In my last position I was working for a SaaS vendor that has a legacy premise based product being sold through the channel. As our SaaS business picked up the channel was going to being selling that product as well. Stepping away from this business I needed to take a look at how a SaaS based channel product differed from a premise based software or hardware for that matter.
Biggest difference? MARGIN. To sell something that has a one time cost of $1M is very different then selling something that has a lifetime cash value of $1M. How do you incent your partners? How are they compensated? There's not much out there about this. When searching on google the most recent
document I found is from 2006.
Anyone have more information or is doing this right now?
