The top 5 pitfalls of joint Go-to-market operations!
My definition: “Going to market means introducing a product or service to a new buyer persona.”
When you are entering a new go-to-market with a 3rd party (partner), you are accepting the risks that come with this complicated motion. The risks you accept are based on the simple fact the other org's actions are out of your control for the most part. This is why it's crucial you not only choose the right partners but that you prepare and execute effectively.
Regardless, you may come across one or multiple of these 5 pitfalls:
- Channel conflict.
- Contract roadblocks.
- Services cannibalization.
- Inconsistent branding.
- Procedural collapse
#1 Channel conflict.
This occurs in programs with high-ticket software and commissions promised to both partners and salespeople. A salesperson will claim influence over the same deal a partner referred in and wants commissions already promised to the partner. If you pay them both, you will lose money on the deal... Hence the conflict.
To prevent this: Get rid of commissions. If your ACV (average customer value) is under $10,000, do not make partner commissions a part of your incentive structure. It will only create dependencies for tracking, management, taxation, and bookkeeping, your CRO will hate you... and channel conflict. Instead, consider paying a partner once if/when they (a) ask for it, and (b) sell a bigger ticket account. Build your partnerships based on shared revenues from joint clients, reciprocity, and referrals... Share revenue in the form of putting the money back into the partnership with a funded GTM co-marketing campaign.
#2 Contract roadblocks.
Putting contracts in front of partners too soon, or with clauses that are too restrictive, or asking for too much... can halt a go-to-market in its tracks.
How to prevent this: Be careful with contracts. Wait until you have found alignment and are ready to prep before you produce any NDAs or partner agreements. Avoid exclusivity clauses in most circumstances. i.e. Asking partners not to recommend or partner with a "Competitor" (in quotes because it's subjective).
#3 Services cannibalization.
For software companies also selling a service package, their salespeople making commissions on sales of that package would be cannibalizing, or taking, the potential service revenue from the partner.
To prevent this: Do not sell services and try to partner with service providers... I've seen it a few times in recent history and it never works. Instead, calculate what CS costs are for a new user, and offer to pay your select expert partners that fee as a project for setting that new user up correctly. That's a win-win-win because your customer gets a better holistic setup, you get a happy partner, and they get a new lead with a little money for their time.
#4 Inconsistent branding.
If not executed correctly, your partnership's GTM campaign can be a branding free for all... Partners want to do well and work quickly. If they do not have the assets they need, they will often create their own. This means, in most cases, these videos, presentations, decks... will all be off-brand.
To prevent this: Make sure you have all your team's partner operating procedures buttoned up before you launch. This means CS knows what to do when CC'd on a partner referral thread... Sales know when and how to find and bring the right partner into a deal... The product team knows who to bring onto roadmap discussion calls... Marketing has all the approved assets in one place and knows how to train the partner on co-marketing campaigns.
#5 Procedural collapse
Given the complexity of two companies that operate in their own way coming together to try and execute the same thing... the procedures are bound to come unglued. My team zigs, but your team zags... Overall, the GTM operation looks ill-planned at best.
To prevent this: Both teams need to align on who is going after which targets, in which channels, with which messaging, under who's supervision, with what checks and balances. Outline that in a Partner Memorandum (specific to your GTM agenda), consider adding penalties if either team breaks the agreed-upon role definitions (potentially docking any fees owed for referrals or MDFs). Make sure you have all your team's partner operating procedures buttoned up before you launch. This means CS knows what to do when CC'd on a partner referral thread... Sales know when and how to find and bring the right partner into a deal... The product team knows who to bring onto roadmap discussion calls... Marketing has all the approved assets in one place and knows how to train the partner on co-marketing campaigns.
By knowing and avoiding these pitfalls, you are also helping to preserve the strategy of joint GTM for the future of efficient growth. It's a right and a privilege to work with 3rd parties to extend the reach of your brand.
So, plan ahead, choose the right partners, prepare... and don't F#@K it up for everyone else 😉
I hope this was helpful!