One of the clearest themes from this conversation with Erica Hakonson is that partner strategy has to reflect where a company actually is in its lifecycle. Too many organizations copy a partner model that worked for someone else, without asking whether it fits their own stage, resources, or goals. Erica has lived this from multiple angles - advising partners inside the Microsoft ecosystem, running Maven Collective Marketing, and even founding her own ISV. “It really depends on what stage in your journey as a company you are.” For mature companies introducing a new product or service line, Erica recommends a controlled, pilot-style approach. A small number of well-chosen partners, deeply enabled, can tell you whether the model works before you scale it. Inside Partnering is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber. Startups face a very different reality. “From my perspective as a founder where we came with no partners and bootstrapped funding, it was the name of the game was how many partners can we get?” In that scenario, partners also function as marketing, air cover, and credibility. Volume matters early, with refinement coming later once patterns emerge. Why the Second Deal Matters More Than the First A recurring insight in this episode is that partner success is not defined by the first transaction. First deals can be accidental. Repeatability is what signals a real motion. “Getting that first sale is great but can be a fluke. It’s getting to that second sale that really means, okay, now we’re cooking.” That second deal proves several things at once - that sellers understand what they are selling, that incentives are aligned, and that the partner sees ongoing value. Without that, partner programs stall quietly, even if the pipeline looks healthy on paper. This is where enablement, compensation, and internal support intersect. Technical certification alone is not enough if sellers are neither confident nor motivated. “You could have someone technically trained inside of these partner organizations, but if the sellers don’t know what they’re selling and they’re not incentivized to sell, you’re going to have technically trained individuals and nobody’s selling.” Co-Sell Only Works When You Align to the Platform When the conversation turns to Microsoft co-sell, Erica emphasizes alignment over tactics. Partners that perform well are not guessing at Microsoft priorities - they are mapping directly to them. “It’s really just aligning year after year with what are Microsoft’s priorities, how are we aligning our solution playbook with their solution playbook.” Marketplace has become central to this alignment, especially as Microsoft increasingly expects transactions and quota retirement to happen there. “There’s no doubt in anyone’s mind that Microsoft wants to be a marketplace.” What has changed is not just visibility, but incentives. Field sellers can now retire quota through marketplace transactions, which fundamentally alters behavior. “The fact that they can retire quota in marketplace is a game changer.” For partners, this raises the bar on readiness. Listings, co-sell materials, customer stories, and transactability are no longer optional hygiene - they are how partners get discovered when a seller does not already know them. Making It Easy for the Field to Choose You Microsoft sellers are overloaded. Erica is blunt about what cuts through the noise. “Sellers are going to pay attention to the things that help them retire quota.” The partners who earn repeat introductions are the ones who reduce risk for the field. That means clear proof points, repeat wins, and disciplined communication. “If we have partners that are continually showing us they’re winning in this industry or they’re winning in this workload, we as leaders will share that out to our team.” Win wires, case studies, and consistent updates are not busywork - they are signals of reliability. The goal is simple: make it easy for a seller to say yes without fear of a bad introduction. Incentives Matter - But Only If You Understand Them Microsoft incentives evolve constantly, and Erica acknowledges how difficult they are to track. “They’re novels.” Still, she is clear that partners who invest in understanding incentives outperform those who ignore them. Whether it is AI readiness, marketplace transactability, or workload-specific funding, incentives shape behavior across sellers, partners, and customers. The challenge is operational. Partner Center is complex, and many organizations under-resource it. “It’s worthwhile to invest in someone that can navigate you through that because there’s plenty of incentives, plenty of funding that’s happening.” Measurement That Drives the Right Behavior Finally, Erica returns to measurement - not as a reporting exercise, but as a lever for growth. Marketplace performance, listing decay, and engagement metrics now require ongoing attention as the platform evolves. But one metric stands out above the rest. “What’s the opportunity to land and expand?” Tracking how partners and customers move from one workload to the next creates a clear expansion roadmap. When sales teams understand how that expansion translates into revenue, behavior follows. “If they can translate that product or that service into, ‘Hey, this makes you more money,’ generally the sales team is right on board.” Partner programs succeed when strategy, incentives, enablement, and measurement reinforce each other. This episode offers a grounded look at what that actually requires. 🎙️ Inside Partnering is a podcast for ecosystem builders, alliance leaders, and the people shaping the future of partnerships. Let’s build the future of partnering - together. 📌 If you found this post helpful, would you please consider restacking it and sharing it with your audience? This spreads the word and keeps me interviewing and sharing content that will help you grow your partnership business and career. Thanks for reading Inside Partnering! This post is public so feel free to share it. 🎧 Want more conversations like this? 💌 Subscribe to get new episodes and behind-the-scenes insights: insidepartnering.substack.com Check out all 130+ episodes at InsidePartnering.com 🔗 Follow Chip on LinkedIn for daily partnership content and guest clips Know someone Chip should interview? Send a quick email. This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit insidepartnering.substack.com/subscribe