Partner-to-Market: When to Partner & Why

A newsletter about partnerships strategy &
operations by Bernhard Friedrichs

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TL;DR

• The way B2B SaaS companies use partnerships is changing big time.

• They impact key areas like customer value, acquisition costs, market entry speed and innovation, and risk.

• The Growth stage determines which partnerships make sense.

• The bowtie model reveals how partnerships create value across the entire customer journey - from acquisition through retention and growth.

• Free Download: Partnership Impact Calculator (exclusive for subscribers) 👇

Here's what I keep hearing in my talks with SaaS founders and GTM leaders:

"We know partnerships matter. We've got a list of partners. But how do they actually help us grow?"

Sound familiar? You're not alone. Even companies with solid partner programs often struggle to nail down their real impact.

"We just signed ten new partners!"
"Great... but what do they actually do for your business?"

Teams celebrate new partnerships, but struggle to show their real impact on growth. They know partnerships matter - everyone says so. But turning partner logos into actual business value? That's the hard part.

Let's be clear about which partnerships work at your growth stage, how to measure their real impact, and where they fit in your customer journey.

Despite partnerships being widely recognized as valuable in B2B SaaS, there's still confusion about what partnerships really mean and how they fit into modern business growth strategies.

A fundamental shift is happening in how we understand partnerships' role in B2B SaaS. While traditionally viewed primarily as revenue generators, modern partnerships contribute across four critical areas:

1. They lift Customer Lifetime Value by creating more sticky, valuable solutions.

2. They reduce Customer Acquisition Costs through shared marketing and sales efforts.

3. They speed up your time to market and boost innovation.

4. They help reduce business risks through diversification.

What's interesting is how these partnership impacts line up with what Winning by Design points out as the core goals of any Go-To-Market team: driving revenue growth, optimizing operational costs, and improving product quality (see Book Prologue: Revenue Architecture)

This suggest partnerships evolve from being seen as a supporting function to becoming an integral part of the overall go-to-market strategy, from product development to customer success. Modern B2B companies will embed partnership thinking into every aspect of their go-to-market motion.

To understand how partnerships can drive your business growth, we need to look at two key questions:

1. When do you need which category of partnerships?

2. What exactly do these partnerships do for your business?

Let's dive into the first question, as it's crucial for where you put your resources.

When do you need which category of partnerships?

As a founder or GTM leader, you know resources are precious. Your growth stage largely determines which partnerships will give you the best return right now.

The illustration below shows the typical partnership focus areas across different growth stages.

The matrix shows how partnership priorities shift as companies grow from Seed to Post-IPO stage. While larger companies can engage across all partnership types, early-stage companies need to focus their limited resources on partnerships that deliver the impact required.

Seed Stage

When you're just starting out with your product vision, every partnership needs to prove its worth fast. Focus on Product Partners who can provide the specific integrations your early customers are asking for. These should be features that help you nail your product-market fit. Build relationships with Marketing Partners and get involved in early adopter communities for feedback. Don't get caught up in complex Channel or Service Partner programs yet - they'll just drain your time when you need to focus on getting your product right.

Startup Stage

Now you're getting your first real market validation and paying customers. It's time to carefully pick Product Partners who can make your core offering stronger. Look for Marketing Partners who can help you reach more customers. You might want to test simple Channel Partner programs, but remember - just offering commission isn't enough. You need to create real value for partners. Consider Service Partners to fill gaps in what you can deliver. The best partnerships at this stage often come from companies facing similar challenges who want to work together on marketing and product initiatives. Stay away from exclusive deals with big enterprises unless you're aiming for an early exit.