For its high-touch VR training product, direct sales were uneconomical due to high travel costs for a relatively low ACV. SkillVari built a network of 10 regional resellers, enabling local, in-person demos that are crucial for closing deals and scaling nationally without an expensive sales team.
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For its $5k average deal size, SkillVari found a direct US sales model unviable, as travel costs could erase profits. Instead, they built a network of 10 regional resellers, incentivized with commissions up to 20%, to provide local, hands-on demos and support.
To scale its reseller program, SkillVari uses a variable commission structure. Resellers who require significant handholding on deals earn a low commission (3-4%). Those who operate independently, managing the entire sales cycle, earn a much higher rate (up to 20%). This incentivizes partner self-sufficiency.
After pivoting from hardware to software, SkillVari found value in reintroducing proprietary hardware (like a $2,500 welding gun) as optional accessories. This hybrid model leverages commodity headsets while capturing additional revenue and creating a more immersive, defensible user experience.
SkillVari adapts its go-to-market strategy by geography. In the US, they focus on the large high school and community college vocational training market. Conversely, in Europe and Asia, their primary customer base consists of industrial companies conducting in-house employee training.
Instead of building expensive hardware, SkillVari's software runs on affordable, off-the-shelf headsets like Meta Quest. This allows a starting subscription of $4,000, drastically lowering the barrier to entry compared to competitors whose one-time purchase solutions cost over $35,000.
Rensprey, a rental software company, grew from $2M to $40M in revenue not through direct sales but through an innovative partnership strategy. Founder Michael Liccarelli created win-win situations for distribution partners, cracking a go-to-market motion that competitors couldn't figure out.
SkillVari uses a land-and-expand model where schools start with a low-cost software plan using standard VR controllers. As students advance, schools can purchase higher-margin hardware extensions like welding guns, increasing account value over time without a large upfront commitment.
Initially a hardware company, SkillVari's supply chain collapsed during the pandemic, sending revenue to zero. This crisis forced a pivot to a software-first model, allowing customers to buy off-the-shelf Meta or Pico headsets and load the software, creating a more scalable and resilient business.
SkillVari offers a core SaaS subscription starting at $4k that works with standard VR controllers, creating a low-cost entry point. They then upsell proprietary hardware extensions, like a $2,500 welding gun, for a higher-fidelity experience. This allows schools to start small and upgrade their programs over time.
While conventional wisdom suggests moving upmarket for growth, Sensei chose the opposite path to scale from $40M to $100M ARR. They partnered with Pax8 to target a vast number of smaller customers downstream, leveraging the channel's reach for a "10x proposition" without the heavy investment required for enterprise sales readiness.
