When it comes to keeping your technology startup or services business healthy and thriving in uncertain times, there is no better lifeline than qualified leads. Without a steady stream of leads, it can be challenging to attract new customers and generate sustainable revenue. But how can a startup establish the level of trust needed for a new audience to commit, especially when just starting out?
This is where Meylah’s “Better Together” co-sell GTM strategy comes into play.
In 2023, “co-sell” dominated cloud marketplaces, with a staggering 17% of the $13 trillion B2B (business-to-business) spending dedicated to it. This seismic shift has opened doors to new customer segments and untapped revenue streams, creating an enticing business opportunity. But before we delve into the details of the “Better Together” GTM co-sell strategy, let’s first establish what “co-selling” means.
Co-selling is a collaborative GTM partnership between SaaS (software as a service) companies and large cloud hyperscalers, 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 technology solutions and services to customers. Essentially, co-selling is joining forces with cloud hyperscalers to create joint solutions, attract customers, and leverage their sales and customer success teams to drive value for existing customers.
Since July 2023, co-selling with cloud marketplaces has become the new gold standard. These marketplaces are now essential for forging prosperous partnerships with cloud services that ultimately enrich your business, your buyers, and your partners.
In the cloud co-sell model, the transformation happens on three levels simultaneously. The first level is product-led, meaning the product is built on a hyperscaler’s cloud infrastructure. On the second level, the joint solution generates usage-based monthly recurring revenue (MRR), which can be seen as billed revenue or cloud consumption revenue. Finally, on the third level, growth occurs when the solution-based offer is available on cloud marketplaces to help customers transact and onboard using a trust-based buying engine to meet their cloud demand and budget constraints.
The basis of the co-sell GTM strategy
The basis of the co-sell GTM strategy is built on intimately understanding the problem and debunking the most common myths surrounding the partner experience. The problems that most partners are currently facing include poor alignment, difficulty in reaching annual recurring revenue (ARR) goals, driving GTM efficiency, lack of understanding in complex investment planning and return on investment (ROI), and inadequate measurements and tracking methods.
Meylah 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.
Guiding principles for a successful co-sell GTM strategy
When crafting your co-sell GTM strategy, adhere to these five guiding principles:
- Alignment is key: Successful partnerships require alignment not just 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 5x ROI: To justify investments and partnerships, it’s crucial to set high expectations for ROI. A minimum of 5x ROI ensures that resources are allocated efficiently and that the partnership brings tangible benefits.
- Streamline your GTM plan: Funding should come from multiple sources, meaning a streamlined and focused GTM plan ensures that efforts are concentrated on key objectives. Additionally, funding from multiple sources diversifies support and minimizes dependency on a single entity.
- Transactable via marketplaces: In an increasingly digital world, the ability to transact through online marketplaces is essential. Making your joint customer offering accessible in this manner enhances convenience and scalability.
- Invest strategically: This can be the catalyst for capturing the attention of hyperscalers. These investments not only demonstrate commitment, but also showcase your company’s potential for growth and innovation.
The essential documents for a successful co-sell partnership
After identifying your co-sell partner, there are four essential documents that every prospective partner must have in place when engaging with hyperscalers:
- The co-sell GTM assessment
- The #BetterTogether company information evaluation
- The co-sell solution-offer information breakdown
- The GTM plays and investment model
1. The co-sell GTM assessment
This document helps you understand your partner’s current GTM strategy and areas for improvement. It should include an analysis of your partner’s target market, their unique value proposition, and their current approach to sales, marketing, and customer success.
2. The #BetterTogether company information evaluation
This document assesses your company’s readiness to become a co-sell partner. It should include an evaluation of your company’s overall strategy, target market, value proposition, and resources available for the partnership.
3. The co-sell solution-offer information breakdown
This document outlines the joint solution-offer that you and your partner will be selling together. It should include details on the product or service, the unique benefits for customers, and how you will go to market together.
4. The GTM plays and investment model
This document outlines the specific strategies and tactics that will be used to go to market with your co-sell partner. It should also include a detailed breakdown of the investments required from both parties and the expected ROI for each investment.
By following these principles and having these documents in place, you can set your co-sell partnership up for success and ultimately drive growth and innovation for your business. So, don’t be afraid to explore the world of co-selling with cloud hyperscalers – it could be the key to unlocking new opportunities for your business.