Microsoft touts collaborative joint sales program with partners as driving more sales with higher average prices
Partners selling with Microsoft field sales through the ongoing co-selling program are now generating more than $8 billion in sales, the company said in its earnings report this week.
The Lowdown: Since it launched in the summer of 2017, Microsoft’s co-selling program, in which the company’s field sales teams promote products built and supported by partners, continues to grow. According to Redmond Channel Partners, the program’s total revenue climbed 60 percent in the past year.
The Details: The co-selling program provides incentives to Microsoft salespeople to sell the products and services designed by partners based on Microsoft products. Microsoft incents its salespeople with commissions of up to 10 percent of the total value of the partner product sale.
The Impact: While it’s difficult to quantify the impact of the program for Microsoft, which is generating more than $110 billion in gross revenue annually, the initiative is significant enough for CEO Satya Nadella to mention it on the company’s second-quarter earnings report as a positive way Microsoft is working with partners.
Background: Microsoft started the co-selling program to help independent software vendors and partners bring their own products to market and capture accounts. To qualify for the program, partners must demonstrate technical competency and capabilities, as well as the ability to service specific market segments and geographies.
The Buzz: “We’re really pleased with how Microsoft partners are recognizing the opportunity our co-sell program represents,” said Gavriella Schuster, corporate vice president of the One Commercial Partner Organization at Microsoft, on LinkedIn. “Tapping into our industry-leading partner ecosystem connects partners to more than a billion global customers.”