Partner Pipeline That Doesn’t Convert
At a workflow-software company, 30 resellers contribute 15% of total pipeline but convert at 8%, versus 22% for direct-sourced pipeline. Partners submit about 40 “leads” per quarter; 70% have only a name, title, and company, with no contact details or stated need. Half of partner-submitted leads are unresponsive after two attempts. Partner managers spend most of their time on deal registration and quarterly business reviews, but there is no joint selling. The VP of sales wants to cut the partner program. The partner lead argues that partners are strategic and need more co-marketing funds. The company has one partner manager and a $60k quarterly co-marketing budget. Partners are located in three regions; 18 of the 30 submitted no leads last quarter. The CRM has a partner pipeline stage but no required fields for contact data or joint next steps. Sales accepts partner leads into the same queue as inbound, and direct reps often sit on them for a week before first contact.
1. Diagnose why partner-sourced pipeline underperforms. What data would you check?
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The 8% versus 22% conversion gap is a symptom; the likely causes are lead quality, handoff, and engagement model. Check the definition of a partner lead: if 70% lack contact details or stated need, they are not qualified. Check source attribution: are partner leads worked by the direct team or left with the partner? Check speed to first contact and number of attempts; a week of sitting plus two attempts explains much of the unresponsiveness. Check partner tier: 18 of 30 resellers submitted no leads last quarter, so the program is likely subsidizing inactive partners. Check co-marketing spend allocation against pipeline created. If half of submitted leads are unresponsive after two attempts, the problem may be old or unqualified lists, not partner intent. Also check whether partner managers are measured on deal-registration volume rather than joint meetings or closed revenue. The 15% pipeline share is not the issue; conversion and cost per opportunity are.
2. Propose a partner tiering and engagement model with the one partner manager and $60k budget.
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Tier the 30 partners by past 12-month closed revenue, pipeline conversion, and joint selling capacity. Expect roughly 3–5 Tier A, 8–10 Tier B, and 15+ Tier C. Tier A: joint business plan, biweekly pipeline review, one co-selling motion per quarter, named executive sponsor; allocate 60% of the partner manager’s time and 70% of co-marketing budget. Tier B: quarterly enablement and a lead-quality checklist; 30% of time and 30% of budget. Tier C: self-serve portal, no co-marketing funds, and a clear exit after two quarters of no pipeline. Require every partner lead to include contact, need, and next step before it enters the CRM; otherwise it goes to nurture, not pipeline. Use the budget for joint events with Tier A, not broad spiffs. This protects the strategic-partner argument while stopping investment in partners that submit no activity.
3. What metrics and exit criteria should govern the program?
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Measure partner-sourced qualified meetings, not raw leads; partner pipeline by stage; conversion by partner tier; co-marketing cost per opportunity; and partner-influenced closed revenue. Baseline: 40 leads per quarter, 8% conversion, 15% of pipeline. Set targets: Tier A partners produce at least five qualified meetings per quarter each; overall partner lead-to-opportunity rate rises from 8% to 15% within two quarters; data completeness reaches 90%. Exit criteria: a Tier A partner that misses two consecutive quarters of joint pipeline loses co-marketing funds and moves to Tier B; a Tier C partner with zero qualified meetings in two quarters is removed from active management. Reinvest saved budget in Tier A joint selling. This protects the strategic relationship argument while forcing evidence and preventing the program from surviving on unqualified lead volume.