If you haven’t thought about, how, when, or why you should build a partner channel, you’re missing a trick. It’s an effective way for startups to grow sales efficiently. Let me take you through what you need to do to get started.
Why Partner Channels Matter
Let’s cut to the chase: partner channels are a big deal because they allow you to take a one-to-many approach in creating opportunities. Think about it – instead of relying solely on your in-house sales team, you’re essentially deploying an army of mini-salespeople who are already operating in your ecosystem. And the best part? You’re not directly paying for them.
But it’s not just about sales. A well-executed partner strategy helps you create brand awareness and build trust in the marketplace. You’re aligning yourself with companies that complement your offering, which can lead to some powerful synergies.
For early-stage founders, this is particularly crucial. You can de-risk your growth by spreading your wings wider than you normally could.
Types of Partnerships
Let me break down the different types of partnerships I see used (and work) most often:
- Referral Partners: Companies who can directly exchange leads with you. Sometimes they’ll look for a commission, but the real gems are those who are happy to make introductions without expecting anything in return. And you might be expected to do likewise of course.
- Technology Partners: These partners integrate your product with their own services. Imagine a law firm implementing your legal tech platform – suddenly, they’re not just offering traditional legal services, but they’re bundling in a SaaS offering too.
- Service Partners: These are often related services that complement your product. They might provide an onboarding service that goes perfectly with your software for example.
The common thread here? You’re all selling to the same Ideal Customer Profile (ICP). There needs to be a complementary element, whether it’s a direct introduction or because you’re reselling or bolting onto an existing product.
Identifying the Right Partners
So, how do you find these elusive perfect partners? Start by mapping out your ecosystem. Once you know your ICP, think about who else might be selling to that same customer. If you’re in legal tech, maybe it’s solicitors or accountancy firms.
The key is to identify where there’s the most crossover. Who’s selling to exactly the same persona as you? Where would there be a complementary offering that makes both services sticky?
The real sweet spot is when your product helps their product from a retention perspective. These partners are more likely to champion your cause because it’s naturally helping them too.
Making Partnerships Work
This is where I see a lot of founders stumble. They treat partner relationships as a one-and-done deal. But let me tell you, that initial conversation is just the starting point. The real work begins after that call.
To make a partner channel effective, you need:
- A solid onboarding process for the partner
- Training for their team on how to sell your product
- Joint marketing efforts – it could be create co-branded collateral, planned lead generation activities etc.
- Regular check-ins – maybe even monthly visits to their office
The goal is to get their team excited about talking about your product. It won’t happen with just one conversation. You’ve got to hustle that relationship and make it work.
Remember, this is a relationship-led approach. Spend time getting to know your partner really well and establish a good cadence for working together. Set yourself up for ongoing success, not just a one-off win.
Measuring Success
How do you know if your partner channel is actually working? There are two key metrics I look at:
- Opportunities created: How many new leads are coming through this channel?
- Partner-enabled pipeline: How are these opportunities influencing your pipeline velocity?
Partner-enabled opportunities should move through your pipeline quicker because you’re coming in with a warm introduction. The partner, with their pre-existing relationship, can help you get the deal over the line faster.
The Big Picture Impact
When you get it right, partner channels can seriously accelerate your business growth. You’ve got people selling your product who aren’t on your payroll. Your customer acquisition cost becomes much more attractive because one good partnership can springboard you into dozens of new customers.
Think about it – you’re building brand awareness, creating great case studies (which feed back into your marketing and sales efforts), and expanding your reach exponentially. All of this with a lean team.
In essence, your partner channel sits at the heart of your go-to-market motion. It’s a powerful way to springboard your growth while keeping your team small and agile.
My Final Thoughts
Don’t expect your partner channel to be a magic bullet to growth. It isn’t.
It requires effort, strategy, and persistence. But when done right, it can really accelerate your pipeline, revenue, and growth.
Remember, the goal of partnerships should always be creating opportunities. Not just any opportunities, but long-term, stable ones. It’s not a transactional relationship – it’s about building something that benefits both parties for the long haul.
Get out there, map your ecosystem, identify those potential partners, and start building those relationships.
Author: Matthew Codd
I’m Matthew, I have 15 years of commercial leadership experience, helping VC-backed B2B technology companies scale revenue and transition from founder-led sales.
I use my experience to help early-stage start-ups with GTM expertise, sales best practice, and hiring insights.
I co-founded Cosmic Partners in 2022. We are SaaS sales recruitment specialists for VC backed B2B tech companies.
