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Glossary

Agency partner

Also called Agency partnership, Solutions agency, Agency referral partner

Updated

Definition

An agency partner is a services firm, such as a marketing, web, development or consulting agency, that recommends, implements or manages a vendor's software for its clients. In return it earns referral fees, discounts or other partner benefits.

How agency partnerships work

An agency already advises its clients on which tools to use. When it recommends a vendor's software, it either refers the client to the vendor or buys and manages the software on the client's behalf. The agency then sets the product up, connects it to the client's other tools and often runs it month to month.

Common agency types in SaaS partner programs include marketing and growth agencies, web and e-commerce agencies, CRM and RevOps consultancies, and development shops. Larger firms that handle complex implementations are often called system integrators.

How agencies are paid

  • Referral fee or revenue share on the client's subscription, the most common model for SaaS
  • Partner discount or margin when the agency buys the software and bills the client
  • Their own services fees for setup, migration and management, charged directly to the client
  • Program benefits such as directory listings, leads from the vendor and co-marketing

Why agency partners matter

Agencies bring a portfolio of clients, not one deal. One agency that standardizes on your product can introduce it to many clients over a few years. Because the agency implements the software, its clients often get set up faster and stay longer. The trade-off is that agencies need real partner enablement: training, a demo account and quick answers when a client setup goes wrong.

Example

Brightline Agency builds e-commerce sites for mid-sized retailers. It joins Fjord Analytics' partner program, which pays agencies 20% of the client's first-year subscription.

Over six months, Brightline sets up Fjord for four clients, each on a $9,000 annual plan. Brightline earns $1,800 per client from Fjord, $7,200 in total, and bills each client $3,000 for setup and dashboards. Two of the clients later ask Brightline for monthly reporting support, which becomes recurring revenue for the agency.

FAQ

Frequently asked questions

How do agency partners get paid?

Most earn a referral fee or revenue share on the software their clients buy, usually a percentage of the first year or longer. Many also charge their clients directly for setup and ongoing management, which is often worth more to them than the fee.

What is the difference between an agency partner and a referral partner?

A referral partner usually introduces the customer and steps back. An agency partner stays involved, setting up and running the software for the client, so it influences whether the customer succeeds and renews.

What do agencies want from a partner program?

A product their clients will like, a fair fee paid on time, a sandbox or demo account, training their team can finish quickly, and a named contact. Many also value a listing in the vendor's partner directory, which brings them new clients.
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