When to spend cash in a SaaS business

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Selling SaaS via Distribution

In a "Grow or Die" world that's becoming increasingly crowded with multiple SaaS offerings per category, it's difficult to find the right balance between investing in a direct sales force vs. taking a go-slow approach. One way for SaaS providers to build marketshare without bleeding cash up-front is to leverage a reseller channel.

But building a channel takes time, particularly one that has experience selling subscription-based services with an operations and support infrastructure to back them. A way to bootstrap this effort is to work with a wholesaler or SaaS aggregator who has access to existing SaaS resellers, which Jamcracker (http://www.jamcracker.com) does on behalf of several dozen different SaaS providers. This is the 'SaaS' version of how traditional packaged software wholesalers have bridged SW ISVs with the VAR channel.

The Jamcracker distribution network comprises several hundred VARs, MSPs, regional service providers, and global carriers. The smaller ones work with us and our ISV partners as single-tier resellers, whereas our larger distribution partners use our services to setup private-labeled marketplaces that support a multi-tiered distribution model.

Not all of our distribution partners are capable or willing to take on every new SaaS offering we add to our catalog, so we work closely with our ISV partners to understand their channel profiles and then pursue the appropriate resellers accordingly.

If interested in seeing the types of SaaS ISVs who are augmenting their growth with a channel model, visit http://www.saascatalog.com

Best regards,
Steve

Posted by: scrawford@...   Posted on: 12/01/08 You are currently: a Guest | Members login | Terms of Use

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