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What are the pros and con's of various channel partnership types?

As a cloud based software platform as a service there is an opportunity to work with IT solution providers or consultants who sell into different verticals to expand market reach. What are the best models to use to structure such relationships and what are the pros and cons of each? Some key headings: Pricing, branding, certification, partner incentivization methods

2 Replies

Rob Gropper
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Rob Gropper Entrepreneur
Director at PetHero, SPC - Member at Eastside Incubator - Principal at Tuxedo Technologies Group
Babak; that's a pretty broad subject with a lot of variables. Are you thinking that your only sales model will be via channel partners? Who is your customer (characteristics) and what is the value (NPV - net present value as well as LTV lifetime value of a typical sale)? you can DM me if that's proprietary.
Babak Sardary
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Babak Sardary Entrepreneur
CEO+Co-Founder @Scoop® MAE: Helping Enterprises Mobilize Easily & Scalably
Rob, thanks for the message. So specifically I am thinking of a case that involved parallel direct and channel sales. Customers are industrial firms in the mid-large enterprise range looking to automate their business processes by rendering them into the mobile world. Hubspot uses an interesting model: you can purchase subscription to their platform directly from Hubspot or you can work with a company in their network of certified partners. In their case, you pay the same subscription price (price is transparent) and you pay this directly to Hubspot. Hubspot then kicks back a (I hear modest) commission to the partners (which in their case are mostly small marketing agencies) The agency then charges clients their own retainer which is for a basket of monthly services including configuring and maintaining the client's Hubspot account.

An alternative to this is if Hubspot would let their partners combine the Hubspot subscription fees with their own professional service fees and sell the package to the ultimate end-user client. In this case the hubspot fees would not be directly visible to the end-customer but I suppose that would preclude Hubspot from being able to go direct to customer.

I guess in my mind I am just trying to map out all the "classic" channel partner relationships that should be considered and their pros and cons. So I was hoping someone could point me to a resource online that discusses these models.

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