This Beautiful Banner is included in Essentials!
background image

Contact Me to Transactable Offers: 5 Ways to Unlock Business Value in Azure Marketplace

transactable offers
Selling in the Azure marketplace is not only about launching your SaaS offer or going live with it, but ultimately making sure that you are able to convert the offer into real sales and get the projected revenue. For a long time, ISVs have been launching Contact Me offers on Azure marketplace which is a quick and easy way to help your customers discover your listing and encourages them to request contact from your team. While it is an attractive route for selling, it is not the most direct one, leading to a leaky pipeline where customers drop out along the way. Thus, Azure allows ISVs to directly sell their offers through its commercial marketplace with Transactable Offers. These offers are immediately transactable and can help customers access your product quickly. Through this article, we will discover some of the ways in which converting your contact me offers to transactable offers can unlock business value for you in the Azure marketplace.  

Business benefits of Transactable Offers in Azure marketplace 

Undoubtedly, transactable offers in Azure marketplace bring about a better customer experience as well as reduce operational overheads for ISVs. However, that’s not all. At a more granular level, transactable offers can directly impact the bottom line for ISVs, by helping unlock business value that simply launching contact me offers cannot guarantee. Here are the top business benefits of transactable offers:  

Sales enablement marketplace rewards 

Based on whether your offer type is listing, free trial, consulting or transact, you are eligible for different marketplace rewards. No extra points for guessing that the most comprehensive set of rewards comes with transactable offers, in the form of sales enablement support. When you publish a transactable offer, you unlock a long-term engagement and access to Microsoft support for business. With a transactable offer, you receive marketing, sales and technical benefits for business growth as follows: 

Marketing benefits 

Azure marketplace provides marketing benefits for transactable offers to help listing optimization and awareness building with strategic marketing interventions, including: 
  • Market research and marketing materials
  • Self-serve digital marketing on demand
  • Partnering and global expansion readiness assessments
  • Commercial marketplace listing optimization
  • Commercial marketplace marketing toolkit
  • Press release support
  • Marketplace Rewards testimonial
  • Commercial marketplace featured category placement
  • Commercial marketplace blog feature
  • In-depth customer review
  • Azure sponsorship for Test Drive/trial sandbox
  • Partner or customer success story
  • Social promotion spotlight
  • Commercial marketplace featured home page placement
  • Individual guest blog post
  • Microsoft executive endorsement  

Sales benefits 

In addition to helping you market your solution in a more pronounced manner, Azure also offers guidance and resources for sales discussions to  effectively communicate the USP for transactable offers, including: 
  • Co-sell solution finder listing guidance 
  • Grow and scale by selling through Microsoft partners in the commercial marketplace
  • Azure sponsorship for deployment/proof of concept 
  • Microsoft seller webinar
  • Solution spotlight to Microsoft sales team  

Technical benefits 

Finally, transactable offers also get the technical benefits to help you effectively utilize Microsoft technology to power your marketplace offers, including:  
  • Onboarding documentation 
  • Commercial marketplace forums 
  • Commercial marketplace consultation: architecture guidance 
  • Microsoft 365 E5 developer subscription
  • Azure sponsorship for commercial marketplace publishing development/testing
  • Azure Active Directory integration for transact offers 
For a more comprehensive understanding of the marketplace benefits that come with Transactable Offers, check this out

Utilize MACC 

One of the biggest benefits of publishing transactable offers is the opportunity to access Microsoft Azure Consumption Commitment (MACC). Azure marketplace today has 4 Mn+ active customers and many of them have pre-existing cloud spend agreements, where they have made a contractual commitment for a minimum Azure spend. As the exchange for money in transactable offers takes place through Microsoft, they are eligible for transaction with MACC.  From a business lens, MACC brings along multiple benefits for ISVs with transactable offers. First, it considerably shortens the sales cycle. Since the budgets are already committed, customers don’t need additional approvals for their reallocation, which leads to deals which are faster. Secondly, at times, even the size of deals can be bigger than expected if the committed spend for customers that is unutilized is higher. Thus, with transactable offers, ISVs can capture committed budgets for many customers, which otherwise they may not have been able to land, through other channels. This illustrates a clear revenue addition and business value for transactable offers.  

Automatic invoicing 

When you publish a transactable offer or convert your contact me offer to transactable, Microsoft facilitates or manages the exchange of money between the ISV and the customers with automatic invoicing. As a publisher, once you share the terms of agreement and payment with Microsoft, the commercial marketplace takes care of collecting the payment from the customers and transferring it to your account. It also takes care of the tax considerations in the transaction.  From a business lens, you have a clear predictable revenue pipeline based on your contract which will not be delayed or will not falter. At the same time, you don’t have to invest in additional resources to follow up on payments and specifically manage taxes for customers from across the globe.  

Low transaction cost 

One of the major barriers preventing ISVs from exploring transactable offers for a long time was the transaction cost associated with it. Earlier, ISVs had to bear a 20% transaction cost for every offer that they sold through Azure marketplace. However, recently, this transaction cost was brought down to a mere 3%. This low transaction cost is definitely a big business benefit.  If you look closely, businesses have to pay a small transaction cost to even a payment gateway that they might use for sales outside Azure marketplace, at times which is higher than 3%. Therefore, a low transaction cost makes transactable offers a business boon for many ISVs.  

Financial incentives 

In addition to rewards in the form of guidance and support, transactable offers also receive Marketplace incentives. The Marketplace Transact and Grow Incentive Campaign provides a range of financial incentives of up to USD 30,000 per Marketplace offer when publishing a transactable offer. At the same time, they can earn up to $20,000 per Marketplace offer on reaching billed sales and usage milestones.  Some of the key incentives can be divided into publish and grow incentive, including: 
  • USD $10,000 for publishing a public transactable offer in Azure Marketplace  
  • USD $20,000 for publishing a public transactable offer for the first time with Azure IP co-sell incentive status  
  • USD $10,000 for publishing a transactable Teams app becomes  
  • USD $10,000 when a transactable offer achieves a cumulative billed sales total of USD $25,000
  • USD $10,000 when a Teams app reaches 5000 in monthly active user count for the first time in 12 months  
For more understanding on the financial incentives, click here 

Private offers 

Transactable offers also allow ISVs to create customized private offers for customers based on negotiated terms which are different from off the shelf public offers. When you publish a transactable offer, you can customize the terms and offer discounted pricing, special contracts, etc.  With private offers, you can negotiate the requirements for big and high value customers and even bundle discounts/ offers to provide a host of services. This way, transactable offers can help you address the specific customer requirements in terms of pricing and quantity without disturbing the public version of your offer. This ability to customize offers can bring along greater business opportunities and values as you are able to serve customers the way they want.  

Unlock Transactable offers business value with SaaSify 

As a SaaS enablement platform, SaaSify provides you with a single integrated dashboard to publish, optimize and manage transactable offers in the Azure marketplace. SaaSify can help you with: 
  • Faster time to market with its zero engineering platform to create transactable offers within a week 
  • Pre-built integrations and APIs required for technical configuration in the Azure marketplace 
  • Different SKUs to cater to the different requirements you may have depending on your pricing model 
  • Onboarding and listing support to help your teams understand the transact model 
  • Extensive reporting to keep a track of all transactions of your customers to understand the purchase behavior on payouts, transactions, etc.
  • Unlimited listing with self-service capabilities to list as many offers as you like 
Thus, this is the right time for publishing transactable offers in the Azure marketplace because the transaction cost is low, there are several marketplace rewards and incentives and you can easily capture customer MACC. Grab the first-mover advantage and go live with your transactable offers to realize exponential business value with Microsoft capabilities and support.  Disclaimer: Microsoft Azure marketplace program and rewards evolve from time to time and these benefits/ incentives may/ may not be available for all ISVs at all times.

    Recommend For You