A frequent question❔ how to create a business case for #partnerships that will get both sides excited and bought-in. I chatted with a friendly AI and here is a slightly edited 📑 How-To guide.
But before we jump in, a fellow partnership manager helpfully pointed out that it’s a good idea not only to build a compelling case ✔️ FOR partnerships, but you need to sprinkle it with FOMO too.
If your competition is getting active in the space, your CXOs will react (much) faster to a business case that highlights it.
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💼 Business case
"I'm a partnership manager in a SaaS company (think Dropbox for example), preparing an internal business case for working with a Value-Add Reseller.
Outline for an internal case may include:
I. Executive summary
Brief overview of the purpose of the case and the objective of working with a value-add reseller
II. Background
Overview of the current market and competitive landscape
Explanation of what a value-add reseller is and how they differ from traditional resellers
III. Benefits of Working with a Value-Add Reseller
Increased reach and market penetration
Improved customer satisfaction and loyalty
Enhanced product positioning and differentiation
IV. Selection Criteria
Criteria used to evaluate and select the right value-add reseller
Factors such as their existing customer base, technical expertise, and market knowledge
V. Implementation Plan
Outline of the steps to be taken to successfully implement the partnership with the selected value-add reseller
Considerations such as joint marketing initiatives, technical support and training, and sales enablement
VI. Conclusion
Key benefits and rationale for working with this value-add reseller
Reiteration of the importance of choosing the right partner to ensure success.
The case should be clear, concise, and persuasive, and should be reviewed by relevant stakeholders before being presented.
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We know firsthand how challenging launching and scaling partnerships 🚀could be.
That's why we build a modern light PRM that can help you to do it at 3X speed, while delighting your partners at the same time.
Partner Insight PRM helps partnership teams to onboard and train partners in minutes with automated workflows, as well as sync and exchange data between teams in 2-sided partnerships hubs.
⚡️Try it for free with 3 partners now
or schedule a 15 min demo here
What Implementation plan should include?
Joint Marketing Initiatives
Plan for joint marketing campaigns that will help increase awareness of your product and drive sales through the value-add reseller channel. This may include co-branded marketing materials, joint webinars, and other initiatives that will help build the brand and reach new customers.
Technical Support and Training
Ensure that the value-add reseller has the necessary technical expertise and support to effectively sell and support your product. This may include providing training sessions, product demonstrations, and ongoing technical support.
Sales Enablement
Provide the value-add reseller with the necessary tools and resources to effectively sell your product. This may include product pricing and packaging information, lead generation and management tools, and sales support materials.
Channel Management
Define a clear process for managing the relationship with the value-add reseller, including communication protocols, sales reporting and performance metrics, and a plan for ongoing collaboration and improvement.
Revenue Tracking and Reporting
Establish a process for tracking and reporting revenue generated through the value-add reseller channel. This information will be used to evaluate the success of the partnership and make any necessary adjustments to the program.
Ongoing Evaluation
Continuously evaluate the partnership with the value-add reseller to ensure it is meeting your goals and objectives. This may include regular performance reviews, customer satisfaction surveys, and program modifications as needed.
This list is not exhaustive and the specific elements included in the implementation plan may vary based on your company's specific needs and requirements. The goal of the plan should be to ensure that the partnership with the value-add reseller is successful, profitable, and sustainable.
How to ensure internal buy in?
Align with company goals: Ensure that the proposal aligns with the company's overall strategy and goals. Highlight how working with a value-add reseller will help the company achieve its objectives.
Involve stakeholders early: Involve relevant stakeholders, such as sales, marketing, and product teams, in the proposal process from the beginning. This will help ensure that everyone is on the same page and that the proposal takes into account the perspectives of all relevant departments.
Communicate the benefits: Clearly communicate the benefits of working with a value-add reseller, such as increased reach, improved customer satisfaction, and enhanced product differentiation. Provide data and case studies to support your arguments.
Address concerns: Address any potential concerns or objections from stakeholders, such as concerns about channel conflict or the cost of implementing the program. Be prepared to provide solutions to these concerns.
Build a strong case: Put together a strong and well-researched case that includes a clear implementation plan, measurable goals, and a clear timeline for achieving results.
Present the case: Present the case in a clear and persuasive manner, highlighting the key benefits and addressing any potential objections. Encourage open discussion and feedback to address any concerns.
Follow up: Follow up after the presentation to ensure that everyone is on board and that the necessary next steps are being taken to move forward with the proposal.
What if my competitors are getting active on this market, how can I use it to make the internal case stronger?
Emphasize Competitive Advantage: Highlight how working with a value-add reseller can give you a competitive advantage over your competitors. This may include increased reach, improved customer satisfaction, and enhanced product differentiation.
Market Intelligence: Use competitor activity to gather market intelligence and make informed decisions about your own strategy. This may include analyzing their marketing and sales strategies, as well as their strengths and weaknesses.
Differentiation: Use the information you gather to differentiate your product and solution from your competitors. This may include emphasizing unique features, advantages, and value propositions that set you apart.
Time-to-Market: Emphasize the importance of getting to market quickly and effectively, especially if your competitors are already active in the market. Highlight how working with a value-add reseller can help you get to market faster and more efficiently.
Market Opportunity: Highlight the size and growth potential of the market and the opportunity for your company to capture a significant share of the market by working with a value-add reseller.
By using competitor activity to your advantage, you can make a stronger case for working with a value-add reseller and demonstrate the urgency and importance of taking action to remain competitive in the market.
What are the typical mistakes that partnership managers make when building their business case and how to avoid them?
Underestimating resources needed: Underestimating the resources needed to implement the program and manage the partnership can lead to underfunding and resource constraints that negatively impact the program's success. To avoid this, it is important to accurately assess the resources needed, including staffing, marketing, and technical support.
Lack of alignment with company strategy: If the partnership does not align with the company's overall strategy and goals, it may not receive the necessary support from other departments or stakeholders. To avoid this, it is important to ensure that the proposal aligns with the company's overall strategy and goals.
Neglecting partner selection process: Neglecting the selection process for the value-add reseller can result in a poor match between the company and the reseller, leading to poor performance and reduced results. To avoid this, it is important to conduct a thorough selection process, including evaluating the reseller's technical expertise, customer base, and sales process.
Inadequate contract negotiation: Inadequate contract negotiation can lead to misunderstandings and disagreements that negatively impact the partnership. To avoid this, it is important to ensure that the contract clearly defines the roles, responsibilities, and expectations of both parties.
Lack of ongoing communication and collaboration: Lack of ongoing communication and collaboration can lead to misunderstandings, misalignment, and reduced results. To avoid this, it is important to establish clear communication protocols, regularly evaluate performance, and make adjustments as needed.
What is the business case that to present to a partner to create excitement and buy-in on their side?
When building a business case for a partnership with a value-add reseller, you will need to present a compelling case to the partner to get them excited and gain their buy-in. Here are some steps you can follow to create a strong business case:
Show the potential for growth: Demonstrate how the partnership will lead to increased revenue and growth for both your company and the reseller. Highlight the market opportunity and the potential for the partnership to capture a significant share of the market.
Highlight the benefits of your product or solution: Emphasize the unique features, advantages, and value propositions of your product or solution. Show how it can benefit the reseller's customers and help them grow their business.
Share your company's experience: Share your company's experience and expertise in the market. Highlight your track record of success and the resources and support you can provide the reseller.
Demonstrate your commitment: Show the reseller that you are committed to the partnership and are prepared to invest the necessary resources to ensure its success.
Foster a collaborative relationship: Foster a collaborative relationship with the reseller by involving them in the planning and decision-making process. Seek their input and work together to develop a mutually beneficial partnership.
Offer incentives: Offer incentives to the reseller to motivate them to invest in the partnership and prioritize your product or solution. This may include sales incentives, marketing support, and technical training.
By demonstrating the potential for growth, highlighting the benefits of your product or solution, and fostering a collaborative relationship, you can create excitement and gain buy-in from the value-add reseller and establish a successful partnership.
What are the non monetary incentives that I can add to the mix to make the case stronger
Exclusive access to new products and solutions: Offer the reseller exclusive access to new products and solutions before they are made available to the general market. This can help the reseller differentiate themselves from their competitors and increase their competitiveness.
Joint marketing opportunities: Offer joint marketing opportunities, such as co-branded events, webinars, and case studies, to increase brand awareness and generate leads.
Technical training and support: Provide technical training and support to help the reseller effectively sell and support your products and solutions. This can include certification programs, online training, and access to technical resources.
Lead sharing and referral programs: Offer lead sharing and referral programs to help the reseller generate new business and increase their revenue.
Collaborative product development: Involve the reseller in the product development process and seek their input and feedback to create products and solutions that meet their specific needs and requirements.
By offering a combination of monetary and non-monetary incentives, you can make your business case stronger and increase the chances of gaining the buy-in and commitment of the value-add reseller.
There are several non-obvious or innovative incentives that you can try to make your business case for a partnership with a value-add reseller even stronger. Here are some examples:
Partnership recognition: Offer recognition and awards to the reseller for their contributions to the partnership. This can include certifications, awards, and special recognition events.
Collaborative research and development: Invest in collaborative research and development initiatives with the reseller to help them develop new products, solutions, and services.
Joint innovation projects: Encourage the reseller to participate in joint innovation projects to drive new ideas and create new opportunities for both companies.
Access to key executives: Provide the reseller with access to key executives and decision-makers within your company to help them build their business and increase their influence.
Joint sales and business development initiatives: Offer joint sales and business development initiatives to help the reseller increase their revenue and grow their business.
We know firsthand how challenging launching and scaling partnerships 🚀could be.
That's why we build a modern light PRM that can help you to do it at 3X speed, while delighting your partners at the same time.
Partner Insight PRM helps partnership teams to onboard and train partners in minutes with automated workflows, as well as sync and exchange data between teams in 2-sided partnerships hubs.
⚡️Try it for free with 3 partners now
or schedule a 15 min demo here