Optimizing B2B Partner Programs in Software Sales

Exploring the world of B2B partner programs in software sales reveals various strategies and specific details. In a recent conversation among industry experts discussing how companies resell software and establish discounts, they exchanged valuable insights that can significantly enhance partnership effectiveness. 

Exploring the world of B2B partner programs in software sales reveals various strategies and specific details. In a recent conversation among industry experts discussing how companies resell software and establish discounts, they exchanged valuable insights that can significantly enhance partnership effectiveness. 

Let’s look at the perspectives shared by Deven Ravel, Head of Channel Partnerships at HighTouch, Bryan Nugent, Alliances Manager at EPAM, Aaron Howerton, Sr. Program Manager – Partner Ops & Experience at Samsara, Chris Murray, VP Partner Ecosystem at Lead Forensics, Josh Greene, Senior Manager AWS Marketplace Development at AWS, Rick Flores, Global Channel Development, Sr. Advisor at Zebra Technologies and Chris Gordon Business Development Advisor at Vin du Tap.

The Role of Feedback

Deven started by discussing the importance of feedback for venture capitalists dealing with reselling software. 

He mentioned a basic 20% discount on list prices for different kinds of customers but was looking for more clever ways to do it.

With a focus on optimizing B2B partner programs in software sales, the community offered advice into how to improve a B2B partner program:

  • Integrated Customer Feedback: Emphasizing customer feedback integration for refined B2B programs, optimizing offerings aligned with client needs.
  • Innovative Pricing Strategies: Aiming for inventive discounts beyond the standard 20% list price, attracting varied customer segments effectively.
  • Tailored Pricing Models: Customized pricing structures for diverse customer categories, catering to specific expectations and budgets.
  • Enhanced Partner Collaboration: Fostering closer vendor-VC collaboration to innovate unique pricing models, strengthening B2B partnerships.

Partner-Based Discounts

Bryan talked about how the discounts can change. “My old company treated renewals like new deals and gave a discount of up to 50%, depending on how good the partner was,” he explained, showing how discounts could change based on the partner.

From optimizing B2B partner programs in software sales, Bryan’s insights shed light on the dynamic nature of discounts in partnerships such as:

  • Customizable Discount Structures: A Tailored discount based on partner performance will incentivize growth and foster stronger alliances.
  • Partner-Centric Discounting: Implementing partner-specific discount models to encourage engagement and reward valuable partnerships.

On the other hand, Aaron talked about the actual costs involved in selling software. He said, “Cloud programs cost less because they have fewer bills to pay.” This affects how much partners get paid.

Nonetheless, Chris talked about how partners get paid more when they bring in more customers. “We gave partners around 40% more when they brought in more clients,” he explained.

All of this emphasizes the significant impact of customer acquisition on partner earnings within B2B partner programs, demonstrated by the examples of the following:

  • Improved Partner Incentives: Reward partners with higher incentives based on the volume of customers they attract, motivating them to bring in more clients.
  • Enhanced Partner Engagement: Encouraging active participation and increased efforts from partners in attracting new clientele, fostering more robust engagement and collaboration.
  • Greater Revenue Generation: Boosting overall revenue by leveraging partner networks to attract a larger customer base, resulting in increased profits.

Understanding Traditional Sales

Josh mentioned that people starting new companies in the digital world might need help understanding how traditional sales work. He suggested a need for a different approach to modern partnerships.

The evolution of sales strategies in the digital landscape demands an adapted approach within B2B partner programs, which are integral to fostering robust collaborations and sustainable growth in today’s dynamic market.

It gives:

  • Customized Solutions: Tailored offerings that meet specific client needs, enhancing customer satisfaction and loyalty.
  • Enhanced Data Analytics: Utilizing advanced analytics to understand market trends, enabling data-driven decision-making.
  • Agile Collaboration Models: Implementing flexible collaboration structures to adapt to market changes and client demands swiftly.”

Rick also said that discounts could change depending on the type of customer. “Sometimes smaller customers pay more, so the partner doesn’t need to give as much discount,” he noted.

This insight holds several advantages for B2B partner programs, including:

  • Competitive Positioning: Customizing discounts based on customer size allows partners to competitively position themselves in the market by offering more flexible and appealing pricing structures.
  • Profitability Optimization: Tailoring discounts to different customer types aids in optimizing profitability by ensuring that discounts align with the value derived from each customer segment.

Regardless, Chris mentioned how prices can change in different parts of the world. “In some places, if you give partners too much commission, the customers end up paying more because of bidding wars,” he said, highlighting how location affects pricing.

Conclusion

These are crucial in shaping the future landscape of B2B partnerships, ensuring adaptability to market changes and client demands. Emphasizing customer feedback integration, innovative pricing strategies, and enhanced partner collaboration are critical drivers for optimizing B2B programs. 

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