Smartsheet's partner value proposition extends beyond resale margins. The company strategically positions partner-led professional services (implementation, integration) as essential for its own success. These services drive customer adoption, which in turn leads to higher retention rates for Smartsheet's core software.

Channel strategy shouldn't be reactive. Leaders must define their ideal partner ecosystem for 3-5 years out and proactively build towards it. This requires a vision-led approach and a willingness to stop servicing legacy models that don't fit the future.

The number one factor for customers choosing a partner is now industry expertise and consultation, surpassing pricing and product catalogs. This signals a fundamental market shift requiring partners to move away from a generalist approach and instead develop deep, specialized knowledge in vertical markets to build trust and differentiate themselves.

The shift from transactional to solution selling is difficult because channel economics are traditionally built on volume. Partners are hesitant to invest the extra time required for consultative selling when the immediate financial incentive isn't there. Vendors must bridge this gap with co-selling, co-creation, and enablement to prove the ROI of a value-based approach.

The traditional MSP 2.0 model of reselling software seats is no longer profitable. The next evolution, MSP 3.0 or "BSP" (Business Solutions Provider), focuses on consulting and managed services to solve core business problems, shifting the revenue source from software margins to service-based value.

The financial incentive for resellers to transition to a Managed Service Provider (MSP) model is stark. Top MSPs operate at 50-60% margins, a completely different league from the 8-20% margins typical for project-based resellers, which often yield only 1-3% EBITDA.

Traditional revenue tiers (Gold, Silver, Bronze) are vendor-centric. A more effective approach is to classify partners by their business model. For example, an MSSP needs predictable upfront costs to build a service, while a value-added reseller may prefer volume-based rebates. Tailoring your program to their model, not just their size, is key.

Vendors and TSDs get lost in partner labels. The critical distinction is the partner's business model: Do they want a residual commission, to resell on their own paper, or a one-time payment? Offering this flexibility is key to recruiting and enabling modern partners.

“Partner Lifetime Value” reframes partnerships as long-term assets, not transactional wins. Companies committing to consistent, long-run partnerships achieve superior growth and profitability, creating a force multiplier effect far beyond standard customer lifetime value.