Picture the scenario of a chance meeting with a decision-maker within a potential reseller for your software solution, building a fast relationship, and both of you realize the potential of working together.
I recently heard that the events offer the highest source of business opportunities, but the lowest pipeline progression rates. People are very open to talking at events and provide an excellent opportunity to initiate relationships. I can imagine that when people go back to the office that workload and priorities take over, and many best intentions are pushed down the list and not progressed.
When you are seeking potential partners, I would recommend you detail out your target partner profile, qualification questions, and partner fit evaluation questions. Partner qualification criteria will keep your discussions focused when you meet at events.
Where do you fall in the following Typically do/Should do points?
1) Software Vendors / ISVs do the sales pitch to the partner, rather than discuss the joint opportunity
Typically do: When the potential partner expresses interest in the product, the tone changes and the vendor kicks into sales and product detail. The Vendors talk about how great their product is and how great they are.
Should do: Don’t sell to the partner. Provide the necessary facts to enable the joint business opportunity discussion to start.
You learn by questioning. You demonstrate your knowledge by the questions you ask. You control the discussion by questioning. As with many software product vendor companies, many software resellers don’t know how to select their partners either. The more you demonstrate that you are questioning for mutual partner fit, then the more the partner will trust your intentions.
2) Stay too friendly and hesitate to ask the direct questions
Typically do: Vendors often rest their questioning on the outline business opportunity, without properly qualifying the potential partnership with clear next steps. They subsequently focus too much on building a personal relationship. People often cling to any interest, as they haven’t assessed what they really want.
Should do: Vendors should be clear on their target partner company type, and how to quickly question how the potential partner fit. It is not enough if a senior executive from Accenture or IBM is interested unless they can demonstrate how they fit with what you want.
If you haven’t clarified what you want from a partner and accept any partner, then you probably better off buying lottery tickets.
3) Unrealistic expectations on helping reseller get into a new market
Typically do: An interested partner is a find. An interested partner with relevant customers is a much greater find. Resellers can validly sign a solution partner to start pushing into a new market, and this is an opportunity for the solution partner. Do note that the reseller likely has to start at zero and build up a relevant contact base and credibility to win new business and this can take time. Take care on expectations and accordingly, on the level of resources you assign to this plan. Enter such a relationship with your eyes open and be patient.
Should do: The ideal reseller partner is one with a large existing relevant customer base and with relationships the relevant target decision-makers. If you have limited resources, then this is where you should be focused. You want partners who have a focus on your type of customer and can be proactive in selling your solution.
Ask questions to understand the partner’s current business according to what is needed for them to be successful in selling and delivering your solution.
4) Use the relationship to prolong a weak partner fit discussion
Typically do: Relationships are important. Naturally, the focus is on wanting to be right when a vendor finds a potential partner and starts building a good relationship. Too often, the interest in building on the relationship avoids the hard questions being asked, and thus ignoring the challenges.
Should do: Resellers appreciate a structured partner selection and evaluation process. If a partner fit evaluation discussion highlights the challenges in a potential partnership, then an appropriate plan can be put in place. With partner fit evaluation, you can minimize risk according to the pace of the joint opportunity before investing heavily.
When you operate to a structured partner evaluation process, you are optimizing people’s time, allowing you to be more productive with partners.
5) Let me get back to you
Typically do: Many vendors provide too much product information to a potential partner, then hear “let me review with my team and get back to you”. It’s a rookie sales mistake to lose control of your sales process. As highlighted above, events have the worst opportunity progression rates. How do you keep the partner opportunity progressing and maintain control of the process?
Should do: Explain your mutual partner fit evaluation process to the partner, and the steps of the process. As most companies don’t have a solution partner selection process, they can use your process to assess the opportunity. Get the commitment when you have them and put a follow-up date in the diary for after the event. Provide just enough information, and not too much. Providing too much information will make the prospect partner think they have everything they need and will review and get back to you.
Partner Fit Evaluation is the exercise of understanding the partner’s business and then determining how well your proposition fits into their business. Partner Fit is a mutual evaluation exercise that highlights the positives and challenges in working together while also understanding the potential pace of the business together.