Partner Hypothesis

Purpose

A Partner Hypothesis helps validate your partner value proposition by clearly defining who your potential partners are, why they would partner with you, and how they align with your partnership strategy. Think of it as your partnership "business case" - it helps you avoid the common pitfall of signing partners just because they're interested, rather than because they truly fit your strategy.

Why Create a Partner Hypothesis?

Consider this common 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 is often the result of not having a clear partner hypothesis that validates the partnership's potential before investing time and resources.

A well-crafted partner hypothesis helps you:

• Avoid "paper partnerships" that look good on paper but generate no value
• Focus resources on partners with the highest potential for success
• Create clear, testable assumptions about partnership value
• Build a targeted partner recruitment strategy

Guide Components

1. Partner Classification

Define the specific type of partner you're targeting. This isn't just about labels - it helps you understand how to engage with and support these partners effectively.

Example

Partner Categories, Partner Types, Partner Business

In business, we hear all these different names for partners—like channel partners, resellers, affiliates, agencies, integration partner and so on. It gets pretty confusing, right?

pro.partnerstandard.com

This classification tells us:

• The partner will help distribute our product (Channel)
• They'll sell directly to end customers (Reseller)
• They have marketing expertise and client relationships (Agency)

2. Value Proposition Alignment

This is crucial - it answers the fundamental question: "Why would these partners want to work with us?" Remember, partners are running their own businesses with their own goals.

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.

pro.partnerstandard.com

Real-World Example For a SaaS company selling marketing automation software:

3. Partner-ICP Intersection

Understanding how partners interact with your Ideal Customer Profile (ICP) is critical. This helps validate if partners can actually influence your target customers.

Example Scenario For a cybersecurity SaaS product:

4. Market Validation

This section moves from theory to reality - identifying actual companies that fit your hypothesis.

Example Table:

5. Success Metrics

Define how you'll measure if the partnership hypothesis is correct.

Example Metrics

6. Testing Plan

Create a structured approach to validate your hypothesis.

Example Plan

Best Practices

1. Be Specific
• Bad Example: "Partners will sell our product"
• Good Example: "Partners will generate $100K ARR in first 6 months through enterprise sales"

2. Focus on Validation
• Bad Example: "Partners seem interested"
• Good Example: "3/5 target partners confirmed our margin structure aligns with their business model"

3. Consider Scale
• Bad Example: "Lots of potential partners"
• Good Example: "50 agencies in our target region meet our partner criteria"

4. Update Regularly Document learnings like:

• "Initial margin assumption of 20% too low for agency partners"
• "Technical certification takes 2x longer than expected"
• "Partners need industry-specific case studies"

Common Pitfalls to Avoid

1. Too Broad Focus Example: Trying to target both MSPs and digital agencies with the same value proposition

2. Insufficient Research Example: Not realizing a potential partner already has an exclusive relationship with a competitor

3. Weak Validation Plan Example: No clear timeline or resources allocated for partner enablement

Using This Template

Think of this template as your partnership business plan. Just as you wouldn't launch a product without market validation, don't launch a partner program without testing your hypothesis.

1. Start with one specific partner type
2. Fill in all sections with detailed information
3. Include specific company examples
4. Define clear validation criteria
5. Create a testing timeline
6. Review and refine regularly

Real-World Testing Example:

Remember: A Partner Hypothesis is a living document that should be updated based on market feedback and actual partner interactions. The goal is to fail fast with incorrect assumptions and double down on what works.

Next Steps

After completing your partner hypothesis:

1. Share with stakeholders for feedback
2. Create a pilot program with 2-3 partners
3. Set clear milestones for the first 90 days
4. Review and adjust based on early results

The most successful partnerships often start with a well-tested hypothesis that evolves based on real-world feedback and results.