Application security startup PerimeterX has rolled out its first-ever partner program to drive engagement with the solution provider community in a more systematic manner.
The San Mateo, Calif.-based vendor hopes its inaugural partner program will boost the share of business flowing through the channel from less than 25 percent today to 45 percent by Jan. 30, 2021, according to Chief Revenue Officer David Brown. PerimeterX has already increased the number of channel partners it works with from three to 15 since Brown joined in January even without a formal program.
“I’m going to overinvest in the channel because it can have the biggest impact on our velocity and capacity to cover high-growth expectations,” Brown told CRN. “I’m a huge believer in indirect routes to market as a force multiplier.”
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The PerimeterX Partner Program has two tiers, and Brown expects that 90 percent of the company’s solution providers will be at the Elite level since the lower Authorized tier is intended primarily for one-off transactions. Elite partners can expect margins of 25 percent, Brown said, while Authorized partners should receive margins of 15 percent.
A key element of the new partner program will be market development funds (MDF), which Brown said will be co-founded at a certain percentage of a solution provider’s expected revenue. The money can be used on programs that grow PerimeterX’s notoriety such as cold-calling campaigns that leverage the vendor’s resources and personnel as well as joint branding and customer events, according to Brown.
Elite partners must satisfy more robust revenue and training requirements than their Authorized counterparts, according to PerimeterX. They additionally must have a quarterly business review, a PerimeterX practice leader, sales forecasting and lead follow up and reporting, the company indicated.
In exchange, PerimeterX said Elite partners can participate in promotional rebates and business development planning, and receive better opportunity registration pricing, renewals and platform uplift as compared with registered partners. PerimeterX hopes to add a handful of VARs, consultants and digital marketing companies to its partner roster between now and the end of the year, Brown said.
PerimeterX has hired several leaders with deep channel experience, and these new staff members are getting a list of prospects that the account reps cover in their respective geographies. From there, PerimeterX said it determines who would have the highest propensity of consuming the company’s software, and develops strategies with the VAR reps to go get those customers.
“The greater their web volume, the greater the risk as far as application security is concerned, so those are the targets for us,” Brown said.
Any business doing a lot of online transitions is a good fit for PerimeterX from e-commerce and travel to cosmetics, clothing and gaming, according to Brown. Even financial institutions have expressed more interest in PerimeterX’s application security technology since the closure of bank branches during the COVID-19 pandemic has forced all their customers to start transacting online, Brown said.
PerimeterX’s technology can help financial institutions and others protect against account takeover as well as the risks associated with third-party code, according to Brown.
From a metrics standpoint, Brown said he’s focused on getting the channel community to hit a defined revenue contribution number, which he said will require a lot of heavy lifting in the beginning in order to create sufficient opportunities. PerimeterX will also track what percentage of opportunities are converted into closed deals as well as how long it took to close those deals, according to Brown.
“It’s very relevant for partners to align themselves with the transformation initiatives of their customers,” Brown said. “It’s really an exciting time to be part of this.”