We are asking… how do you actually make money from Microsoft Marketplace?
Really pleased to see the partnership between WeTransact and ResourceiT.
Lee Corbett, UK ISV & SaaS Recruit Lead, Microsoft UK
Will Microsoft Marketplace secure its share of the predicted 163 billion dollars by 2030? Can Microsoft partners genuinely expect to see more than 60 percent of that huge number running through their businesses? Is this a virtual shopping centre for partners to showcase their solutions and wait for customers to turn up and buy? If it is, which customer segments will do that and how do they get there?
A lot of partners are asking us how much they should invest in building a Marketplace first strategy, what it will involve and what the risk versus return looks like.
As the longest serving IT channel expert marketing agency in the UK, with more than eight thousand examples to draw from, here are our views.
Where is Marketplace working today?
It is not perfect data, but the research points in a clear direction. Microsoft Marketplace is working today for big SIs, Distributors and the ISVs who sell through them. This is mainly because enterprise customers and large corporates have invested in MACC agreements.
The “spend your credits” approach.
If you fall into one of these categories, fill your boots. The virtual shopping centre is open, the parking is plentiful (some of it free) and there are a solid range of products available.
However, if you are serving SMB customers or hoping MSPs will sell your solution to SMBs on Marketplace… there’s not much of that happening today.
We have made a lot of calls to check our assumptions and have struggled to find an ISV that is successfully reaching SMB customers and getting them to transact via Marketplace. MSPs rely on distribution to confidently sell and support the right products while securing the small margin that makes the deal worthwhile. And small businesses are simply not going to sign up and buy an IT solution online in that way. Many small businesses do not have in- house IT expertise and prefer the reassurance of knowing they can phone someone when they need help. This means they’ll go to their MSP for advice as opposed to signing up to a solution on Marketplace.
What about tomorrow?
Tomorrow never comes because when it arrives it becomes today. As we explore other Marketplace models that have proven wildly successful like Amazon, eBay and Etsy there is clear evidence there about how buying patterns can shift almost overnight.
Etsy in particular leads with content and community. In a recent survey, 86 percent of consumers said that shopping on Etsy feels like supporting small businesses. A further forty five percent said they visit the site looking for something specific they already have in mind.
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Does this suggest that:
- Microsoft Marketplace might gain traction in the SMB space in the future as IT communities connect and build momentum
- Promoting your solution directly to SMBs, but allowing the actual transaction to take place on Marketplace, could be a workable path in the future, provided your solution is already well-marketed
Making the most of the opportunity
Whether you are already transacting, want to see more traction or know you need to be present but have not yet taken the step, there are countless articles about how to represent yourself correctly.
These usually cover naming and describing your solution, visuals and videos, technical documentation and support. Here are a few additional thoughts that might not only influence how partners and customers respond once they get to your Marketplace listing (meaning they actually go on to buy) but also help you drive them there in the first place.
- What ails? We have been saying this for more than twenty years. Know exactly what you are selling, to whom and why they should buy it from you. What problem are you solving for your buyer? Strip that down to as few words as possible and that should become your Marketplace headline.
- Local area marketing. Etsy shoppers are vocal about this. They like feeling they are supporting small businesses. Supporting small local businesses goes even further. Use your location. Promote your Marketplace solution to people who recognise you and already feel some trust. Big or small, that trust can tip local prospects into buying online.
- Follow the 3-step process. Tell people you exist. Follow up with proof that you can deliver. Then invite them to engage. Spending money marketing to complete strangers who have no reason to believe you, then buying them coffee, lunch or dinner while you pitch to them… does not work. Worse, the “give me your email address and join this cold webinar” approach can do real damage. If you want a Marketplace first strategy to work, don’t treat it as the silver bullet that enables you to remove the need for proper marketing.
If you would like to discuss or debate your Microsoft Marketplace strategy or explore what might be possible for your business, we would love to talk. Our ISV Accelerator might be a good fit too.
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