On Sales & Growth

Distribution partnerships can give you broad client access, but distributor control over sales process can slow you down.

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Entering into a distribution partnership with another software vendor is an excellent opportunity for your business to gain access to a broader audience, increase your sales revenue, and establish a foothold in a new market.

However, there can be some downsides to this arrangement:

- The distributor may have control over the sales process, which can lead to delays in closing deals or complications.

- The distributor may have different priorities than your business, which can lead to conflicts over the direction of the partnership (e.g. the distributor may prioritize their existing products or services over yours, or may not invest enough resources into promoting and selling your software.)

To mitigate these risks:

- It's essential to have a clear legal agreement in place with the distributor that outlines the terms of the partnership, including quota / success metrics, roles and responsibilities, pricing, marketing, and support.

- It's also important to establish regular communication and feedback mechanisms to ensure that both parties are aligned and working together to hit the quota and success metrics.

Premature scaling is a kiss of death. Beware of early sales success.

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Early sales success can be tempting, but don't let it trap you into sticking with your initial hypothesis.

It's a common pitfall for founders to avoid experimenting with new markets, as it can be challenging and takes focus away from solving the core problem.

However, being open to new possibilities can lead to greater success in the long run.

Interestingly, West Coast startups seem to have an advantage over their East Coast counterparts when it comes to scaling operations relative to sales success.

They understand that true sales success means being overwhelmed with inbound demand, to the point where implementation teams struggle to keep up.