OnDemand WTP Pricing Research

Per-Partner Pricing: A Penalty for Success | Averetek

How does this relate to per-partner pricing?

In the world of hosted software or programs for channel partners, there’s always a discrepancy between how many partners CAN participate and how many ACTUALLY participate. You can’t control human behavior, especially the behavior of channel partners. You can try to influence it, but you can’t control it.
If the software or program you’re offering your channel partners has fixed pricing for unlimited users, you’re on easy street. You can turn in your marketing expense forecast and always hit your target. You’ll have no unexpected expenses, and you can focus on driving utilization of the program with your partners.

If the software or program you’re offering your channel partners has user-based pricing (based on actual users logging in), the variable nature of that arrangement almost guarantees that you’re going to blow your forecast, at some point. When you least expect it, and if your luck is like mine, you’ll get an invoice from your vendor saying something to the effect of “Congratulations! You’ve reached X number of users! You’ve moved into the next pricing tier. Attached is your invoice. Please pay on time.”

This is when per-partner pricing becomes a penalty for being successful. You’re successful because you’ve engaged more partners than ever before, which is typically the main objective of every tool or program for channel partners. The penalty comes in when you’re pushed into the next pricing tier or per-user license and it’s time to ante up.

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Per-Partner Pricing: A Penalty for Success.

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