Explore the potential of the Microsoft Marketplace for ISVs. Learn how to leverage partner-to-partner opportunities and utilize tools like WeTransact, Reveal/Crossbeam for growth.
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Cloud marketplaces have become a no-brainer for Independent Software Vendors (ISVs) aiming to scale fast. The Microsoft Marketplace, holds a significant opportunity with a large reseller channel, allowing companies to build a robust reseller network and leverage partner-to-partner (P2P) opportunities.
Here’s how you, as an ISV, can use WeTransact, and focus on a Ecosystem-Led Growth (ELG) approach, utilizing tools like Reveal/Crossbeam to move from building to executing your reseller network.
The Microsoft Marketplace is a platform consisting of two storefronts (Appsource and Azure Marketplace) that feature over 90,000 cloud solution providers (CSPs), aka resellers. This channel offers tremendous opportunities for ISVs to forge partnerships and establish a strong indirect sales channel.
There are three ways of selling through this marketplace: through the storefronts, through co-selling with Microsoft, and via the Microsoft reseller channel (P2P). The P2P or partner-to-partner model stands out as a significant competitive advantage over AWS and Google Marketplaces.
The benefits of P2P on the Microsoft Marketplace include access to Microsoft’s large network of resellers, reduced customer acquisition costs, and connectivity with all market segments. Leveraging the existing trust that customers have in their technology providers resellers, while reducing risks all by operating under Microsoft's umbrella— is incredibly valuable. Plus, Microsoft ensures compliance with local regulations and handles exchange rates, regardless of your reseller locations or currencies.
Collaborating with Cloud Solution Providers (CSPs) gives you a significant advantage. CSPs can resell your product just like Microsoft products, offering an additional sales channel. With the mentioned 90,000 CSPs available, the potential for expanding your outreach is huge. Partnering with these CSPs involves both direct and indirect channels you should know. Direct resellers sell directly to customers, while indirect resellers include distributors.
To work effectively with CSPs, it's crucial to understand who they are and how they generate revenue. Only then will you be able to decide who to pair with. The reseller landscape can be categorized into four types: value-added resellers (VARs), system integrators (SIs), managed service providers (MSPs), and solution aggregators or indirect providers (distributors).
SIs typically work on a project basis, MSPs offer managed services on a subscription basis, and Indirect Providers operate at scale on the distribution channel introducing you to their community of resellers or MSPs.
Establishing a CSP reseller program can be challenging, but the benefits make it worth it. A reseller program provides an indirect sales force, enabling you to tap into a larger network. Resellers have portfolios of customers who already trust them, allowing you to leverage these relationships to reach new clients. This approach, often called an Ecosystem-Led Growth (ELG) , helps gain more velocity when expanding your revenue.
The ELG approach focuses on leveraging the existing relationships and trust that in this case, resellers already have with their customers. By aligning your sales efforts with those of your resellers, you can target potential clients who are already inclined to trust your solution. This method maximizes the impact of your marketing and sales strategies, making the expansion process smoother and more efficient.
Additionally, focusing on a reseller program can help you focus on your core competencies, such as product development and customer support. Resellers often have deep knowledge of their local markets, enabling them to position and sell your products quicker. Partnering with well-known resellers will also reinforce your brand's credibility and visibility in new markets.
The first step to tapping into this big reseller network and getting the most out of it is by understanding who the resellers are and how they make their money. After you know who they are, it's time to find the right reseller to partner with. We know that finding the perfect match can be challenging, so we built the WeTransact Reseller Network, which includes software companies and resellers looking to partner with innovative companies. Our directory and introduction services help facilitate these connections.
Resellers have portfolios of customers who already trust them, allowing you to leverage these relationships to reach new clients.
The marketplace allows you to extend private offers to CSPs. Here are three key components to keep in mind:
The problem is that many P2P initiatives fail due to poor execution. To avoid this, ensure some prerequisites are met:
In summary, two of the most important things to do when building a reseller channel is to build your connections programmatically using ecosystem platforms like Reveal/Crossbeam These platforms can help you leverage your partner ecosystem data to immediately show you the people and companies in your network that will accelerate and close your next deal.
By leveraging the trust your customers already have with your resellers, provide your reseller's sales team with practical learning and enablement to best sell the value of your solution. If you engage in first calls with the reseller's sales team, you can provide even more practical learning and a learning-by-doing approach.
The Microsoft Marketplace is all about partnerships, offering ISVs a powerful way to build and scale their reseller channels. By tapping into a big network of partners, creating compelling offers, and ensuring smooth relationships and collaboration, ISVs can significantly grow their revenue and impact.
Ready? Discover the potential of P2P opportunities on the Microsoft Marketplace with WeTransact. Leverage tools like Reveal and Crossbeam to build strong relationships and growth. Contact us today.
