Share Question — Clarity

the startups.com platform about startups.comCheck out the new Startups.com - A Comprehensive Startup University

Categories

Browse Search

Loading...

How to enable resellers to maximise sales in a "Land and Expand" sales model

Traditionally software sales for resellers are about Software and Services. However new wave SaaS companies now look at typically smaller deals to help grow into larger enterprises. How best could an organisation support resellers to reach their targets (min 250k annually) with such small margins?

Channel Partners

Partnership Development

Brooks Walker answered

It’s all about ensuring the value delivered becomes mission-critical to the end-user team. Once other solutions are replaced or surpassed by the efficacy and ease of use of your platform, there are ripple effects that impact later tech evaluations and even change staffing plans over time. Once you reach that point, it’s very easy to require a higher ongoing price.

Being able to effectively tie the product to revenue is a prerequisite for this strategy. Many organizations choose to set initial step-ups in price tied to either user growth (not recommended) or levered to company growth / output growth over time. Transparency about this likely price increase becomes less important as orgs become larger. Smaller clients will require much more work to increase price and it’s not always going to be worth the step-up due to churn risk and ROI on the upsale efforts.

Hope that helps!