The dictionary definition of partner is ‘one associated with another especially in an action’. The key word here is action, because a successful partnership requires both parties to engage in joint activities that lead to meaningful outcomes and measurable results.
Many companies consider a partner strategy to expand their reach, increase revenue and enhance their market positioning. Before committing to a business partnership, it’s important to define what success looks like for both parties. Here are some key factors to evaluate before engaging in a business partnership.
1. Is Your Solution Channel Ready?
· Can your product or service be readily marketed and sold by a third party?
· Does it have compelling features and unique functionality that address marketplace requirements?
· Is there a product roadmap highlighting planned product releases and updates which can be shared with partners and customers?
2. Do You Have Dedicated Partner Support?
· Are there partner sales and marketing materials available?
· Are there pre- and post- sales support tools and resources for customer opportunities?
· How do you handle product demos, RFPs/quotes, and joint customer sales calls and briefings?
3. Is Your Pricing Model Channel Friendly?
· How do partners profit from selling your solution?
· Are your margins competitive with similar solutions in the market?
· Do you provide price protection or notifications of price changes in writing within a specified timeframe?
· Do you have a deal registration program to avoid any conflicts between partners on new opportunities?
4. How Does Your Sales Model Foster Collaboration?
· Is there a direct sales team and how do they interact with partners?
· Does their compensation plan include goals and incentives for partner collaboration on customer deals?
· Have you established account mapping process and defined goals for closing deals with target customers?
· What are your rules of engagement for engaging with partners?
5. Do You Have Executive-Level Sponsorship?
· Is there buy-in and commitment from your executive team to invest in partnerships?
· Will there by ongoing executive briefings and annual partner business reviews?
· Are there plans for partner conferences, advisory councils, executive roundtables, or other annual partner events?
6. Is there a Formal Partner Program?
· Do you have a formal partner program with defined business terms and conditions?
· Will you implement a tiering or structure in place for partner categories?
· Can partners access dedicated online portal with tools and resources?
· Is there a defined process for advancing tiers and partner recruitment goals?
These are some of the critical factors that your team should discuss and be prepared to address before engaging in any partnering activities. By aligning expectations, defining clear objectives, and investing in mutual success, you can create a winning environment for all stakeholders. A strong partnership is more than just an agreement—it’s a shared commitment to growth, innovation, and long-term success.