HubSpot’s partner program is widely admired as one of the best in the SAAS space, and I was recently compiling everything I could on them - sharing it here in case its of use to others:
Interviews with HubSpot’s Partner team:
How I Built a $100M+ Sales Channel By Challenging the Status Quo
https://thinkgrowth.org/how-i-built-a-100m-sales-channel-by-challenging-the-status-quo-e82000e9179d
7 Steps HubSpot Used to Scale Its Channel Sales Program
https://openviewpartners.com/blog/how-to-build-a-channel-sales-program/
HubSpot’s ex-VP of Channel Sales: How to Build The World’s Best Channel Sales Program
https://www.saastr.com/build-the-worlds-best-channel-sales-program/
52 Agencies Share the Top Benefits of HubSpot’s Partner Program
https://blog.partnerstack.com/post/agencies-share-benefits-of-hubspots-partner-program
Building HubSpot’s Partner Program with Pete Caputa
https://partneredpodcast.com/episodes/063-building-hubspots-partner-program-with-pete-caputa-AjUwKmEK/transcript
How HubSpot created an immensely successful indirect channel
https://channext.com/blog/how-hubspot-created-an-immensely-successful-indirect-channel/
How We’ve Started Building HubSpot’s Second Channel Sales Program
https://www.linkedin.com/pulse/how-weve-started-building-hubspots-second-channel-sales-signorelli/
A Partnership Leader Growing HubSpot’s Ecosystem Community
https://www.pandium.com/blogs/a-partnership-leader-growing-hubspots-ecosystem-community
Lessons Learned from HubSpot when Growing a Partner Program
https://podcasts.apple.com/us/podcast/lessons-learned-from-hubspot-when-growing-a-partner/id1153309766?i=1000566117714
HubSpot’s own partner case studies and reports:
IDC report: The HubSpot Ecosystem: More than $26 Billion in New Opportunity for Partners
https://www.hubspot.com/hubfs/IDC%20Report%20HubSpot%20Ecosystem%20Opportunity/The%20HubSpot%20Ecosystem%20More%20Than%20$26%20Billion%20in%20New%20Opportunity%20Ahead.pdf
How can the HubSpot Solutions Partner Program help you increase revenue per client?
https://www.hubspot.com/partners/revenue
ManoByte Revenue Doubles YOY for 4 Years As HubSpot Partner
https://www.hubspot.com/case-studies/manobyte
Winbound Increases Revenue by 100% as a HubSpot Partner
https://www.hubspot.com/case-studies/winbound
HubSpot Releases The State of Partner Ops and Programs Report, Detailing the Business Impact of Partner Ecosystems
https://www.hubspot.com/company-news/the-state-of-partner-ops-and-programs-report-2022
Finnish Duo Partner with HubSpot to Transform Agency and Triple Revenue
https://www.hubspot.com/case-studies/salescommunications
3rd-party analysis and reports:
https://thebaton.substack.com/p/what-made-boxs-2006-pivot-exciting
#1: “If you’re approaching an agency, just to get them to resell your technology, it’s not going to work well” — _Databox’s CEO, Peter Caputa (ex-HubSpot), an elder statesman of reseller strategy, unpacks his understanding through the lens of how martech SaaS startups can scale with agencies._ _(Source:
Reverse Engineered)_
https://www.sramanamitra.com/2021/05/24/cloud-stocks-hubspots-paas-ecosystem-revenues-expected-to-grow-rapidly/
HubSpot has been an avid follower of a PaaS strategy. It has
a dedicated app partner program geared toward developers and companies that want to grow their business by building apps on HubSpot’s open platform. This helps companies grow their business by distributing their apps to HubSpot’s growing customer base. Developers can create apps and then list them on its App Marketplace to access HubSpot’s customer base. 94% of HubSpot’s more than 100,000 customers use the apps on its marketplace to grow business.
HubSpot’s reports reveal that each customer averages over seven third party app installs.
According to a recent white paper published by IDC, the
global HubSpot partner ecosystem revenue, classified as revenue generated by the several app and solutions partners that provide the products and services for HubSpot’s CRM platform software, is projected to grow from $4.8 billion in 2020 to $12.5 billion in 2024. HubSpot has built its platform with extensibility in mind, enabling customers to easily integrate their HubSpot instance with other services and solutions that are tailored to their specific needs. As its ecosystem grows, the options available to customers to help them derive higher value from its platform will grow as well.
Earnings call transcripts:
https://www.fool.com/earnings/call-transcripts/2022/02/11/hubspot-hubs-q4-2021-earnings-call-transcript/
In the last few years, you’ve released a lot of new tools, whether it be content management, operations-focused, service-focused use cases. How has the type of partner that you’re attracting to the ecosystem change with the release of these tools? And what’s the company’s strategy around acquiring new partners, getting them ramped up and making sure they’re going to be successful given that these are a little bit different use cases than the marketing- and sales-focused partners you’ve worked with in the past? Thanks.
Yamini Rangan -- _Chief Executive Officer_
Thanks a lot. I love a good partner question. I love the partner ecosystem. I’ll tell you like -- the partner ecosystem is that -- really come along with us.
And almost 18 months ago, we went to the partners and we said, “We have a clear strategy for the partner ecosystem, which is we want to scale selling and servicing with partners.” Why? Because when partners get involved, our customers get onboarded the right way. They get a lot more value, and therefore, they stay longer with us. It’s good for our customers, and therefore, it’s good for HubSpot. And so what we’ve done -- and if you step back, we had a lot of these marketing agencies that were working on a retainer basis.
And over the last couple of years, we have invested in training, enablement, joint selling so that they not only do that but are able to meet the entire breadth of the product portfolio and the service that needs there. And so now we have partners that do more complex CRM implementations, much more integrations, deal with complex use cases as we go upmarket. And there’s just a nice development and momentum of partners who can provide the full set of services. In 2022, we are investing in that co-selling.
We have a common interface so that we know exactly the conversations we are jointly having with customers. And we’re continuing to invest in terms of partner enablement, but also getting our direct sales teams talking with the partners a lot more. I’m really happy with where the partner ecosystem is kind of going based on a lot of the investments we have made.
One to start there, but was hoping to spend some time on just segmentation of the move upmarket. We’ve heard some encouraging signs from your partners echoing what Yamini is saying just around better alignment, but also larger customers than that historical sweet spot showing up asking for hubs and more formal processes. And I just want to explore what’s happening behind the scenes there? How much of this, from your perspective, is tied to internal efforts, some of the partner efforts that you’ve embarked on? And obviously, having a more comprehensive products, that helps, too. But just would love to just explore that in more context given there’s just a lot of good things happening with the growth drivers here currently.
Yamini Rangan -- _Chief Executive Officer_
Yeah. Thanks a lot for the question, Michael. And you exactly made it right. So we definitely see, from a product perspective, from a go-to-market perspective, as well as partner alignment, and if you step back for the past year, we’ve been talking about our focus in terms of really all of our segments.
And especially the 200 to 2,000 segment, which we call the upmarket segment, we’re really focusing both from a product, as well as the go-to-market perspective. On the product side, you saw a lot of the investments that we did last year. The best that we are making are paying off. On the Sales Hub side, a ton of innovation, all the way from Conversation Intelligence to more advanced forecasting, to CPQ, all of those add tremendous amount of power at that enterprise tier.
You saw the same thing with Marketing Hub. And so almost every hub, we have really invested and the pace of acceleration -- the pace of innovation is actually showing up. On the go-to-market side, one of the things that we say internally at HubSpot is that you can have great strategy, but just alignment across products and go-to-market is even more important than strategy. And over the last 18 months, we have again focused on that alignment.
And when we say alignment with a good market, it’s like when we pour innovation to the enterprise tier, then there is an aligned sales motion where our sales reps with the partner ecosystem are talking to our customers about the value that we are getting, which is very powerful, right? So I think it’s that coordinated effort across products, go-to-market and partners that drive that upmarket momentum, and we’re going to continue to invest on that.
https://blog.publiccomps.com/hubspot-hubs-q4-2020-earnings-teardown/
Partner program - HubSpot’s solutions partners promote their brand and offer the growth platform to their clients. These accounted for ~36% of total customers and 41% of total revenue in 2019.
https://www.fool.com/earnings/call-transcripts/2022/11/02/hubspot-hubs-q3-2022-earnings-call-transcript/
A lot of your agency partners are small businesses themselves. So wondering if they’re seeing any added pressure here. And just overall, what is the performance of the agency partner channel look like relative to your own direct sales efforts and Inbound demand?
Yamini Rangan -- _Chief Executive Officer_
Yeah. Parker, really good question. I think, look, no one is immune to the macro headwinds that we are overall seeing. So I think if VPA partners will also see it.
Now having said that, we have about 6,000 partners within our overall ecosystem and they contribute about 40% of our revenue. Over the last couple of years, we have invested pretty heavily in the partners in terms of enabling the partners in terms of helping them kind of really transform from being a marketing agency to a full-fledged CRM implementer and being able to take our upmarket customers and drive sales distal for of market customers. And I’d say that is working really well. Partner contribution to total rep-driven MRR, both what they’re sourcing as well as what they are co-selling with HubSpot is doing well.
It was pretty high in Q2 and it continued to be pretty high in Q3, and that’s sign that partners are very engaged and they are moving on the journey with us as we really provide a platform for scaling companies. So we’re happy with how our partners are executing and they’re executing in a tough environment. So huge thanks and shout out to them.
https://ir.hubspot.com/news/hubspot-reports-q3-2022-results
Revenue
Total revenue was $444.0 million, up 31% compared to Q3'21.
◦ Subscription revenue was $435.0 million, up 32% compared to Q3'21.
◦ Professional services and other revenue was $8.9 million, down 13% compared to Q3'21.
(PS revenue = 2% of total revenue and declining double-digits vs. subscription revenue growing double-digits)
HubSpot partner program policies
https://www.hubspot.com/partners/solutions-program-policies
https://www.hubspot.com/partners/hubspot-for-strategic-partners
https://www.hubspot.com/partners
https://www.hubspot.com/partners/marketing/benefits
https://www.hubspot.com/partners/marketing/using-hubspot-for-clients
https://www.hubspot.com/hubfs/2022%20Partner%20Tier%20Benefit%20Guide.pdf
If there’s anyone who has anything additional to share on this topic, especially someone who’s or has been a HS insider I’d love to see.