SaaS partnership strategy – Developing a successful SaaS business is not just about creating a “software as a service” that provides a solution to a specific problem. Hyper-competitive business niches like the technology sector, require co marketing efforts for building a strong and effective sales strategy.
There are lots of channels you can use to market your service. It takes sales, marketing, and automation to deliver that to the end user. While you can consider outbound and inbound marketing, paid and unpaid channels, creating a great partnership is a must for any budding SaaS company.
More than any other industry, the type business model depends heavily on partnerships. And while these companies may understand their own business well, when it comes to the right partnerships for their business goals, they need to consider the main types of partners.
Give this article a quick read and find out about SaaS business models, what a partnership program looks like and what are the most common types of partners for SaaS companies.
Here’s a quick summary of what you’ll discover by the end of the article:
- The business model of a SaaS company
- What are SaaS partner programs?
- Types of SaaS partners
The business model of a SaaS company
Software as a Service (SaaS) continues to gain popularity in every corner of the business world, because it shifts from traditional approaches to installing, maintaining, and managing software in favor of delivering cloud applications over the Internet. At the same time, it represents a much more viable alternative compared to the option of developing your own software in-house, which requires more effort and quite a budget.
SaaS offers a B2B service provided through an online platform. In some cases, the software may be offered for free, in which case the company will make profit by charging for support or other services. Or it can be purchased either through a long-term contract or a subscription-based model for access to premium features.
The main difference between SaaS companies and traditional software companies is that SaaS is hosted in the cloud, which means the software user license won’t be needed. Based on their subscription, the user only needs to log into their account to gain full access.
B2B SaaS Partnerships: What is a SaaS partner program?
Building a SaaS partner program involves an equitable agreement between the SaaS company and other businesses or even existing customers to promote or sell the SaaS service to new audiences in exchange for tangible incentives.
SaaS partnerships create co marketing opportunities and leverage both partners in mutually beneficial ways: for lead generation, platform interoperability, system integration, brand awareness, geographical expansion, or even for filling a gap in their value proposition.
Successful partner programs can increase a SaaS company’s income in the long run. Through partnerships, you can build trust around your brand. And while your partners promote your product, you can focus on further developing and improving your own product.
SaaS Partnership Strategy: Types of SaaS partner programs
Building a successful SaaS partner program means that you’ll have to adapt the strategy based on your objectives. Therefore, depending on what you want to achieve and your goals, you can create your own partner program based on three main types:
- advocate partner program
In the partner ecosystem, the advocate partner programs refer to partnerships with the lowest level of interaction. By that, we mean that advocates will make meaningful connections with potential customers and endorsing the product when it’s appropriate.
- referral partner program
Referral programs promote community growth and forms the basis of a trustworthy group of loyal customers willing to recommend your product to other potential customers in exchange for nominal rewards. Every time referral partners bring you a lead or generate a sale of your SaaS product, they receive a commission fee in the form of discounts, credits or a percentage of the sales.
- strategic partner program
A strategic partnership program is aimed at achieving long-term goals for both parties involved by combining efforts in marketing, sales, or through product integrations. This type of partnership can be beneficial for both companies involved as it allows for a sharing of resources and knowledge that can help both companies grow.
In order to be successful, it is important that both companies have a clear understanding of what they hope to achieve through the partnership and that they are committed to working together towards these goals.
Types of SaaS Partners
SaaS partnership programs are more than just a way to make profit. When you have a good relationship with other players in your industry, your opportunities for growth increase. With trusted partners, you can benefit from more credibility in the industry and discover new ways to grow your business.
However, in order to succeed in achieving the previously mentioned goals and getting long-term customers, you need to be careful about what kind of partners you associate with. Here are the most common partner types for SaaS partnerships. Check out the list and decide which one of them can be the best SaaS partner for your business!
Resellers
A reseller partnership may come as an excellent way to increase customer acquisition. Resellers will help you acquire customers quickly by tapping into their large customer base and finding compelling opportunities for you. You will also be able to leverage their coverage and increase sales in areas where you’re not present.
The most important thing for companies to remember when working with resellers is that communication is key. You need to be clear about your expectations and goals from the start, and you need to provide regular updates on your progress. By keeping an open line of communication, you can build a strong relationship with your resellers that will last for years to come.
System integrators
If the SaaS product is complex and needs integration into an existing IT ecosystem, then this type of partner can be really important for the development of your business. Integration partners will support you from pre-sales consulting to installation or product management services, by customizing the solution to fit the unique needs of the end user.
Most of the time, integration partnerships don’t necessarily require direct selling of your product. You would actually find yourself in a co-selling approach which system integrators are used to when working with large accounts on a global scale.
Tech partners
As it becomes increasingly common for companies to establish marketing, referral and reseller partner programs, many SaaS companies have yet to explore the potential of a successful partner program with tech partners to drive growth.
Technology partners are other software companies that your product is built to integrate with, or that themselves build integrations for your product. Teaming up with a non competing software company can help you improve your value proposition.
Advisory teams
Advisory teams are the hardest partners to get on board, mainly because they would rather remain silent. However, if your SaaS product stands out and is relevant to their customers, they will recommend it. These companies usually have direct access to top company executives, so their recommendations are invaluable
Who would you rather seal strategic partnerships with? When choosing successful partners the outcomes can be expansive and deliver full potential that will benefit your brand’s overall image. Find, filter & connect with new partners and start using partnership marketing as a communication strategy by signing up for FREE on our platform!