Did you know that companies that invest in partner program integration see a higher ROI? Partner programs are a great way to boost sales and create brand awareness. Teaming up with the right partners can be a valuable addition to your marketing mix when done correctly. If you’re on the fence about investing in partner programs, check out these five partnership stats that will make you want to get involved in partner programs today.

Five reasons you need to invest in a partnership program

In today’s B2B SaaS world, it’s all about channel partnerships. Investing in a partner program is the new wave of doing business, and for good reasons. By partnering with other companies, your and your partner’s profitability can increase and create a more efficient and effective operation.

You can also tap into new markets and reach new customer bases, which can help you to grow your business. Furthermore, partnerships can help you to mitigate risk and build a more substantial reputation. So if you’re looking to take your business to the next level, investing in a partnership program is the way to do it.

1. Channel partner programs can generate 30% of a company’s revenue.

But have 1/3 the number of salespeople.

As of 2022, 95% of Microsoft‘s revenue is through partners. There is a mutual value exchange through dollars, exposure, branding, content, or support. The primary benefit for Microsoft is that they don’t need to sell their own product – other people (including resellers) and businesses do it for them. That means fewer employees to pay (not only salary but benefits, all additional overhead costs, etc.).

The reason partners engage in this, however, is twofold:

A. Partner Enablement

• Microsoft sets existing and new partners up for successful execution at the start through onboarding.
• They support them — this includes marketing support. They have people’s power behind them to measure their partners’ performance metrics.
• They give them assets — ready-made, deployable resources and management platforms like partner portal, the ultimate guide to partner strategy, marketing strategy,

Without this, no organization or individual will be compelled to take action on behalf of your business.

HubSpot is another excellent example of doing it right. You can start an entire business on the back of Hubspot (and they’ll train you to do so).

This is what thriving partners look like. Hubspot and Shopify saw this opportunity and leaned in during the pandemic. Now, their valuations have skyrocketed.

B. Outcomes are obvious

• Microsoft gets $9 on their own services/markup for every $1 Microsoft makes.
• Shopify made $673 million in 2017, while their partners made nearly $800 million.

Enough said on that front; the proof is in the pudding. The partner incentive program is now “dollars are being left on the table.” This isn’t to say that it’s easy to run a channel program, but there are parallels here.

2. 75% of world trade flows indirectly (AKA partners)

(Source: Forrester)

It can be through your integrators, communities, podcasts — you name it! As the world becomes increasingly interconnected, trade flow has taken on a new form. Once the trade is conducted directly between two parties, it is common to flow indirectly through a network of partners.

According to recent estimates, indirect trade accounts for 75% of all world trade. This shift has been driven partly by the rise of e-commerce and the globalization of supply chains. Businesses have become more interconnected, and the need for direct trade has diminished.

Instead, businesses can often source the goods and services they need from partners worldwide. This change has profoundly impacted the global economy and will likely continue to shape the future of trade.

3. Sales touched by partnerships close at a higher velocity and initial contract size.

(Source: Various)

Sales representatives are always looking for an edge. Whether it’s a new sales strategy or a lead generation tool, they’re always looking for something that will give them an advantage over their competition. One way to get an edge is to involve partners in the sales process.

Studies have shown that prospects are more likely to buy when partners are involved and that sales close at a higher velocity and initial contract size when partners are involved. This is because prospects perceive partners as more credible and trustworthy than sales reps alone. As a result, applying partners in the sales process can significantly increase your chances of success.

4. Millennials are 247% more likely to be influenced by blogs or social networking sites.

(Source: Marketing to Millennials)

And 84% distrust advertising — they don’t want to hear it from you. It’s no secret that millennials are a hard group to reach. They’re inundated with advertising from the moment they wake up to the time they go to bed, and as a result, they’ve developed a healthy skepticism of marketing messages.

That’s why more and more businesses are turning to influencer marketing as a way to reach this elusive demographic. Companies can tap into millennials’ desire for authenticity and positive word-of-mouth recommendations by partnering with famous bloggers and social media personalities.

So if you’re looking to reach millennials, influencer marketing may be your best bet. It’s better to be ahead of the curve or in line with the CURRENT trend.

5. Partner ecosystem strategies are a defining factor for future-ready companies.

(Source: Accenture)

Companies that are future-ready understand the importance of ecosystem partnerships. No company can operate in a vacuum in today’s business landscape — it’s about working together to create a mutually beneficial relationship. Businesses can tap into new markets by forming strategic partnerships with other companies, sharing resources, and creating a competitive advantage.

Future-ready companies know that these partner relationships are essential for long-term success and are always looking for opportunities to form new relationships. Companies can position themselves for continued growth and scale by investing in ecosystem partnership strategies.

BD Paths’ Takeaway

Ecosystems and Partnerships will replace S/BDR activity in the next few years. We’re seeing it begin already. Social proof and word of mouth are far more potent than an outbound email, warm or cold.

Partnerships impact you and the business, whether in sales and marketing or product and success. So, is your partner team a “test” or an essential part of the business? Is it purely revenue focused or holistic? Don’t go at growth alone. Life’s better together, especially with friends.