The Challenges ISVs Face When Implementing a Partner Enablement Program

PUBLISHED BY JASON SMITH

As Independent Software Vendors (ISVs) move into their second phase of growth—often through organic expansion or funding rounds like Series A or B—they frequently look to expand their reach through a channel partner program. By recruiting Solutions Integrators (SIs) or Value Added Resellers (VARs), ISVs can amplify their sales and adoption efforts. However, the process of identifying, recruiting, and enabling partners can be fraught with challenges, often costing valuable time and resources.

One of the most significant hurdles is the time it takes to get a partner program off the ground. Typically, ISVs will first spend around three months conducting an executive search to hire a full-time Partner Manager. Once hired, this manager may take an additional three months to build out the program, followed by another three months to recruit and onboard partners. This entire process can easily span 9-12 months, leaving ISVs in a state of uncertainty about whether the program will be effective and if the Partner Manager is the right fit.

Even after a program is developed, ISVs often face barriers with partner engagement. Strict program requirements can overwhelm potential partners, especially if they lack the time or resources to achieve certification. As a result, partners may be discouraged from fully committing to reselling the ISV’s solution.

Incentives also play a crucial role in partner success. However, ISVs sometimes design incentives that are either too challenging to achieve or offer margins that aren’t compelling enough for partners to invest their efforts. Without adequate motivation, partners may deprioritize the ISV’s product in favor of more profitable solutions.

Finally, a significant risk lies in the initial hiring of the Partner Manager. If the wrong person is brought on board, the entire program could falter. All the time and capital invested could be wasted if the new hire doesn’t align with the ISV’s goals or fails to execute the program effectively. This misstep could set back the company’s partner strategy by more than a year, causing delays in scaling and revenue growth.

In summary, while launching a partner enablement program is a key growth strategy for ISVs, it comes with considerable risks and potential setbacks. The complexity of hiring the right person, crafting an appealing program, and effectively enabling partners can create delays and challenges that hinder success. Careful planning, flexibility, and a strategic approach are essential to navigating these hurdles and launching a successful program.