Breaking into GTM

What is a channel partner, and why would a software company hand over 30% of the price?

The short answer

Because the partner is selling you something cash cannot buy: an existing trusted relationship with a customer, in a market or segment where you have no presence. The economics only work when the partner does real work, so the margin should track how much of the sales cycle they carry. A referral partner who makes an introduction earns 5 to 15%, a reseller who owns the cycle, quotes, closes and supports earns 20 to 30%, and a strategic partner committing to multi year business can go higher. If you find yourself paying 30% for a warm introduction, you have priced it wrong rather than partnered badly.

Go deeper, your way

5 hand-picked resources, 2 India-specific, 5 link-checked. Pick how you want to dig in.

The same ground, at another level

How channel, resellers and marketplaces reads from a different seat.

Terms in this answer

People also ask

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Also in D2C

The same ground, over in Scale, fund & exit, our D2C track.

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