For businesses with one-off projects like architecture, true revenue retention comes from "chunking up." Instead of focusing on the end customer, build a sales and retention motion around the referral partners who provide a consistent stream of new projects.

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.

SaaS companies often use the traditional top-down sales funnel as their mental model. However, this model is fundamentally flawed because it ends at the 'close' and completely ignores the recurring revenue component, which is the lifeblood of SaaS. The 'bow tie' model is a more accurate representation.

Founders often mistake $1M ARR for product-market fit. The real milestone is proven repeatability: a predictable way to find and win a specific customer profile who reliably renews and expands. This signal of a scalable business model typically emerges closer to the $5M-$10M ARR mark.

Investors and acquirers pay premiums for predictable revenue, which comes from retaining and upselling existing customers. This "expansion revenue" is a far greater value multiplier than simply acquiring new customers, a metric most founders wrongly prioritize.

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.

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.

Buyers pay a premium for predictable income, not just high revenue. Even non-SaaS businesses, like a home builder, can create valuable "durable revenue" by adding contract-based services like lawn care, significantly increasing enterprise value.