Your US sales team crushes it with direct sales. You expand to Southeast Asia and realize: you can't hire fast enough, customer expectations differ, and local relationships matter more than your product features.
Direct sales works when you have density, brand recognition, and market knowledge. In new markets, you often have none of these. Partners provide instant market access, local credibility, and on-the-ground presence.
Here's how to build local partner networks that accelerate international expansion.
Why International Markets Need Partners
Challenges direct sales faces:
Geographic dispersion:
Southeast Asia: 11 countries, 10+ languages, different business practices
Direct sales team would need presence in Singapore, Indonesia, Thailand, Vietnam, Philippines, Malaysia—expensive and slow.
Partners provide local coverage immediately.
Lack of local credibility:
Japan: Unknown foreign company vs. local partner with 20-year relationships
Buyers trust local partners, not unknown US vendors.
Language and culture barriers:
Germany: Technical sales in German, understanding procurement norms
Local partners speak the language and understand local buying.
Regulatory and compliance:
China: Requires local entity, government relationships
Partners navigate local regulations and compliance.
High customer acquisition costs:
Building brand awareness in new market = expensive
Partners bring existing customer relationships and distribution.
When to Use Partners vs. Direct
Partner-led model:
Use when:
- New market, no local presence
- Distributed geography (Southeast Asia, Latin America, Middle East)
- Relationship-driven buying culture
- Complex implementation or integration
- Limited resources for direct expansion
Examples: India, Southeast Asia, Middle East, Latin America
Direct model:
Use when:
- Concentrated market (Singapore, Netherlands, UAE)
- Self-serve or product-led motion
- Simple product, minimal implementation
- High brand awareness
- Strategic market worth investment
Examples: UK, Australia, Netherlands (for US companies)
Hybrid model:
Use when:
- Large market with both enterprise and SMB
- Strategic accounts need direct touch
- Partners handle geographic expansion
Structure:
- Direct for top 50 accounts
- Partners for rest of market
Examples: Germany, France, Japan
Types of International Partners
1. Resellers
What they do: Buy your product, resell to customers
Business model:
- Discount from you (20-40%)
- Mark up to customer
- They own customer relationship
Best for:
- Products with simple implementation
- Volume sales
- Geographic coverage
Example: Software resellers in India (Redington, Ingram Micro)
2. Value-Added Resellers (VARs)
What they do: Resell + implementation, customization, integration
Business model:
- Product discount
- Professional services revenue
- Deeper customer engagement
Best for:
- Complex enterprise software
- Implementation-heavy products
- Custom integrations
Example: SAP/Oracle VARs that implement enterprise software
3. System Integrators (SIs)
What they do: Recommend and integrate your product into larger solutions
Business model:
- Referral fees or product discount
- Revenue from integration services
- Your product is part of their solution
Best for:
- Enterprise platforms
- Complex implementations
- Multi-vendor environments
Example: Accenture, Deloitte implementing enterprise software stacks
4. Managed Service Providers (MSPs)
What they do: Operate your product as a service for their customers
Business model:
- Resell with markup
- Ongoing management fees
- Long-term customer relationships
Best for:
- Infrastructure and operations products
- Customers wanting managed solutions
Example: MSPs offering managed cloud services
5. Technology Partners
What they do: Build integrations, co-sell, joint solutions
Business model:
- Mutual customer referrals
- Joint revenue from integrations
- Ecosystem value
Best for:
- Platform products
- Integration-heavy solutions
Example: Slack/Salesforce technology partnerships
Partner Recruitment Strategy
Step 1: Define ideal partner profile
Characteristics:
- Market coverage (which countries/regions?)
- Customer segment (enterprise, mid-market, SMB?)
- Industry focus (if relevant)
- Technical capabilities (implementation, support?)
- Sales capacity (how many sales reps?)
- Existing customer base (how many customers?)
- Financial stability
- Cultural fit
Example ideal partner (B2B SaaS in Southeast Asia):
- Coverage: Singapore, Malaysia, Thailand
- Focus: Mid-market and enterprise
- Customers: 200+ existing customers in target segment
- Sales team: 10+ reps
- Technical team: 5+ implementation consultants
- Track record with similar products
Step 2: Source potential partners
Where to find partners:
Industry channels:
- Trade shows and conferences (local events)
- Industry associations
- Partner directories (Microsoft, AWS partners often good candidates)
Customer referrals: Ask existing customers in region: "Who do you work with for [similar solutions]?"
Competitor analysis: Who partners with competitors? (Check their websites)
Market research: Local analysts and consultants know partner ecosystem
LinkedIn outreach: Search for roles like "Partner Manager" or "Alliance Director" at potential partners
Step 3: Qualify partners
Initial assessment:
Phone/video screening (30 min):
- Current business focus
- Customer base and segments
- Why interested in your product?
- Experience with similar products
- Sales capacity and coverage
Reference checks: Talk to other vendors they partner with
Financial check: Are they stable? Growing?
Step 4: Pilot partnership
Don't commit long-term immediately.
3-6 month pilot:
- Limited territory or segment
- Specific revenue targets
- Evaluate collaboration quality
- Assess customer satisfaction
If pilot succeeds → Full partnership
If pilot fails → Part ways or adjust
Partner Program Structure
Partnership tiers:
Registered Partner (entry level):
- Access to partner portal
- Standard pricing (15-20% discount)
- Co-marketing materials
- Basic training
Requirements:
- Signed partner agreement
- Completed product training
Silver Partner:
- Better pricing (25-30% discount)
- Co-selling with your team
- MDF (market development funds)
- Priority support
Requirements:
- 5+ customer logos
- Certified sales and technical staff
- Quarterly revenue targets
Gold Partner:
- Best pricing (35-40% discount)
- Joint marketing campaigns
- Deal registration protection
- Dedicated partner manager
Requirements:
- 20+ customer logos
- Regional market leader
- Advanced certifications
- Significant revenue contribution
Platinum Partner (strategic):
- Custom deal structure
- Strategic account co-selling
- Product roadmap input
- Executive engagement
Requirements:
- 50+ customer logos
- Multi-country coverage
- Major revenue contributor
Partner Enablement
Effective partners need support:
Sales enablement:
Training:
- Product overview and demo
- Value propositions and positioning
- Competitive differentiation
- Sales process and methodology
Materials:
- Pitch decks
- Battlecards
- Case studies (localized)
- ROI calculator
Certifications: Sales certification program (validates knowledge)
Technical enablement:
Training:
- Product architecture
- Implementation best practices
- Integration patterns
- Troubleshooting
Documentation:
- Technical guides
- API documentation
- Deployment templates
Certifications: Technical/implementation certification
Support:
- Partner portal (access to resources)
- Partner Slack/Teams channel
- Technical support escalation
- Deal support (pre-sales assistance)
Marketing support:
Co-marketing:
- Joint webinars
- Case studies
- Event sponsorship
- Content collaboration
MDF (Market Development Funds): Budget for partners to run local campaigns
Example: $10K per quarter for events, campaigns, content
Lead generation: Leads from your marketing passed to partners in their territory
Partner Management Best Practices
Clear rules of engagement:
Territory: Which countries/regions does partner cover?
Account segmentation: Partner handles SMB/mid-market, you handle enterprise? Or partner handles all?
Deal registration: Partner registers opportunities, gets protected margin and support
Conflict resolution: What happens if direct and partner both pursue same account?
Regular communication:
Quarterly business reviews (QBRs):
- Performance review (revenue, pipeline, customer satisfaction)
- Upcoming opportunities
- Challenges and support needed
- Roadmap preview
Monthly syncs:
- Pipeline review
- Deal support
- Questions and issues
Slack/Teams channel: Real-time communication
Performance metrics:
Track by partner:
- Revenue (vs. target)
- New customer acquisition
- Pipeline value
- Win rate
- Customer satisfaction (NPS/CSAT)
- Deal cycle time
Identify top performers and underperformers.
Partner incentives:
SPIFs (Sales Performance Incentive Funds): Bonus for hitting targets or selling specific products
Example: $1K per new customer in Q3
Trips and rewards: Top partners → President's Club, conferences, trips
Recognition: Partner of the Year awards, public recognition
Common Partner Challenges
Challenge 1: Partner doesn't prioritize your product
Problem: They sell 20 products, yours is bottom priority
Solutions:
- Higher margins for your product
- SPIFs for new customers
- Easier product to sell (better training, materials)
- Co-selling (your team helps close)
- Regular engagement (top of mind)
Challenge 2: Poor customer experience
Problem: Partner delivers bad implementations, hurts brand
Solutions:
- Certification requirements (only certified partners can sell)
- Customer satisfaction tracking
- Probation for poor performers
- Direct customer feedback loops
Challenge 3: Channel conflict
Problem: Direct sales team competes with partner
Solutions:
- Clear territory rules
- Deal registration system
- Different customer segments
- Compensation rules (direct team doesn't get paid on partner territory)
Challenge 4: Partners want exclusivity
Problem: Partner wants exclusive rights to country
Solutions:
- Pilot first, exclusivity after proof of performance
- Exclusivity with revenue commitments
- Non-exclusive in major markets, exclusive in smaller ones
Challenge 5: Communication breakdown
Problem: Partner doesn't respond, relationship deteriorates
Solutions:
- Structured communication cadence
- Executive sponsor on both sides
- Escalation process
- Quarterly in-person meetings if possible
Scaling Partner Networks
Phase 1: First partner (Month 1-6)
Focus: Prove partner model works
Activities:
- Recruit and onboard 1 strategic partner
- Develop enablement materials
- Test co-selling motion
- Measure success
Phase 2: Regional expansion (Month 7-18)
Focus: Build partner network in region
Activities:
- Recruit 3-5 partners per major market
- Tiered partner program
- Partner manager hired
- Standardized enablement
Phase 3: Global partner program (Month 19+)
Focus: Scale globally with consistency
Activities:
- Partners in all key markets
- Global partner leadership
- Partner portal and self-service
- Partner ecosystem events
Real Examples
Salesforce Partner Ecosystem:
Structure:
- 1,800+ consulting partners globally
- Tiered program (Registered → Platinum)
- AppExchange for technology partners
- Extensive certification program
Result: Partners drive 60%+ of Salesforce revenue
AWS Partner Network:
Structure:
- Technology partners (build on AWS)
- Consulting partners (implement AWS)
- Geographic coverage globally
- Competency programs (industry/technical validation)
Result: Massive global reach without direct sales everywhere
HubSpot Solutions Partner Program:
Structure:
- Agency partners (implement HubSpot for customers)
- Tiered (Silver, Gold, Platinum, Diamond)
- Partner revenue share model
- Extensive training and certification
Result: Partners critical to HubSpot's global expansion
Getting Started
Month 1-2: Strategy
- Define partner strategy (geography, segments)
- Create ideal partner profile
- Develop partner program structure
Month 3-4: Recruitment
- Source potential partners
- Screen and qualify
- Select first partner
Month 5-6: Pilot
- Onboard first partner
- Enablement and training
- Co-sell first deals
- Measure and refine
Month 7-12: Expansion
- Recruit additional partners
- Formalize partner program
- Hire partner manager
- Scale enablement
Partners are force multipliers for international expansion. With the right partner strategy, you can enter new markets faster, cheaper, and with better local credibility than direct sales alone.
Build partnerships thoughtfully, enable them well, and manage them actively. Great partner networks become sustainable competitive advantages.