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Strategy Map›Layer 5 · Go-to-Market Strategy›Distribution Strategy/Partners+ from outside the named canon

Distribution Partnerships

What are Distribution Partnerships?

Another company (a host, merchant, health plan or benefits platform, app store or platform marketplace, distributor, parent company) offers the product to that partner's own customers inside an existing relationship, and the route carried a material share of adoption.

How Distribution Partnerships work

A partner offers the product inside its own customer relationship, so the company reaches buyers without winning each one; the partner gains bargaining power as the route grows.

How companies won with Distribution Partnerships

From the win chains in Strategy Canon case studies: what the winner did, and what its rival did at the same step.

vs. Jobber

ServiceTitan

Trade-association referrals instead of paid sales

What it did
Almost no sales spend to 2014; half of customers via Nexstar and other associations by 2015
Jobber
Self-serve: published low prices, free trial, grants and free education
Read the ServiceTitan case study →
vs. Rdio

Spotify

Social distribution through Facebook, landing on free

What it did
Facebook listening feed at f8 (Sept 2011): Spotify's Facebook app went from 3.4M to 5.3M monthly users in a week
Rdio
Also integrated Facebook in 2011, but friends landed on a paywall
Read the Spotify case study →
vs. Netskope · 2009-18

Zscaler

Win the largest distributed companies through security chiefs and carriers

What it did
Pivot to CSOs; joint selling with carriers and integrators, top five partners 42-47% of revenue
Netskope
Sold SaaS-app control that sat beside the web gateway (2013)
Read the Zscaler case study →
vs. Akamai · 2010–12

Cloudflare

Free, self-serve plan spread through hosts

What it did
Free core service with paid features bought online from launch (Sept 2010)
Akamai
Revenue billed on traffic delivered, sold by a direct sales force and 100+ channel partners such as AT&T and IBM to enterprises like Apple and eBay (2015)
Read the Cloudflare case study →

Also tagged: Affirm · Amwell · CareBridge · Casper · Confluent · Dayforce · Expedia · Global-e · Kabbage · Klaviyo · LiveRamp · Mastercard · Match.com · Microsoft · N-able · New Relic · Omada Health · One Medical · Talkspace · Teladoc · Toast · Visa

The question to ask of a company

Which partner offers it to its own customers, and how much adoption came that way?

Who names it

AuthorWhat they call it / where it appears
Bob Moore +Ecosystem-led growth
Brandenburger & Nalebuff +Complementors
Note. Near miss: An app-store listing with no documented installs. Does not count: An adviser or reseller paid per account (Channel Partners); OEM bundling inside hardware (OEM Licensing).