Software Distributor Partner Program

1. Executive Summary

Mission: Build a scalable Distributor Partner Program to expand reach, accelerate revenue, and reduce direct sales costs by recruiting regional distributors and value‑added resellers (VARs) to sell, implement, and support [Software Product(s)].

Opportunity

Targeting SMB and mid-market customers in [industry/geography]. Total addressable market (TAM): $[X]B; initial SOM: $[Y]M. Average annual contract value (ACV): $[A].

Objectives (36 months)

Recruit 25 active distributors / resellers
Reach $3.2M ARR by month 36
Target gross margin 65% after partner payouts
Cash break-even by month 18

Capital

Capital requested: $[Z]. Uses: product localization, partner enablement, marketing, initial channel incentives, working capital.

Quick Facts

Model	B2B channel-first
Primary Market	[regions]
Delivery	SaaS / On-prem options
Launch	Month 1 (Program go-live)

2. Business Overview

Business model: B2B software sold via distributors/resellers. Revenue streams include subscription licenses, implementation & customization fees, maintenance & support, and training/professional services.

Legal & Structure

[LLC/C-Corp], HQ: [city]. Primary markets: [regions].

Unique Value Proposition

Low TCO, fast time-to-value
Industry compliance and integrations
Partner-friendly margin and enablement

3. Product & Offerings

Core product: [Product Name] — key features, modules, deployment options, integrations.

Partner Offerings

Distributor License Packs (volume pricing)
Reseller referral / margin model
Co-sell / white-label options
Professional Services Kit & training
MDF structure for co-funded campaigns

Example Pricing (replace)

Item	Price
List price / user / month	$30
SMB bundle (10–49 users)	$250 / month
Implementation fee (avg)	$2,500
Support SLA premium	$500 / month

4. Partner Program Structure

Tiered partner program with clear requirements, incentives, and enablement.

Tiers & Margins

Authorized: 10%–20% margin; basic enablement
Silver: 20%–30% margin; MDF access, lead sharing
Gold: 30%–45% margin; co-marketing, priority support
Distributor: 40%–55% wholesale discount; can resell to sub-resellers

Requirements & Incentives

Revenue targets & sales/technical certification
Deal registration & lead protection
Onboarding discount, performance rebates, MDF
CAM assignment per 10–15 partners

5. Go-to-Market & Sales Strategy

Channel-first approach with distributor recruitment, co-sell programs, and partner-led field motion.

Sales Motion

Partner identifies lead → registers deal → co-sell with vendor support → partner closes
Deal registration window: 90 days (example)
Lead protection and shared pipeline management

Pricing & Margin Policy (example)

List price $30/user/month. Silver margin 25%. Distributor wholesale ~50% of list.

6. Operations & Support

Partner portal, training, and tiered support to expedite partner success.

Partner Portal Features

Deal registration & status
Training library & certifications
Marketing asset downloads & co-branding
Support ticketing & escalation

Onboarding Timeline (example)

Day 0–7: Legal & payment setup
Day 8–21: Training & certification
Day 22–45: First demo & deal registration
Day 45–90: First closed sale (target)

7. Sample Partner Agreement — Key Clauses

Summary of essential clauses. For a full legal draft, engage counsel to review.

Appointment & territory
License & redistribution rights
Pricing, discounts, payment terms
Deal registration & protection
Confidentiality & IP ownership
Support & escalation
Termination & post-termination obligations
Liability & indemnification

8. Marketing Plan

Channel-focused marketing with MDF, ABM, partner certification promotion, PR, and events.

Channel Plays

MDF co-funded webinars & joint events
Partner certification badges & directory
Joint ABM campaigns with distributors
Partner summits & trade shows

Budget Allocation (Y1 example)

Category	%
Recruitment & enablement	20%
MDF & co-marketing	30%
Content & digital	25%
Events	15%
Partner incentives	10%

9. Risk Assessment & Mitigation

Channel conflict with direct sales — mitigate with territory rules & deal registration.
Low partner activation — mitigate with trainings, onboarding incentives, CAM support.
Pricing pressure — mitigate via certified services, differentiators, and partner enablement.
Cashflow strain from distributor credit terms — mitigate via credit limits & deposits.

10. Financial Model — Key Assumptions (Base Case)

36-month horizon. Currency: USD. Replace bracketed values with your actuals.

Growth & Partners

Start partners (Month 1): 3
Monthly new partners: 2 (Y1), 3 (Y2), 4 (Y3)
Active conversion: 60% within 90 days
Avg partner-managed ARR by end Y1: $30,000

Revenue & Costs

Avg ACV per deal: $6,000
Implementation revenue (Year 1): 40% of ACV
Annual churn: 10%
Gross margin pre-payout: 85%
Average partner commission: 30%
Initial channel setup costs: $80,000
CAM fully-loaded: $110,000 / year

11. Financial Statements — Summary (Base Case)

Year totals (example). Replace with your inputs for a fully linked model.

Income Statement — Year Totals

Line	Year 1	Year 2	Year 3
Subscription Revenue	$520,000	$1,520,000	$3,200,000
Implementation & Services	$210,000	$450,000	$720,000
Total Revenue	$730,000	$1,970,000	$3,920,000
COGS	$60,000	$160,000	$290,000
Partner commissions (30%)	$219,000	$591,000	$1,176,000
Gross Profit	$451,000	$1,219,000	$2,454,000
Operating Expenses	$720,000	$940,000	$1,180,000
EBITDA	-$269,000	$279,000	$1,274,000
Depreciation & Amortization	$8,000	$16,000	$24,000
Net Income (Pre-tax)	-$277,000	$263,000	$1,250,000

Cash Flow — Summary (example)

Line	Year 1	Year 2	Year 3
Opening Cash	$[Initial Funding]	Prior + (-$320,000)	Prior + $210,000
Net Cash Flow	- $320,000	+ $210,000	+ $950,000
Closing Cash	$[Initial - 320,000]	...	...

Balance Sheet Highlights

End of Year	Year 1 (example)	Year 3 (example)
Cash	$[Initial - burn]	$[closing cash]
Accounts Receivable	$120,000	$260,000
PP&E & Intangibles (net)	$60,000	$40,000
Liabilities	$210,000	$340,000
Equity (accumulated)	Opening + retained losses/gains	Accumulated profits

Full monthly 36-month P&L, cash flow, balance sheet and scenario tabs can be exported to Excel/CSV on request.

12. Detailed Month-by-Month Projection — Structure & Formulas

Suggested spreadsheet tabs and key formulas to build a dynamic model.

Tabs: Inputs, Revenue, COGS, Partner Payouts, Opex, CapEx, Working Capital, Cash Flow, Balance Sheet, Scenarios
Key formulas:
Monthly subscription revenue = Σ(active seats × price_per_seat)

Partner payout (month) = Revenue_in_month × partner_commission_rate

Gross Profit = Revenue - COGS - Partner payout

13. Sensitivity & Scenario Analysis

Fast Growth: +25% partners / month — ARR Y3 ~ $4.2M; faster cash breakeven.
Slow Growth: -25% partners / month — ARR Y3 ~ $2.4M; delayed break-even.
High churn (20% annual) — requires larger MDF & higher recruitment to sustain ARR.
Lower partner margin (20% vs 30%) — vendor margin improves but partner retention risk rises.

14. KPIs Dashboard (suggested)

25

Registered Partners

18

Active Partners

$1.2M

Partner-sourced Pipeline

60%

Partner Activation Rate

16. Sales Scripts & Templates (short)

Examples: partner outreach, deal registration confirmation, onboarding welcome. (Full set available on request.)

Intro Email (short)
Hi [Name],
Quick intro — we help [partners] grow recurring revenue selling [Product]. We offer generous margins, MDF, and technical enablement. Can we book 20–30 mins to explore?
Regards,
[Your Name]

17. Exit & Long-Term Strategy

Scale internationally via master distributors
Provide white-label programs for top distributors
Position for acquisition by demonstrating recurring revenue & partner-sourced pipeline

18. Action Plan & Milestones (First 12 months)

Month 0–1: Finalize program docs, portal, allocate MDF
Month 2–4: Recruit initial 10 partners, run onboarding
Month 5–8: Co-sell first 20 deals, refine comp
Month 9–12: Evaluate, scale CAMs, increase MDF, run partner summit

19. Appendix — Deliverables & Exports

Available on request:

Full 36-month monthly P&L, Cash Flow, Balance Sheet (Excel/CSV)
Scenario tabs (conservative/aggressive)
Printable PDF business plan
Full partner agreement & legal templates (draft)

Choose an export: Excel (.xlsx), CSV, or Printable PDF. Respond with your preferred file type and any customized inputs (pricing, partner count, budgets) and the model will be generated.