Why should startups sell on AWS marketplace?
First things first, let’s lay out the top benefits that startups stand to gain when selling through the AWS marketplace.Reach 300K+ customers
With cutthroat competition and a desire for early wins, AWS marketplace provides startups a sweet spot to 300K+ active customers. On the one hand, there’s direct access to thousands of customers, with chances of being pioneers of your solution in the AWS marketplace. On the other hand, startups also can build partnerships with AWS resellers who can further act as their agents to accelerate the pace of sales.Access millions of pre-committed dollars
Most customers on AWS marketplace have pre-committed budgets that they wish to spend on marketplace purchases. When startups sell through the AWS marketplace, they can easily access their budgets, which generally don’t require a lot of approvals, leading to bigger deal sizes.2-3X faster deal closure
Most startups, especially the early-stage ones, struggle with credibility in the market. Many software customers are reluctant to try out new Independent Software Vendors. However, when selling through the AWS marketplace, startups get a seal of approval. This way most customers gain greater confidence and are more open to buying the startup’s offering. Invariably, customers are able to skip the lengthy paperwork and due diligence processes, leading to faster deal closure. This enables startups to shorten their sales cycle and close more deals in a short span of time. Not to mention, the sooner the purchase happens, the faster startups receive cash flow, which is always a dire requirement, considering 29% startups fail as they run out of cash.Buyer preference
Overall, there is a buyer preference when it comes to AWS marketplace selling. Most customers find it more convenient to buy through the AWS marketplace, which has a faster turnaround, AWS marketplace managed billing, as well as the convenience of purchasing software with a few clicks. Invariably, the AWS marketplace facilitates quick and early wins for startups by opening up new customer fronts, accelerating the sales cycle and fostering revenue growth. In the longer run, this serves as a potent proof of concept for startups to attract funding and scale sustainably.AWS marketplace for startups: Accelerating growth
As a leading marketplace, the AWS marketplace provides special support and incentives for startups to fast track their revenue growth, customer acquisition and build business sustainability. While there are several programs for startups ISVs along different objectives, the three main areas of support include:Build
This includes providing startups with the technical support and enablement needed to build solutions which are enterprise-ready, well-architecture and compatible with AWS marketplace. Immersive workshops, architecture reviews, etc. help startups accelerate product development. Finally, startups can also work with AWS Partner Solutions Architects to optimize solutions based on customer demand and use cases.Go-To-Market
AWS marketplace helps startups get comprehensive visibility to better reach customers by featuring them in case-studies, joint webinars, blogs, events, etc. Furthermore, startups also access the Marketing Development Funding (MDF), to strengthen their GTM plans and generate leads.Co-sell
Finally, sales enablement by AWS marketplace helps startups receive dedicated support from co-selling specialists to drive engagement with the AWS Sales and field teams. At the same time, startups can get access to customer introductions and when on the right path, they can expedite their journey to AWS ISV Accelerate Program for co-selling. Invariably, AWS marketplace has startups covered by providing them with technical, sales and marketing support. It ensures that startups are set up for success and not just left to find their way once they have their first successful listing. And this is just the beginning. Once startups qualify for the ISV Accelerate program, a plethora of shared broadcasting, selling and incentives, including reduced fees, follows.AWS marketplace success for startups: Key metrics
As a startup, it is important to underscore the ROI to gauge whether or not selling on AWS marketplace is making sense or not. Here are some of the metrics to understand where your startup stands in the AWS marketplace journey.Sales cycle
Startups should measure the impact of selling on AWS marketplace on their sales cycle. Put simply, increased trust, convenience, the ability to access pre-committed funds, etc. enables faster customer conversion. If you are able to close your sales cycle in a few weeks, as opposed to months in other sales channels, then the ROI is quite evident. In fact, shorter sales cycles and faster conversions are effective metrics for investor relations.Customer acquisition rate
Second, you need to gauge the impact on the number of customers you acquire through the AWS marketplace. Ideally, the volume of customers and, therefore, the revenue you acquire through AWS marketplace should gradually increase. AWS marketplace might contribute to >1% of your total revenue in the first year, but it should turn into double digits to reflect on the growth. Here, you may also want to track the number of deals you receive from AWS to gauge the effectiveness of AWS marketplace selling for your startup.Contract/ deal value
Finally, the contract or the value of each deal should also be measured. This refers to tracking the dollar value of each contract or deal you close. While this will have an impact on your revenue, it can also be an effective reflection of deepening credibility among existing and new customers.Key insights for startups for AWS marketplace success
While the benefits and incentives of selling on the AWS marketplace are plenty, following the right approach is integral for efficient resource utilization to unlock success.
