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Many tech ecosystems err by applying a single program to diverse partners (MSPs, service firms), incentivizing only initial deals instead of long-term value, and creating a difficult partner experience through complex processes and high staff turnover.

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Vendors often fail MSPs by offering a single, generic certification path for all partners. MSPs require practical, operational guidance beyond basic product knowledge. This includes runbooks for common scenarios and specific training on managing a platform at scale across multiple customer tenants, not just deploying it once.

Despite partnerships being the primary revenue driver in B2B SaaS, the vast majority fail. Jon Mead identifies the root cause as a lack of strategic planning and partner selection, rather than a lack of trying, highlighting a massive, systemic problem in the industry.

Cisco moved beyond traditional geographic customization in its new partner program. It now prioritizes accommodating different partner sizes ('t-shirt sizing') and diverse business models (like managed services or advisors). This modern approach favors a globally consistent framework that adapts to business function rather than location.

Don't add tiers or partner types to your ecosystem without a corresponding increase in resources. A more complex program requires more skilled alliance managers and sophisticated partnership management technology to run effectively and avoid conflict with internal operations.

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.

Applying a traditional reseller model to MSPs fails because their economics differ. MSPs need predictable, aggregated volume-based pricing to operate with agility, rather than fluctuating per-deal costs. A fit-for-purpose program must also redesign support, billing, and legal frameworks around the MSP's business model.

Vendors often create overly sophisticated partner programs, believing more features add more value. However, complexity hinders adoption because partners lack the time to understand intricate systems. Simplicity is not just a preference; it is a prerequisite for effectiveness. A straightforward program will always outperform a complex one.

Instead of letting a partner program evolve organically, start with a clear vision of the ideal channel based on board-level metrics. Actively build towards that future state, which includes strategically stopping activities that only service a legacy model.

Individual sellers, driven by quarterly targets, may try to reduce partner margins on deals where they "did all the work." A well-designed partner program must enforce fair compensation regardless of a single deal's dynamics. This ensures partners can reinvest in future growth, prioritizing the long-term health of the ecosystem.