High top-line revenue is a vanity metric if it doesn't translate to profit. By setting a high margin target (e.g., 80%+) and enforcing it through pricing and cost management, you ensure the business is sane and profitable, not just busy.

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.

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.

For owners planning a future exit, the MSP model is far superior to a reseller's project-to-project structure. The stable, predictable monthly recurring revenue (MRR) from multi-year contracts is highly attractive to investors, creating a sellable asset independent of the owner's sales prowess.

A premium service tier provides the capital to pay your vendors more than competitors can. This secures priority service from them, which in turn lets you deliver a faster, superior experience to your own customers, creating a durable competitive moat built on your supply chain.

Managed Service Providers become indispensable to vendors like Microsoft and Google by adding $7-11 of high-value services for every dollar of product revenue they generate. This value creation gives them significant leverage and makes them a more respected and crucial part of the vendor's ecosystem.

Pricing is your most powerful lever. For a typical service business with a 10% net margin, a simple 10% price increase goes directly to the bottom line, effectively doubling the company's total profit without any additional operational cost or effort.

To successfully sell complex solutions like process automation and AI, resellers must first apply these principles internally. By re-engineering their own business to an MSP model, they gain the experience and credibility needed to guide clients through a similar journey, moving from vendor to trusted advisor.