SaaS companies scale revenue not by adjusting price points, but by creating distinct packages for different segments. The same core software can be sold for vastly different amounts to enterprise versus mid-market clients by packaging features, services, and support to match their perceived value and needs.

While individually small, the collective business from your "long tail" of partners creates a huge compound effect, forming a significant part of your overall revenue. This justifies investing in scalable, simple programs and a two-tier distribution model to serve them. This long tail provides essential market reach and commercial proximity that larger partners cannot.

Shift partner tiering away from being solely based on sales volume. Instead, use a partner's investment in training and certification as the main parameter. This approach rewards commitment and capability, which are leading indicators of future success. It allows smaller, highly-invested partners to be recognized and supported appropriately.

For consumption-based models, simple size-based segmentation (SMB, Enterprise) is insufficient. Stripe and Vercel use a two-axis model: company size (x-axis) and growth potential (y-axis). A small company growing at 200% YoY is more valuable and warrants more sales investment than a large, stagnant one.

Beyond not competing with partners, genuine trust is built by preventing "extreme favoritism to the bigger partner." Partners watch to see if you provide a level playing field for everyone, regardless of size. Trust is also solidified by how you act when things go wrong; a vendor that "shows up" during a crisis builds loyalty.

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.

To truly meet partners where they are, align your internal team structure with your partner segmentation strategy. Create dedicated internal groups specializing in different partner types, such as one team for advisory MSSPs and another for high-volume resellers. This ensures partners interact with managers who deeply understand their specific business model and needs.

In a B2B supplier or distributor model, success depends on going downstream. You must understand not only your direct partner's business drivers and KPIs but also the needs of their end-customer. This allows you to align strategy across the entire value chain.

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.