when is he coming To keep your technology startup and/or services business healthy, especially in times of uncertainty, there is no stronger lifeline than qualified leads. To fill this funnel, buyers need to be sure that your solution, app or product is the best and most trustworthy option, and this is where things tend to break down. How can a startup determine the level of trust needed for a new audience to commit when they’re just starting out?
This is where Meylah’s “Better Together” strategy in GTM co-selling comes into play.
With a staggering 17% of $13 trillion in B2B spending, “co-selling” will dominate cloud markets in 2023. With this seismic shift, the floodgates have opened to reveal new customer segments and revenue streams. Untapped, paving the way for an attractive business opportunity. Before I get into the details of the GTM “Better Together” co-selling strategy, I want to lay the groundwork for what “co-selling” means.
Co-selling is a collaborative GTM partnership between SaaS (Software as a Service) companies and large cloud scalers such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP) and others. This partnership involves a joint effort to build, market and sell joint technology solutions and services to customers. At its core, co-selling is joining forces with cloud scalers to jointly develop solutions, attract customers, and leverage a partner’s sales and/or customer success team to bring value to existing customers.
Since July 2023, co-selling with cloud marketplaces has become the new gold standard, as they are intricately intertwined and essential to forging thriving partnerships with cloud services that ultimately enrich your business, buyers and partners.
In the cloud co-selling model, transformation occurs at three levels simultaneously. Tier 1 growth is product driven, meaning the product is built on Hyperscaler’s own cloud infrastructure. At the second level, a common solution is usage-based monthly recurring revenue (MRR), which looks like billed revenue or cloud consumption revenue. Finally, at the third level, growth occurs when a solution-based offering becomes available in cloud marketplaces to help customers transact and join a trust-based purchasing drive in order to meet cloud demand and budget constraints.
The foundation of a GTM co-selling strategy is based on a deep understanding of the problem and debunking the most common myths about the partner experience.
The foundation of a GTM co-selling strategy is based on a deep understanding of the problem and debunking the most common myths about the partner experience. The issues most partners currently face are poor alignment, achieving annual recurring revenue (ARR) goals, increasing GTM efficiency, opening new routes to market, improving sales productivity, and a lack of understanding of complex investment planning and return on investment (ROI), which leads to poor metrics and tracking inactive.
Mila played a critical role in supporting Microsoft’s launch of the #buildfor2030 initiative, focusing on what startups need to become “co-sell-ready” with cloud marketplaces.
When crafting your GTM co-selling strategy, adhere to these five guiding principles:
- Alignment is key: Successful partnerships require alignment not only in goals, but also in mindset and philosophies. When both parties share a common vision and approach to business, the partnership is more likely to flourish.
- Expect up to 5x ROI: To justify investments and partnerships, it is necessary to set high expectations for return on investment. A minimum 5x ROI ensures that resources are allocated efficiently and that the partnership delivers tangible benefits.
- Simplify your GTM plan: Funding must come from multiple sources, which means a streamlined and focused GTM plan ensures efforts are focused on key objectives. In addition, funding from multiple sources diversifies support and reduces dependence on a single entity.
- Possibility of dealing across markets: In an increasingly digital world, the ability to transact through online marketplaces is essential. Providing access to your shared customer view in this way enhances convenience and scalability.
- Invest strategically: This can be an incentive to attract the attention of expanders. These investments not only demonstrate commitment, but also demonstrate your company’s potential for growth and innovation.
After identifying your co-selling partner, there are four essential documents every potential partner should have when dealing with hyperscalers: GTM Co-Selling Evaluation, #BetterTogether Company Information Evaluation, Co-selling Solutions Presentation Information Distribution, and GTM Plays and Investment Model. The following sections cover what each document is and why it is important.