Want to know what gets a certain SaaS CEO excited these days (other than MRR, of course)? Let’s start with the growing number of great thought leadership articles touting the mounting importance of reseller channels and partner programs WITHIN SaaS – by some well known venture capitalists, nonetheless! Case in point – According to Tomasz Tunguz, one of my favorite SaaS bloggers and a VC at Redpoint Ventures, implementing channel sales across recurring revenue models should be just as compelling as it is at traditional software and hardware companies. Tunguz makes three critical points to supplement this argument: Channels generate new business and increase revenue without the need to hire more salespeople – aka, partners lower customer acquisition costs (CAC) By supporting the product while reducing the cost of goods, channel partners can actually help increase a SaaS company’s gross margin. Indirect sales and marketing channels diversify a company’s customer acquisition and enable it to serve new geographies without having to establish a physical presence. I couldn’t agree more. In fact, we here at Allbound think that reseller channels in SaaS are integral—even critical—to your organization’s ability to hit many of your key KPIs. Sure, the emergence of the Cloud and SaaS and their subscription-based pricing models have presented some major new challenges. But they’ve also brought with them a wealth of opportunity if approached with the right strategies and tactics. The BIG Three – MRR, LTV and CAC To start, let’s quickly illustrate the importance of recurring revenue – annual…
Read More: Reseller Channels in SaaS: Why They May Be Critical To Your Success
