Hey folks, at SaaS Connect, I put up this slide (attached) as a joke about how bad solution partner programs can be thinking we’d all share in a laugh. It hit a nerve apparently in a way I didn’t really intend. I guess a little of my frustration came through from seeing program after program get mired down in this mess.
Then I got a little triggered by
@Rob Rebholz saying partner programs should be “simple” on LinkedIn today… So in penance for my mistakes, I’ll put more empathy into this.
Why are partner programs are so complex? Shouldn’t they be designed to make it as easy as possible for the customer to buy your product?
Let’s have faith that the program is built up over time to solve problems. Partner programs feel “complex” when reacting to real & justified but secondary problems of an
INTERNAL team, instead the primary, critical
EXTERNAL problem of selling the customer the product they want.
1. Certifications. Hubspot for e.g wants agencies to be certified, even when onboarding their own to Hubspot. Customer success were fighting high churn rates when customers weren’t set up correctly by untrained agencies.
2. Deal registration. Typically, deal registration is meant to deconflict the partner with the sales team, the sales team’s commissions, and who communicates what to the customer. In some cases, also with other partners.
3. Margins. Margins are a zero-sum game between the solution partner, partner team, and sales person.
4. Onboarding. Customer success teams and solution partners are both paid to make customer successful. The overlap creates misalignment.
The heart of the problem is that because of the nature of subscriptions, it is very difficult for partners to just sign up, pay for and implement your SaaS for a customer. Selling software through partners requires humans, and each human is an agent that requires deconfliction.
A SOLUTION PARTNER is forced to refer customers to a SALES AGENT to get an account. Because routing a partner referral to a sales agent is non-trivial, a PARTNER ACCOUNT MANAGER role has to be created to manage this process.
Because referrals undermine the channel of SOLUTION PARTNERS, SaaS companies have had to build up the internal equivalent of CUSTOMER SUCCESS agents to double up the labour to the end customer.
Because CUSTOMER SUCCESS is expensive, SaaS companies are forced up market to enterprise SaaS to cover gross margins. Enterprise sales strategy “makes up the pricing” for each customer, and thus requires a SALES AGENT with hefty commissions to close the sale. SOLUTION PARTNERs can’t quote on their own.
When a partner could just buy the software commercial off the shelf, fewer humans are required, with fewer conflicts, and the simpler the partner program can be.
Otherwise, it always helps to focus everyone on the customer and their needs, and then work through how to simplify and speed the process from the customer’s POV.
Cross posted to LinkedIn as well.
https://www.linkedin.com/feed/update/urn
activity:7086750827058532353/