Partner Hypothesis

A newsletter about partnerships strategy &
operations by Bernhard Friedrichs

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TL;DR

• A Partner Hypothesis helps you test your partner strategy before investing time and resources

• Most partnerships often because companies don’t check partner fit first

• Clear market validation criteria and testing are crucial for success

• Real examples show how to evolve your hypothesis based on market feedback

• Free Download: Partner Hypothesis Template (exclusive for subscribers) 👇
  

  You’ll find the latest version of the guide in the Knowledge Hub.

Hi there,

Does this sound familiar?
"We signed ten new partnerships last quarter! But honestly... nothing's really happening with any of them."

You're not alone. Even companies with “established” partner programs often struggle with the "paper partnership" problem - agreements that look great in theory but generate no actual value.

This is often an error by design and the cause was created early when setting up the partner program.

Let's dive into how to avoid this common pitfall and build partnerships that actually drive growth.

Why you should always start with a Partner Hypothesis

Before you look for partners or even create your Ideal Partner Profile (IPP), you need a way to check if your partnership strategy makes sense. That's where the Partner Hypothesis comes in.

Think of it as step zero in building your partner program. While IPP helps you grow an existing program, the Partner Hypothesis comes first - it tells you if your partnership idea works at all.

You might not always need an IPP (like when you're targeting just a few partners), but you should always start with a Partner Hypothesis.

The Partner Hypothesis

A Partner Hypothesis helps validate your partner value proposition by clearly defining who your potential partners are, why they would partner with you, and how they align with your partnership strategy.

Think of it as your partnership "business case" - it helps you avoid signing partners just because they're interested, rather than because they truly fit your strategy.

Here's what you need for a solid Partner Hypothesis:

1. Partner Classification

The first step is clearly defining your target partners. This goes beyond just knowing what type of company they are - it's about understanding their complete role in your ecosystem.

I recommend breaking this down into three key dimensions (detailed in my Partner Categories, Partner Types and Partner Business guide):

• Partner Category: Their strategic contribution to your business

• Partner Type: Their specific operational role

• Partner Business: Their own core business model and focusFor example, if you're targeting digital marketing agencies as resellers, you need to consider:

Let me illustrate this with a real example. Say you're targeting digital marketing agencies as resellers. You'd need to understand:

• They're Channel Partners strategically - helping expand your market reach

• They operate as Resellers - directly selling and implementing your solution

• Their core business is marketing services - your product should enhance this

This clear picture helps you work well with partners from day one. It also stops you from trying to make partners work in ways that don't suit them.

2. Value Proposition Match-Up

Often partnerships fail because companies focus too much on commissions and product features. Yes, these matter - but they're not what keeps partners around long-term.

Why? Because selling your product isn't their main job. They have their own goals and growth plans. Your partnership needs to help with these bigger aims.

What really keeps partners committed:

📈 Growing Their Business:

• Turn one-time projects into steady income

• Add new services

• Enter new markets

These often bring in 3-5 times more money than product commissions alone.

🏆 Better Market Position

• Help them stay ahead of competition

• Solve bigger customer problems

• Build stronger client relationships

🚀 Innovation Benefits

• Early access to new tech

• Help them lead market trends

• Support their growth as the industry changes

When a partner only cares about commissions, they'll leave when someone offers more. But when you help them grow their whole business? That's when partnerships last.

A digital agency might like your 30% commission, but what keeps them engaged is how your solution helps them move from one-off projects to long-term client relationships. The commission becomes a nice extra, not the main reason they stay.

Here is a detailed guide on how to create a Partner Value Proposition.

3. Partner-ICP Intersection

This is where theory meets reality. Many partnerships look great on paper until you realize how partners actually work with your target customers.

Picture your ideal customer's journey. Now visualize where potential partners naturally fit into this picture. Do they:

• Already advise your target customers about solutions like yours?

• Have established relationships with key decision-makers?

• Get involved at the right moment in the buying process?

Take IT consultancies partnering with HR software vendors as an example: While consultancies might have strong CTO relationships, HR technology may rarely come up in their conversations. In contrast, HR consultants might have fewer total relationships but drive better results because HR tech naturally fits into their client discussions.

This brings us to an important point: The strength of a partnership isn't measured by the total number of customer relationships, but by the relevance of those relationships to your solution. The small specialized agency might be a bigger partner than the global network agency could ever be for your product.

3. Market Validation

Now we move from theory to reality - finding actual companies that fit your idea. Make a simple check list:

• Company (name size, market presence)

• Key strengths and capabilities

• Initial fit assessment

The largest companies often score lowest in partner fit. A global player with 1000+ employees might look impressive but typically lacks the focus needed for a successful partnership. Meanwhile, mid-sized companies with clear market focus often make the strongest partners.