Tomasz Tunguz Blog · 2016-05-05 · 3682d

Channel Sales Strategy: A Competitive Advantage for SaaS Companies

Channel sales are becoming increasingly important for SaaS companies as a distribution and revenue growth strategy, with successful implementations like Intacct generating over 50% of sales through partnerships. Unlike traditional software, SaaS companies can leverage reseller channels to scale revenue without proportional hiring, reduce cost of goods sold, and diversify customer acquisition. Strategic channel development requires dedicated internal teams to manage partner relationships and alignment, but offers sustainable competitive advantages as the SaaS market matures.

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Metrics in this report

Channel Sales Revenue Contribution

>50%

minimum

Intacct example company

SaaS Market Share Projection

20-40%

projected range

Overall software market future growth

SaaS Market Share of Software Revenue

14%

current

Overall software market at time of writing (2016)