Having Success with Channel Partners

A Practical Guide for B2B Companies

Remember when you first launched your SaaS product? Every customer win was hard-earned, each sale a direct result of your team's blood, sweat, and endless demos. But now you're staring at ambitious growth targets and realizing that the same approach that got you to $1M won't get you to $10M. New markets beckon, competitors are expanding their reach, and your ideal customers are spread across territories your sales team can barely cover.

Enter channel partnerships - the strategy that helped companies like Microsoft, Salesforce, and HubSpot build global empires. Yet for every success story, there are dozens of companies whose channel programs never gained traction. The difference lies not in the decision to build a partner program, but in how you approach it.

Why Channel Partnerships Often Fail

Let's start with a familiar scenario: A potential partner reaches out, expressing interest in working together. The conversation goes well, you sign an agreement, but six months later, nothing has happened. Sound familiar? This common pitfall, known as a "paper partnership," happens when companies rush into partnerships without a clear strategy or understanding of mutual value.

Understanding the Partnership Journey

Before diving into strategy, it's crucial to understand that partnerships evolve as your company grows. A strategy that works at $1M ARR won't necessarily serve you well at $10M or $100M. Let's break down what this evolution looks like:

Seed Stage ($0-1M): Building Your Foundation

At this stage, focus on essential partnerships that directly impact your product-market fit. Many founders make the mistake of trying to build too many partnerships too soon. Instead:

• Focus on product partnerships that enhance your core offering
• Build relationships with early adopters through founding member programs
• Keep integration development simple and customer-driven

Startup Stage ($1M-10M): First Real Partnerships

This is where channel partnerships start making sense, but quality trumps quantity. While competitors might showcase hundreds of partners, success often comes from having just a few deeply engaged partners. Focus on:

• Starting with 2-3 partners who already sell to your target market
• Creating a simple partner program you can actually support
• Ensuring you can help partners succeed before adding more

ScaleUp Stage ($10M-100M): Building Real Programs

Now partnerships get serious. You need real resources and systems:

• Proper partner operations with clear metrics
• Structured enablement programs
• Deal registration systems
• Clear territory and account mapping

Creating Your Channel Partner Strategy

Rather than jumping straight into partner recruitment, start with these fundamental questions:

1. What's Your Partner Value Proposition?

Here's a crucial insight many miss: your product isn't the star of the show. What truly captures a partner's attention is understanding how collaborating with you will elevate their own business success. Your Partner Value Proposition (PVP) should address:

• Revenue potential through various streams (commissions, services, increased sales)
• Portfolio enhancement opportunities
• Access to innovative technology
• Speed to market advantages

🔗 Learn how to build a Partner Value Proposition that resonates with your partners.

Partner Value Proposition

When it comes to winning over potential partners, showing them a sleek demo or a list of product features might seem like the obvious route. But here's the surprising truth: your product isn't the star of the show. What truly captures a partner's attention is understanding how collaborating with you will elevate their own business success.

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2. Who Are Your Successful Partners?

Use the 4C method to evaluate potential partners:

• Customers: Do they have access to your target market?
• Credibility: Can they credibly represent your solution?
• Capability: Do they have the skills to succeed?
• Commitment: Are they willing to invest in the partnership?

🔗 Understand how you can qualify your potential partners.

Qualifying Channel Partners with the 4C Method

Customers

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3. What Type of Partnership Makes Sense?

Based on your business model and growth stage, consider which partner types align best:

• Referral Partners: For simple products with straightforward sales cycles
• Resellers: When you need local market presence and full sales capability
• Distributors: For reaching numerous smaller resellers efficiently
• White Label/OEM: When partners need to own the complete customer relationship

🔗 This guide will help you to understand which type of Channel Partner works for you.

Channel Partner Types (SaaS) and their roles in the customer journey

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🔗 Not sure if you should work with a reseller or distributor? Read more here:

Deciding when to work with Distributors

The distributor is a Channel Partner that can sell to clients and other resellers. You could also say a “reseller-reseller”. Distributors can play an important role when expanding a company's reach and covering a specific region or industry. “Pre-Cloud” distributors were critical for software vendors because they also covered the logistics of the physical data storage (disks and CDs) on which the software was distributed to the resellers and clients.

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Building for Success

Once you've laid this foundation, focus on creating the operational elements that will support your strategy:

Partner Lifecycle Management

Create clear processes for each stage:

1. Recruitment: Focus on quality over quantity
2. Onboarding: 60-90 day structured process
3. Growth: Regular business reviews and enablement
4. Evaluation: Clear metrics and feedback loops
5. Expansion: Opportunities for deeper collaboration
6. Exit: Clean processes when partnerships end

🔗 Yep, there is also a guide for Partner LifeCylce Management in the Knowledge Hub.

Partner LifeCycle Management

Signing a partnership agreement is just the beginning of a long journey. Creating profitable and long-lasting relationships requires a deep understanding of the various stages of the Partner Lifecycle. This guide will walk you through the six Partner LifeCycle stages—Recruiting, Onboarding, Growth, Evaluation, Expansion, and Exit—providing insights and best practices for building and maintaining fruitful partnerships while delivering a great partner experience.

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Collaborative Behaviors

Success comes from moving beyond transactional relationships. Foster these key collaborative behaviors:

• Open information sharing and honest feedback
• Joint goal setting and planning
• Balancing short-term needs with long-term objectives
• Supporting partners in achieving their goals
• Regular communication and mutual commitment

💡 It seems to be obvious that you should apply collaborative behaviors for collaborative relationships. However I see those often more ignored than applied. I believe that this comes from a widespread misunderstanding that you can treat partnerships like transaction relationships.

Bernhard Friedrichs on LinkedIn: Collaborative vs. Transactional Relationships

𝗧𝗵𝗲 𝘀𝗵𝗶𝗳𝘁 𝗳𝗿𝗼𝗺 𝗚𝗿𝗼𝘄𝘁𝗵 𝗔𝘁 𝗔𝗹𝗹 𝗖𝗼𝘀𝘁 𝘁𝗼 𝗘𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝘁 𝗚𝗿𝗼𝘄𝘁𝗵 𝗶𝘀 𝗵𝗮𝗿𝗱. Your biggest roadblock for 2025? Getting…

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Common Pitfalls to Avoid

1. Rushing Partner Recruitment Instead of signing everyone who's interested, take time to qualify partners properly. Remember: "Qualifying the right partner is an upfront investment; dealing with the wrong one is an ongoing expense."
2. Weak Partner Programs Don't copy enterprise-level partner programs if you can't deliver on them. Start with simple programs you can actually run and measure.
3. Misaligned Incentives Ensure your partnership team is measured on partnership KPIs, not just sales metrics. Partner success requires a longer-term view.

Moving Forward

Building a successful channel partner strategy isn't about having the most partners or the fanciest program features. It's about creating genuine value through well-chosen, well-supported partnerships that align with your company's growth stage and capabilities.

Start small, focus on quality, and build programs you can actually deliver on. Remember that partnerships are relationships, not transactions. With careful planning and consistent execution, your channel partner strategy can become a powerful engine for sustainable growth.

Would you like to learn more about specific aspects of channel partner strategy? Check out our related guides on partner lifecycle management, partner value propositions, and scaling your partnership organization in the Knowledge Hub. Partnership Guides Partnership Guides

Do you need help in developing and implementing a successful Partnership Strategy? I am here to help:

PartnerStandard™ - Services

You don’t need a Chief Partnerships Officer yet; You only need access to one. Try our services and knowledge base to succeed with partnerships.

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