Aim growth through partners 10 nov2010

Growth Through Partners:
Building International Partner Channels

Presenters:
Len Rust, Consultant, The Rust Report
Paul Solski, Managing Director, AIM Corp. International
Colin McKenna, Managing Director, AIM Corp. Australia

Our many thanks to:

AIM AEUSA International Marketing Corporation
www.aimcorpinternational.com

Copyright© AIM Corporation

Business Development For ISVs

Sydney Our Services:
Seattle
San Jose • Business Strategy Planning
• International Expansion
London
Munich • Partner Program Development
Singapore
• Partner Channel Building
Hong Kong
Shanghai

Our Experience:

Growth Through Partners:

1. Opportunities & Pitfalls
2. Building a Partner Channel
3. Managing a Partner Channel



Expanding To New Markets

• Grow revenues by addressing more opportunities
• Reduce susceptibility to local economy fluctuations by addressing diverse markets
• Capitalize on lower competition in underserved markets
• Increase company market value by gaining national and/or international reach


A World of Opportunities

The Market:
• Over $286B spent on software
• Over 1.2B Businesses
• Over 60 countries
• Over 60 verticals

The Partners:
• Over 600,000 resellers & SI
• Over 70,000 ISVs

Is your market reach adequate?


Market Opportunity Assessment

Before You Begin, Consider…

• The cultural expectations
• Country demographics
• IT spending and growth by:
- Application types
- Verticals
• Focus Spending Priorities
• Number of competitors in vertical
• Ideal target segments
• SWOT
• Investments needed
• Financial Business Case


Welcome to the USA
The GDP of individual US states can be compared to many whole countries.

WA

ME
ARGENTINA MT ND
OR MN VT
NH AUSTRALIA
ID WI NY MA
EGYPT SD
WY MI CT
RI
PA POLAND
IA NJ
NEW NV NE NORWAY
IN OH MD DE
ZEALAND UT IL
CO WV
CA KS MO VA IRELAND
KY
NC
RUSSIA TN
AZ OK
NM AR SC
GA
MS AL
LA
TX
THE NETHERLANDS
FL

CANADA
SINGAPORE
CHINA = CA+TX+NY+WA

Source: IMF, 2008


Direct Vs Channels

DIRECT: CHANNELS:

For: For:
• Committed and focused resources. • More opportunities addressed.
• Quality sales and support. • No/Low infrastructure costs.
• High margins. • Low sales, marketing, support costs.
• Better leverage of local relationships.

Against: Against:
• High infrastructure costs. • Challenge to maintain focus.
• High sales, marketing support costs. • Lower margins.
• Fewer opportunities addressed. • Higher training requirements.


Partners Need Differentiation

• A down economy
• More online purchasing
• Highly educated clients
• Declining product margins
• Increased competition
• Need to add more value differentiate
• Addressing business Vs technology issues
• Change from transaction based to strategic projects
• Become a trusted advisor


Opportunities

Increased Market Reach

More Sales and Implementation Capacity

Lower Costs

Larger Pipeline


Pitfalls

Very Competitive

Wrong Partners

Lack of Mindshare

Not Self Sufficient


Partner Channel Health Check

Does your channel follow
the 90-10 rule?

• How many are doing the expected # of sales per year?
• How many are generating their own leads?
• How many can win sales self-sufficiently?
• How many have committed sales resources to your product?
• How many have a business plan with revenue goals?


Partner Program

Describes Company’s Partner:
SAMPLE SOFTWARE

• Strategies SAMPLE SOFTWARE

• Objectives SAMPLE SOFTWARE

• Processes
SAMPLE SOFTWARE

Defines Framework for:
• Internal roadmap for establishing and growing a partner channel.
• Policies, benefits and resources for partners to grow a profitable business with you.
• Roles and responsibilities of the partner and your company in this partnership.
• Business terms and requirements under which partners will operate.


Partner Engagement Lifecycle

PROSPECT RECRUIT ACTIVATE GROW

Review

OBJECTIVE: OBJECTIVE: OBJECTIVE: OBJECTIVE:
Identify potential Secure commitments Accelerate VARs time Execute on plans to
VARs that fit the from highly motivated to becoming self secure new customers
“ideal” partner profile VARs that have been sufficient in generating and incremental sales.
in target markets and thoroughly qualified. incremental sales.
countries.


Finding The Right Partners PROSPECT

THE IDEAL PARTNER PROFILE:

• Proven industry expertise
• Substantial number of industry references
• Significant portion of company business derived from industry
• Committed to marketing
• Certified on the solution’s software platform
• Currently offering complementary products or solutions
• Willing to allocate sales and consulting resources


Exercise: Your Ideal Partner Profile

MARKET REACH:
1. ______________________________________________
2. ______________________________________________
3. ______________________________________________
4. ______________________________________________
5. ______________________________________________

ABILITY TO EXECUTE:
1. ______________________________________________
2. ______________________________________________
3. ______________________________________________
4. ______________________________________________
5. ______________________________________________

COMMITMENT:
1. ______________________________________________
2. ______________________________________________


Is It A Good Fit? RECRUIT

STRATEGIC IMPORTANCE:

• Does your solution allow the partner to address new/more customers?
• Does your solution position the partner more strategically with clients?
• Does your solution provide the partner with a competitive advantage?


Industry Solution Selling
PARTNER
ACTIVATION

1. Understanding your clients’ industry.

2. Understanding your clients’ business.

3. Recognizing your clients’ business pain points.

4. Defining your clients’ needs.

5. Tailoring your solution to your clients’ needs.

6. Defining your competitive differentiation.

7. Applying the solution sales process.

8. Building clients’ loyalty and repeat business.


Identifying Opportunities for Partners

• Define the market opportunity
• Define the ideal customer profiles
• Define specific customer scenarios
• Identify customer business and technology pain points
• Identify potential new customers through research
• Establish the business case for partners


Exercise: Your Partner Value Proposition

Your Partner Value proposition
1. WHAT IS THE SIZE OF THE MARKET OPPORTUNITY?

2. HOW DOES YOUR SOLUTION ENABLE PARTNERS TO ADDRESS NEW OPPORTUNITIES?

3. HOW IS YOUR SOLUTION DIFFERENTIATED?

4. HOW WILL YOU HELP THEM TO MAKE MORE SALES?

5. HOW WILL YOUR SOLUTION PULL THROUGH MORE PRODUCT & SERVICES SALES?

6. HOW WILL YOUR SOLUTION ENHANCE PARTNER’S STANDING WITH CLIENTS?

7. HOW DIFFICULT IS YOUR SOLUTION TO SELL? (sales cycle, learning, implementation)

8. WHAT IS THE PARTNER’S INVESTMENT AND RETURN ON INVESTMENT?


Maintaining Focus

Business Terms:
• Tiered discount structure.

Business Plan:
• Maintains both strategic and tactical focus.
• Contains joint containing commitments.
• Goals for Sales, Marketing and Competency

Fast Start Campaign:
• Create demand to pick the low hanging fruit.


International Channel Expansion

PREPARE PLAN PARTNER MARKET LEVERAGE

• First, succeed • Understand the • Recruit partners • Target New • Expand
at home competition Customers partnerships:
• Transfer sales
• Define Your Value & tech. skills • Create demand
• Microsoft
• Assist to win • Build a brand • SI
• Target a market
partners’ IB • OEM
• Define the • Secure
business model • Create demand
references
• Define roles & • Build a brand
responsibilities
• Plan pre & post
sales support
• Create the ideal
partner profile

Your Partner Program

The Steps To Channel Effectiveness

1. Assess The Market Opportunity

2. Develop A Partner Program

3. Search For & Qualify Partners

4. Recruit The Right Partners

5. Manage Partners To Agreed Plans


Our Clients & Partners

• Our Clients:


OFFER

A no-obligation
one hour review
of your channel readiness
self-assessment

colinmckenna@aimcorpinternational.com

Tel. 61.2.9980.6961


THANK YOU!

Paul Solski

Aim growth through partners 10 nov2010

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