Are you looking for a way to grow your business and reach new clients? Do you already work with Partnerships but would like to create a scalable model?
If so, you might want to consider creating a Partner Program.
The Partner Program is a way to collaborate with other companies or individuals who can support you in marketing and selling your offerings to their clients, creating win-win situations in the industry. By doing so, you can leverage their network, reputation, and expertise to boost your sales and brand awareness.
But how do you create a Partner Program from scratch?
Since I joined isendu, the challenges from top management have been to increase brand awareness and boost sales.
I needed a way to learn and implement this quickly, so I started documenting how to realize this scenario.
At isendu I developed from scratch the partnership channel, to date we have +30 Active Partners divided between Tech, including CMS and other products and services integrated with isendu, Strategic, including Digital agencies, Software integrators and E-commerce manager, and Carrier partners that have key relevance for us and our clients who can get discounted shipping rates.
Here is what I recommend doing during the first year of the project’s life:
1. Start by setting simple short-term goals
Begin by establishing concise short-term objectives. Initially, I prioritized two goals: delving deeply into understanding the company (including its product, market, and competitive landscape) and introducing myself along with my partnership ideas to the different departments.
I only had the support of one partner specialist, therefore I could not count on a dedicated team.
However, this challenge quickly transformed into an opportunity. I recognized the importance of getting buy-in from the other teams when it comes to partnerships.
To facilitate the biggest business impact from partnerships, your entire organization must become Ecosystem-Led.
2. Focus on partnerships as a strategy
The only way to turn partnerships into a business strategy is to include, from the first hour, all departments of your company in the program you are developing.
It has been a month since I began dedicating all my time to conducting discovery calls and meetings. My focus was on reaching out to digital agencies, software integrators, e-commerce managers, merchants, couriers, and logistics companies. My aim was to fully engage in the isendu ecosystem, understanding the product and current collaborations, while also gathering feedback to pinpoint areas for enhancement.
3. Living in the market
Talk to people and establishing meaningful connections within your industry. This involves actively engaging with individuals who operate in your field. Relationships are the foundation of our work.
By immersing myself in the market, I gain valuable insights into prevailing trends, challenges and opportunities. Talking with professionals already embedded in similar industries has provided me with a wealth of experiential knowledge. These interactions not only provide a broader perspective, but also help me understand the nuances of the industry, its dynamics, and the specific needs of potential partners at the product and service level.
4. Create a strong partner value proposition
What benefits do you offer to your partners and clients? How do you stand out from your competitors? How can you help them achieve their goals?
A comprehensive Partner Program include training, collateral materials, co-marketing plan and technical support. Providing incentives and a lucrative commission plan, especially in the early stages, will be key.
5. Focus on your KPIs
For the first year, I wanted to achieve at least 5% of total MRR (Monthly Recurring Revenue) from partner-generated revenue.
And start tracking other key indicators, such as ARPU (Average Revenue per User) and MQL (Marketing Qualified Leads) generated by co-marketing activities with partners.
To spread brand awareness and launch the partner program, I involved all marketing and communications assets.
6. Craft your Ideal Partner Profile and find great partners
Crafting an Ideal Partner Profile (IPP) is crucial for a robust partner acquisition and retention strategy. An IPP based on the needs and characteristics of your company can help you identify the right partners and build valuable relationships with them.
To create an ideal partner profile (IPP), I followed these steps:
- I kept in mind the goals. What are the benefits and challenges of partnering with isendu? What are the key performance indicators (KPIs) and metrics to measure the success of the partnership?
- I identified the traits and characteristics of the best-fit partners for isendu. These included company size, industry, customer base, values, product/service, and geographic location. I used data and research to support my findings, such as analyzing the client base, conducting surveys and interviews, and reviewing market trends and competitors.
- I created a detailed description of the ideal partner profile, highlighting the attributes that make them a perfect match for isendu and its partner program. I also included the value proposition and the benefits of partnering with isendu, such as increased revenue, improved customer satisfaction, and increased brand visibility through planned co-marketing activities.
- I review and update the ideal partner profile regularly, based on the feedback and results from the existing and new partners. I also monitor the performance and satisfaction of the partners, and identify any gaps or opportunities for improvement.
We use several ways to reach partners:
- Cold outreach using LinkedIn Sales Navigator, email or Cold Call
- Customer Referrals, for instance, when a customer expresses interest in the tool during a demo but requests that their agency be involved before finalizing the agreement. This contact is forwarded to my team.
- Partner Referrals, for example a few weeks ago I was dealing with a Software House that Trustpilot introduced to me.
- Online, offline events and all the co-marketing activities. Thanks to the co-marketing activities developed with our partners (including in-house events), we reached more than 1,000 leads.
- Inbound Marketing.
- Leveraging the marketing team’s assistance, we’ve filled our channels – newsletter, community, Meta, LinkedIn, and YouTube – with content tailored to engage our audience. Our partner program page was integrated into the website and features contact information, including personal and company email (partners@…), along with a clear call-to-action inviting visitors to schedule a call.
7. Establish Agreements
Draft clear, legal terms defining responsibilities, incentives and expectations.
We’ve established an agreement offering a 20% commission rate, without imposing any binding obligations on the partner. If the partner successfully introduces a minimum of 5 clients annually, they will receive lifetime commissions for those 5 clients. For fewer than 5, commissions will apply only for the initial year. At the time we launched isendu’s new Partner Program, we applied a higher incentive for early sign-ups. However, I realize that although incentives may attract attention, partner activity is primarily driven by the relationship and value brought by our product and support.
8. Onboard your partners
Implement an easy-to-follow onboarding process that efficiently integrates partners into your ecosystem. You need to provide them with the necessary training, resources, and support to help them succeed with your product or service.
A PRM (Partner Relationship Management) software, for example PartnerStack or Allbound, can help you automate partner onboarding, track partner activities, measure partner performance, and generate reports and insights. You can use a PRM to streamline your workflows, improve your visibility, and increase your efficiency.
There are two fundamental pillars to always keep in mind: ongoing training for your product/service and a co-marketing plan. Training helps make your partners feel comfortable talking about your value proposition. Co-marketing creates an audience pull effect, rather than a channel push-back effect. Combining these two elements is the magic trick.
9. Nurture, nurture, nurture
Establish consistent communication channels (e.g., newsletters, webinars, one-on-one meetings) to keep partners engaged and informed.
The right harmony, common goals, and a signed agreement are not enough, only time will tell which partnerships will be more mutually beneficial.
From my side, I want communicate regularly with partners and actively seek their input and feedback on the program and the product.
10. Track partners’ activities
I Monitor partner activity, such as the number of leads generated, marketing activities, and the frequency of collaboration.
Partner activities must be aligned with your KPIs. KPIs should be set based on your goals.
You need to monitor and analyze how your partners are performing, and what impact they are having on your business. You can use metrics such as partner contribution percentage, ARPU, partner retention, conversion rate, partner referrals, etc. You can also use qualitative data such as partner feedback, testimonials, and reviews.
11. Continuously evaluate metrics
Continuously evaluate the program based on performance metrics and plan for future actions and goals.
Regularly review partner performance against set KPIs to identify strengths, weaknesses, and areas for improvement. You can also use benchmarks and industry standards to compare and improve your performance.
As far as I’m concerned, after I’ve reached the first-year target (which was not very challenging, to be honest), I decided to focus on three challenges:
- Boosting revenue generated from Partner’s clients.
- Making partnerships scalable.
- Optimizing time by focusing on fewer, more profitable partners.
12. Optimize and plan OKRs
After a year of experience, mistakes, successes, relationships built, I suggest stopping for a moment and in a sense starting again.
Having the awareness and insight gained after this period is critical to define OKRs.
OKRs (Objectives and Key Results) guide you towards your desired destination, highlighting long-term priorities and ensure they remain in focus.
Unlike KPIs, which are like a dashboard that indicates whether everything is working well in the medium term.
Successful OKR adoption is about commitment, and it’s an investment in your team, culture, and business. It’s not just about setting objectives but ensuring everyone comprehends and embraces them.
OKRs serve as a system for setting and executing goals, promoting alignment, agility, and impact. They help you distinguish what truly matters and set clear priorities, consisting of Objectives (what to achieve), Key Results (how to measure success), and Projects (focused efforts to achieve Key Results).
OKRs are the north star of your efforts.
Some of the main objectives that can be set in OKRs for partnerships are:
- Drive Growth
- Drive Innovation
- Drive Change
- Enhance Brand Reputation
- Expand Market Reach
Bonus. Seek feedback and continue to iterate
Conduct surveys, interviews, and feedback sessions to understand partners’ experiences, challenges, and suggestions.
You’ll never grow and improve your partner program if you don’t seek continuous feedback.
Keep an open mind. Partnerships are tough but worth it.