisition strategies.
The formula for CAC is total sales costs divided by new customers acquired. Typically, CAC for partner-acquired customers is lower than those from traditional marketing due to shared efforts and pre-existing trust.
Direct sales channel
A direct sales channel involves selling goods and services directly from the vendor to the end user, bypassing intermediaries. This approach grants more control over the sales process and reduces overhead costs, but it lacks the reach and revenue potential of indirect sales. Many software companies use a combination of both strategies to maximize benefits.
Ecosystem
A b2b ecosystem is a network of partnerships and collaborations between businesses working together to stay ahead in today’s competitive market. By using the right strategies, forming strategic partnerships, and having a strong IT infrastructure, these ecosystems aim to increase value for everyone involved.
Ecosystem-led growth
Ecosystem-led growth centers on working with network partners for sustainable expansion and shared success. It uses partner networks to find new revenue opportunities, enter new markets, and drive innovation together, rather than depending on solo marketing efforts. By combining strengths, ecosystem-led growth keeps b2b companies competitive in today's interconnected world.
Go-to-market
A go-to-market (GTM) strategy is a comprehensive plan that outlines the steps and processes a company takes to bring its product or service to market. In the tech industry, where competition is fierce and innovation is constant, having an effective GTM strategy is crucial for success.
Ideal Partner Profile (IPP)
An Ideal Partner Profile (IPP) is a vital description of partners who can help your company achieve its goals. Important factors include understanding the partner's target market and audience, assessing their size and reach, identifying key decision-makers, evaluating product or service compatibility, and ensuring business models and values align. Documenting these elements helps create strategic partnerships that offer a competitive edge.
Independent Software Vendor (ISV)
Independent software vendors (ISVs) create, market, and sell software for various operating systems or cloud platforms, distributing their products often through marketplaces.
Indirect sales channel
Indirect sales involve selling products and services through partners like resellers, agencies, or affiliate marketing partners, rather than directly to customers. This method is often used alongside direct sales channels. Using indirect sales can help b2b companies grow by leveraging the networks of resellers or partners and reducing overhead costs.
Marketing Development Funds (MDFs)
Marketing development funds (MDFs) are resources provided by businesses to their channel partners to support sales and marketing efforts. These funds, often monetary, can be used for initiatives like brand awareness, lead list rentals, webinars, and lunch-and-learns. Distribution may be limited to top partners or open to all via proposals. Recipients usually need to report on usage and ROI to justify future funding.
Partner network
A partner network comprises a vendor's group of tech partners, affiliates, referral partners, and resellers who market and sell the vendor's products, earning commissions based on their agreements. Vendors support their partners by providing essential training, resources, certifications, and incentives.
Partner pipeline
A partner pipeline is a list of companies that fit your partnership criteria and could become technology or channel partners for your business. This means that they provide a product or service that complements your own and could potentially help you reach new customers or improve your existing business process
Partner-sourced sales pipeline
A partner-sourced pipeline refers to sales opportunities from partnerships. It is a collaboration between a company and external partners to generate leads, nurture relationships, and close deals. This pipeline can significantly benefit a business by expanding its reach and creating new growth opportunities.
Partner program
A partner program is a detailed document that outlines partnership opportunities for technology and channel partners. It includes partner types, incentives, and terms and conditions. This document should be regularly updated to match the company's changing goals.
Referral partner
Referral partners are channel partners who provide your team with qualified leads by referring clients from their customer base. They earn a percentage of the revenue when a deal closes. While referral partners may have a smaller audience than marketing partners, they often have direct, one-on-one relationships with their referrals. This typically results in highly qualified leads.
Reseller partner
A reseller partner directly sells a vendor’s product to their clients, unlike affiliate or referral partners who only engage at the beginning of the customer journey before handing them to the vendor. Reseller partners handle the entire customer relationship, making them more complex to work with. However, they provide access to a smaller but highly qualified audience, needing more support and resources.
Strategic partnership
Strategic partnerships are relationships between two entities, often companies, with products or services that overlap or complement each other. These partnerships, also known as alliances or joint ventures, aim for mutually beneficial outcomes. They often include both technology and channel collaborations, involving close cooperation on multiple levels.
Technology partner
A technology partner is a software vendor that integrates with your product. These partners either create integrations for your product or provide solutions designed for seamless connectivity, hence the term "integration partners."
glossary.
Activation
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