Affiliate programs in the Russian IT market

Lessons of development of IT-Business with partners in cases

Practice of business development of information technologies by manufacturing companies using partners allows to select a number of examples which give to negative effects: to loss of attention of partners, loss of budgets in tens of millions of rubles, to the slow not predicted growth, stagnation and even rollback back in development. The expert in development of partner relationship Alexander Gnatusin and Tatyana Kornilova, the complex sales expert, prepared for TAdviser six indicative stories how are broken (it is realized or not) the producer criteria of the involvement of partners: financial motivation, marketing support, system of regular training.

Case No. 1

— At us five gold. So? Five is not divided into two? Does not share, huh? Let's try to separate... on five! One turns out …! Receive! — You do not confuse me!

The producer selected the correct approach to adaptation of partners through practical learning. Together with partners the vendor passed transactions on real stages. Partners saw perspective of sale of solutions and advantageous conditions, selected temporary, human, financial resources throughout all cycle of the transaction. As a result the producer makes out the joint transaction on himself, refusing encouragement of the partner for the done work. Such behavior deprived of partners of desire to sell a product, new to itself. Result – stagnation of sales at partners and, growth of leads at vendor which third he is simply not able to digest.

The learned lesson

Motivation of partners - a cornerstone development of partner sales. The producer should be able to consider all interests of partners.

Case No. 2

— You have in a pocket two apples... — You lie: any.

The vendor makes the second attempt of an exit abroad. The previous experience cost seven-digit digit in investments for few years. Stakes on the strategy of advantageous financial conditions for partners, giving 70% of profit and attracting with the cheapest price among competitors. It is ready to help with support of the transaction as in "the house market" successful experience is accumulated. Conditions look tempting, at the same time partners do not hurry to queue for the conclusion of partner agreements, and signatory do not hurry to sell. Uncertainty of a brand at clients and weak marketing is outweighed by perspectives on profit. Partners consider the solution of vendor only as "replacement" - reserve version of the cheap price proposal of the famous producers, in tenders usually sell specific solutions.

The learned lesson

The big partner discount and the price is lower than competitors - not a panacea in development of sales through partners who got used to meet demand. It is easier for partners to meet demand and permanent participation of the producer or distributor in formation of demand, i.e. marketing support is necessary.

Case No. 3

— Swarm pole. Put gold. Salt. Also do not forget to tell "kreks, feks, peks". — And you leave after all far away …

The vendor enters the new markets with the development strategy just like world leaders of the industry. Will independently organize online and offline many thousands events: conferences, a road show, connections, etc., works with social networks, develops standards and opens local offices. As a result Death Valley was longer, than the producer planned. Investments on such volume of marketing activities it was required 2-3 times more planned on each of the local markets. The producer did not consider that the similar scope of marketing support can do only to vendors with a possibility of "unlimited" investments into market development and creation of demand.

The learned lesson

Young vendors even with big (according to them) budgets should learn to motivate partners with - to invest in promotion of the product, especially in foreign markets. The partner investor can lower loading twice, putting 50% of the budget and for 100% in marketing closing the accompanying expenses (taxes, office, personnel, etc.).

Case No. 4

— Three crusts of bread! — Do-good rich Buratino jokes …

The vendor has long-term history both on domestic, and in foreign markets. The brand is untwisted and long ago is known to the Russian users. Products are provided at several hundred partners, among them there is a part of very large. At the same time dynamics of partner sales - is not very comforting. Products for mass market "lie on shelves at partners" and are on sale only if the client himself will designate desire to purchase.

The most superficial analysis infopolya on the Internet showed that information on products of vendor is provided only on its website. The producer is not mentioned in one of top ratings in the last two years, unlike direct competitors. At the same time the vendor continues to expect active sales by partners as "we - the known brand".

The learned lesson

The good product and the signed agreements with the partners having "supertarget base of potential customers" require permanent promotion. A task of the producer - it is permanent to give marketing support on positioning of products and creation of demand at clients and partners.

Case No. 5

— And you are able to consider? — I am able, to five.

The vendor developed industry solution for the corporate sector. Decided to sell through large system integrators. These partners had a necessary set of competences: industry, technical, seylzovy, and, above all, base of target clients. In half a year of work the vendor finds out that at it loading many times increased. The company is small, human resources are limited. Preseylovy activities approached critical values: meetings with clients, processing of briefs, development of technical specifications, pilots, etc. It became clear that sellers of partners preferred to act in a usual role of the ice generator: specify requirement and bring to the customer of the expert of vendor. Specially organized training of partners did not save the situation. Study the new solution is detailed and most of partners were not ready to change the business processes.

The learned lesson

Selecting strong partners, the vendor should plan the resources in advance for service of the sales channel as under strong partners it is necessary to adapt, study their processes and to select additional resources.

Case No. 6

— Who brings up you, tell, please? — When the father Carlo brings up and when nobody.

The vendor involves partners in cooperation in the domestic market. As competitive advantage propagandizes training in a product and sales. However, at emergence at employees of partners of the questions requiring the solution of specific practical objectives on maintaining the transaction, the support service is limited to providing the technical information or the general marketing information from which it is difficult to select an offer essence.

As a result of accurate positioning of a brand and formation of demand the vendor stimulates permanent inflow of new partners, at the same time the control of the channel is conducted by the principle "the strongest survives". As a result a part of potential and perspective partners switched to products of other vendors which had let also not an ideal, but clear and specific training.

The learned lesson

If the producer aims at multiple growth and is going to occupy a niche in the market, then it is necessary to be ready to train partners in the solution of practical tasks in three directions: specifics of a product, specifics of the client, specifics of sales. If a product essentially new, then it is necessary to increase at the same time and in a complex competences of both partners, and clients. If the vendor in direct sales has not enough experience, then it is necessary to study together with partners, to involve mechanisms of mutual training.

Conclusion

For article contrast examples that these stories helped to avoid errors were selected and to serve as evident arguments in protection of three principles of smart development of the partner channel:

1. Partner sales can become the most economic tool for development only at the correct use.

2. The method of development of a partner network giving double growth annually (and the most difficult) – development of partners (key), as business partners.

3. Development of orchestra seats in business is a complex of actions from the producer:

• be ready to dialog with partners,
• create demand together with key partners,
• create valuable offers for partners and clients,
• train partners in formation of requirement at the client and to creation of own business,
• invest in marketing campaigns and involve in co-investment of business partners for expansion of the channel of promotion with the help online and offline of tools,
• perform technical support using business partners.

Whose affiliate programs are recognized the best among the Russian software developers. Rating

Based on the research ABD conducted in April, 2017 from the Russian software developers the best affiliate programs - at the companies Terrasoft Docsvision Kaspersky Labs, Smart-Soft and AmoCRM.

The best affiliate program

In rating 20 companies are provided. Initially for participation in it 60 Russian software makers were selected. The selection criterion for ranging was one – existence of a partner network therefore both large, and small vendors of the different product directions got to rating.

Mystery shopping" – for primary check of interest of the companies in new partners was at first carried out ". IT manufacturing were called by representatives of the ABD agency, said that they represent the interests of the large foreign distributor planning entry into the Russian market and asked to send the affiliate program for assessment of attractiveness of cooperation with this vendor.

At the stage "shopping mystery" about 40 companies were eliminated. The elimination reasons experts of ABD called TAdviser disinterest in development of the Russian market, lack of the affiliate program, closeness of the company and lack of signs of life at the company (several days in a row did not take the call).

To some companies, in particular, 1C and New cloud technologies, representatives of ABD directly suggested to take part afterwards in rating. 1C was not responded to the request during certain time, New cloud technologies preferred not to participate in rating this time.

At the second stage experts of ABD estimated affiliate programs of the remained 20 participants. They were estimated on 82 points distributed on 6 categories:

• Misteri of shopping
• Basic support of sales
• System of motivation of partners
• Contribution to business development of partners
• Fullness and convenience of the partner portal
• Another (questions which did not enter one of the previous categories).

For affirmative answer on each question appropriated 1 point, for negative – 0. At the same time the weight of the question was considered. So for the answer "Yes" it was possible to get both 3 points, and 1, depending on criticality of a question.

The relevance of questions as evaluation criteria was based on examination of specialists of Advanced Business Development: in 500 metrics experts selected 82 questions from the available rating scale of affiliate programs. Answers to these questions, according to experts, allow to estimate degree of "partnerooriyentirovannost" of business.

Breakdown of points by categories of questions

Results "a mystery shopping" for top-20

Assessment of basic support of sales for top-20

Assessment of a system of motivation for top-20

Assessment of a contribution of vendor to business development of partners for top-20

Fullness and convenience of the partner portal for top-20

"Leaders", Strategists, Performera

Depending on the number of the gained points experts of ABD distributed affiliate programs on the groups "Leaders", "Strategists", "Performera".

The Leaders group (gathered 91 and more points) was separated into two types of the companies: those who work on quality of partners (increases their activity) and those who work on quantity. Actually, "quantitative" approach can also be referred to "qualitative", believe in ABD. In it process of natural selection works: vendors increase a partner network that the quantity turned into quality, actively working only with the most perspective partners.

In the Strategists group (the gathered 80-90 points) the companies with "high-quality" approach to a partner network dominate. At the initial stage of development of network (age of the affiliate program up to 3 years – SearchInform, IQR) it is always more justified in terms of perspectives of its further development, consider in ABD.

Also "high-quality" approach is important when the vendor makes technically difficult solution (Profitproyekt, Elma and InfoWatch). These vendors should "leave in the field". Stands Directum alone - the company which works for "quality" of a partner network for a long time and sells only through partners.

Unlike Leaders who in full strength anyway are present at the world scene here only 2 companies (InfoWatch and Elma) entered the market of foreign countries. Other producers prepare for expansion or do not consider this option of development.

In group of Performera (the gathered less than 80 points) the companies of 2 types are provided:

• Long ago in the market are also aimed at expansion of a partner network – when the number of partners turns into quality (IIKO, "The code of security", Stakhanovite),
• Concentrated on exclusively 'high-quality' approach (TrueConf, Solar Security, MFI Soft, BaseGroup Labs, CrocoTime, Motive).

Sales through partners in foreign markets from Performerov develop only IIKO and TrueConf.

Influence of indicators of rating on business development

Experts of ABD say that desire to sell a product of producers is reflected by 2 indicators – "activity of partners" and "dynamics of a gain of partners".

In the research ABD the partners who made within a year at least one purchase at the producer are considered as active. Experts considered activity of partners in a year in a formula:

Activity of partners = the Number of active partners in 2016/Total quantity of partners in 2016 The profit of vendor should grow with increase in number of active partners in a partner network. Therefore, an indirect indicator of growth of business – growth of an activity ratio of partners.

The activity of partners grows when the vendor puts human and financial resources in their development and supports their work within the affiliate program, - explained TAdviser in ABD.

Researchers revealed interesting dependence: activity of partners at vendors with the most attractive affiliate programs (a rating top) and the greatest number of active partners below, than at those who in the middle of rating. ABD explain it with the fact that the more the partner network, the is more difficult to study it therefore the activity of partners decreases.

Logically, should affect activity of partners most of all than 2 characteristics of the affiliate program: the system of motivation and existence of direct investments in partner business. At the same time, as revealed in ABD, having analyzed survey results of vendors, the activity of partners does not grow in proportion with increase in number of points for categories "system of motivation" and "investments into development". The activity of partners is affected by additional factors, in addition to the system of motivation and investments. They are connected with competent control of the channel: control of efficiency of lead generation and closing of transactions with the partner.

Create interesting conditions and invest in development of partners is only 50% of success. – it is accurate to trace the second 50% as as does the channel, - explained TAdviser in ABD.

Experts considered dynamics of a gain of partners in a year in a formula:

Dynamics of partners = the Total quantity of partners in 2016/Total quantity of partners in 2015 x 100%

One of factors affecting dynamics of a gain of partners – attractiveness of the affiliate program of vendor. But in a research experts of ABD revealed also other pattern: existence managed (formalized, clear) sales process – here that attracts partners and positively affects dynamics of a gain. Thanks to existence of the formalized sales process (especially, it belongs to sales of technically difficult products with a long cycle of the transaction) the vendor can broadcast successful experience to the canal, note in ABD.

The general outputs according to rating

1. Most of all business of producers with the partner sales channel is influenced by 2 indicators – "activity of partners" and "dynamics of a gain of partners".

2. "the activity of partners" is affected by the following components of the affiliate program:

• system of motivation,
• amount of investments into business partners (financial and human resources),
• extent of control by vendor of processes of lead generation and management of transactions of partners.

3. Affect "dynamics of a gain" of partners:

• attractiveness of the affiliate program (it is estimated on set of points of rating),
• presence at vendor of the clear formalized sales process of its products.

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