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Bessemer Venture Partners (Atlas)

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The clearest single explanation of the five partner types and what each is worth, including real margin bands (20 to 30% for VARs, 5 to 10% for referral) and how to compensate your own AEs on partner deals.

The GTM guide to building SaaS channel partnerships

From Bessemer Venture Partners (Atlas) by MP Eisen 20 min read

VAR margins usually run 20 to 30 percent; pure resellers who only process the transaction get 5 to 10 percent.
Budget 10 to 20 percent of the purchase price for services and implementation on a partner-delivered deal.
Comp neutrality (reps retire quota at full list price) is expensive but stops AEs from fighting partner deals.
An alternative: pay reps on net revenue but require something like 25 percent of quota to be sold with a partner.

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Answers Referral, tech partner, reseller, SI: someone offered us a partnership, which one is it? How do I tell whether a partnership is actually working, and when do I kill it? How do I stop my AEs from treating partner deals as a threat to their number? What is a channel partner, and why would a software company hand over 30% of the price? How do I work with a system integrator without losing the customer relationship? How do I choose between a distributor, a VAR and going direct in a new country? What margin should we give partners, and how do we stop channel conflict?

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