SaaS Channel Compensation

SaaS Channel compensation is one of the hardest things that software vendors are facing today. If you have a nice traditional software business model with good software maintenance revenue and mature channel, you are reluctant to change or touch it. Let’s dive into some of the difficulties that software vendors are experiencing. I am currently…

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Complexity of Building a SaaS Software Channel Program

In my previous blog entry, I discussed about the complexity of channel development and channel alignment. I recommended for SaaS software vendors to use Business Model Canvas to compare the business model with the assumed business model of its prospective channel partner. During the past few months I have spent time building a SaaS channel…

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Business Modeling is a process and requires experience

Everybody talks about business models and business modeling, but not many have been exposed to different types of scenarios and organizations when applying it. I learned today after having talked to a person that had used Business Model Canvas in the past and felt that the use was a bit messy.  I am not surprised about…

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Complexity of Channel Development for SaaS Software Vendors

Channel development can be complex if you have a SaaS solution and you want to ensure that your growth comes through the channel. I have spent my past 20 years involved in software channel development on many continents and I have seen many different variations in both failure and success. I think the biggest obstacle for many…

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Chicken and egg – sustaining revenue model first?

I had an interesting discussion this week about whether a software company should have its revenue model defined first, or should the software company be focused on other factors such as value proposition and market segmentation. The question by itself is very interesting and typically our initial “gut feel” is to analyze first how much…

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Pricing alone does not make your business model

Most software vendors (ISVs) struggle how to price their solution, specifically when moving the cloud. Many vendors are trying to “retrofit” the current model to the new cloud model, but this just does not work. You just can’t make your pricing to reflect your current business model where everything is based on higher cost structure…

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Aligning your business with your ecosystem

Your business is always part of an ecosystem. So is mine. I am completely aligned with Microsoft business cycle that starts 1st of July and ends last of June. Therefore Microsoft Worldwide Partner Conference (WPC) is the most important event for me and my TELLUS team. Why? Because during WPC I will get the first…

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