Referral and Reseller Program Summaries

Referral Program

Program Purpose:

The Sourcegraph Business Development team wants to enlist the partner community to accelerate Sourcegraph’s growth. The primary impetus of referrals should be that Sourcegraph provides meaningful business benefits to the end customers. Referral payments are important part of certain partners’ business models and Sourcegraph will enthusiastically pay them for accelerating our customer acquisition.

Partner Nomination:

Potential referral partners should be referred to the Head of Business Development

Agreement:

There is a standard partner referral agreement. Note that this will eventually be architected to stand as an addendum to a standard partnership agreement.

Program Rules:

  • Partner with signed referral agreements to make “qualified referrals” in writing to Sourcegraph to the Head of Business Development, copying the appropriate Regional Leader of Sales
  • In order to qualify as a “Qualified Referral”, referrals minimally must include:
    • Prospect Company name
    • Key contact name, job title, and contact information
    • Description of the key contacts role
    • Description of the applicability of Sourcegraph within the account
    • Identification of prospect use cases
  • Referrals optionally include:
    • Additional prospect information and context
    • Additional individuals likely involved in the decision making process
    • Budget and timing information
  • All referrals must be approved and accepted by Sourcegraph at its discretion. Referrals must be for new accounts where Sourcegraph does not have any current engagement or opportunity
    • At its sole discretion, Sourcegraph may accept referrals for existing customer accounts where the referral represents a discreet, new opportunity unrelated to the existing business.
  • Sourcegraph will target to “accept” or “reject” qualified referrals within 5 business days after receipt via e-mail
    • Sourcegraph is under no obligation to “accept” referrals
    • Sourcegraph intends to accept referrals if they are a net new customer to Sourcegraph or if they are in a completely distinct group within an existing customer, with which Sourcegraph has no existing knowledge or engagement
    • No payment is due for an accepted referral until such time as an opportunity is closed won against the accepted referral, Sourcegraph has received payment, and the partner has invoiced Sourcegraph
  • Within two business days of Sourcegraph’s acceptance of the referral, Partner will make an introduction and facilitate and schedule an initial meeting. Failure to make an introduction will invalidate the referral. Partner will participate in the initial meeting
  • Partner will stay actively involved in the sales cycle with activities including, but not limited to the following:
    • Participation in key meetings and calls with prospect
    • Engagement with prospect to solicit feedback on proposal
    • Active update of Sourcegraph on developments within prospect’s business
  • If there is no opportunity created, or if the opportunity is “closed-lost” for any reason during the sales cycle, the referral will expire.
  • Sourcegraph will endeavor to keep the partner apprised of significant developments within the sales cycle
  • Referrals are valid for 120 days but will be extended when there are active opportunities in which the partner is actively engaged
  • In order to qualify for referral payments for expansions and renewals, Partner must be actively engaged and in regular communication with Customer and Sourcegraph sales.
  • Referrals will be invalidated in any of the following scenarios:
    • Partner does not stay engaged in opportunity and does not respond to Sourcegraph requests for engagement
    • Prospect disengages or ceases to respond to Sourcegraph
    • Partner also introduces a competing solution or in any way influences the lead to pursue a competing solution
  • Referral Rates:
    • Sourcegraph will pay the partner 10% of the first year new logo closed-won ARR for the length of the referred, accepted, committed transaction (e.g. $10k for a $100k ARR, $100k TCV transaction; $30k for a $100k ARR, $300k TCV transaction)
    • Sourcegraph will pay the partner 10% for any expansion within the referred account for any deal within 6 months of the initial transaction, assuming that the second transaction is related to the first transaction.
    • Sourcegraph will pay a 5% referral fee for any expansion which takes place within the referred account in months 7-12.
    • Sourcegraph will pay 5% of ARR for the first year of the first Renewal only
    • Sourcegraph will pay 12.5% of ARR for the first year of the Second New Deal, provided that the Second New Deal is fully executed within the first twelve months of the Referral date of the First New Deal
    • Sourcegraph will make referral payments to partner after receipt of an invoice from the partner and 30 days after receipt of payment from the end customer
  • Sourcegraph reserves the right to update program rules at its discretion

International Reseller Program Promotion:

Goals:

  1. Quickly get engagement with a handful of international channel partners to “learn what works” and what is on the critical path for investment
  2. Start working with a handful or partners, some of whom should matriculate to long term, key partnerships in “partner led territories”
  3. Drive pipeline quickly and iARR this fiscal year in markets we would not otherwise touch

Guidelines:

  1. List price of $1440 / named user / year ($120 / user / month) for complete platform
  2. Partner margin = 30%
  3. Maximum end user discount = 58.3% ($600 / year OR $50 / month)
  4. Minimum price to Sourcegraph = $420 / year OR $35 / month
  5. Minimum 50 users
  6. The partner will be invoiced by the Sourcegraph US entity in USD. The partner is responsible for the collection, management, and payment of all in region taxes

Internal Guidelines:

  1. Cloud based solution; on prem as an exception
  2. Territory is limited to accounts headquartered in Resellers defined territory
  3. Limit to six markets (countries) within first quarter. Agreement with Gregg on which partners to make offer to. Current potential list includes: Indonesia, South Africa, Korea (?), Israel, Brazil
  4. Pricing is valid for 9 months
    1. Pricing will be re-evaluated after 9 months
    2. Sourcegraph to honor this pricing for any deals registered before the end of that 9 month period for another 90 days (3 months)
  5. Existing customer pricing will increase by no more than 5% per year

There is a standard Partner Reseller agreement available.

Rationale:

  1. We want to get partners excited with a sizable discount
  2. We want partners to feel like they are special for being invited into the business
  3. We want to have a reason to explain to partners that our program is nascent and immature and that their support will be inconsistent
  4. This may enable us to generate ARR from markets we have not previously reached

Referral and Resale Partner Agreement Inventory:

Active partner agreements are inventoried.