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.
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)