Act now: It’s time to pitch for 2025 partnerships budget

September 12, 2024
Act now: It’s time to pitch for 2025 partnerships budget

Budget season is here, and for partnerships teams in B2B SaaS, planning ahead is more important than ever. As companies increasingly shift toward ecosystem models, partnerships professionals need to secure the budget that will fuel long-term growth and scalability in 2025. Waiting until the last minute can mean missing out on key investments that could drive transformational change.

But what exactly does pitching for an ecosystem model look like, and why is it crucial for your 2025 partnerships strategy? In this post, we’ll explore why early planning is critical, how an ecosystem model can transform your business, and how to effectively secure the budget to fuel your vision.

1. The importance of early budget planning

When you start the budgeting process early, you're not scrambling for resources—you’re proactively positioning your team to drive major growth through 2025.

By planning ahead, you also ensure your budget requests are grounded in data and aligned with company priorities. Rushed requests often lack the robust justification needed to secure buy-in, and you could end up missing out on essential investments for your team.

Remember, anything from expanding your partner ecosystem, building new integrations,to increased investment in co-marketing initiatives next year require budget planning and pitching now.

Case in point: Take the example of Salesforce, which embraced an ecosystem model early on. By planning their partnerships investments years in advance, they were able to launch the Salesforce AppExchange, creating a massive marketplace of partner integrations that ultimately became one of their largest drivers of growth. Early budget allocation was key to executing this vision.

2. The benefits of pitching an ecosystem business model

If you’re looking for an edge to your partnerships budget pitch this year, consider a big-picture move to an ecosystem business model.

The ecosystem model is quickly becoming the gold standard for partnerships teams and companies looking to scale. Pitching a move towards ecosystem now can be a huge win for your personal career and a growth lever for your company. 

In an ecosystem, partners become an extension of your company, driving growth in key areas – sales, marketing, product innovation, and customer support.

Here’s why an ecosystem model matters:

  • Scalability without heavy investment: An ecosystem approach allows your partners to scale your sales, operations, and innovation without significantly increasing internal headcount or costs. This scalability helps you grow faster and more efficiently.
  • Increased revenue streams: Partner ecosystems open new revenue channels, such as co-selling, partner-sourced deals, and integrated solutions. For example, companies like HubSpot and Atlassian have successfully leveraged ecosystem models to build robust app marketplaces that significantly contribute to their bottom line.
  • Innovation and market expansion: Partners often create new use cases for your product, integrate new technologies, and help you penetrate new markets faster. By embracing an ecosystem, you’re able to innovate without needing massive R&D budgets.

Example: HubSpot's growth is fueled by its partnerships, which accounted for an impressive 45% of total revenue in 2022, with partners referring 33% of their customer base. These partnerships not only drive a significant portion of revenue but also attract customers who tend to spend more than the average.

3. How partnerships can win budget in a tight economy

The SaaS industry is facing economic challenges that are putting a squeeze on budgets across the board. Investors are demanding more efficiency, and leadership is focused on doing more with less. This has led many SaaS companies to tighten their purse strings, with departments facing scrutiny over ROI and justifying every dollar spent.

So how can partnerships teams secure budget in this environment?

  • Efficiency through partners: One of the biggest advantages of partnerships is their ability to drive growth without a significant increase in internal costs. Partners act as an extension of your sales, marketing, and product teams, allowing you to scale without the need for large investments in headcount.
  • Low-risk, high-return investment: Compared to direct sales or paid marketing channels, partnerships often provide a lower-cost, higher-ROI solution. For instance, co-marketing initiatives and partner-sourced deals typically come at a fraction of the cost of traditional paid marketing and sales efforts.
  • Proving value quickly: In tough economic times, executives are focused on short-term wins as much as long-term strategy. Partnerships can deliver value quickly by boosting revenue through faster sales cycles, increasing deal sizes, and reducing customer churn through partner integrations that enhance your product’s value.

Take a look at this data from the 2024 B2B Sales Benchmarks report published by Pavilion and Ebsta. Partner referrals accounted for 10% of pipeline but 31% of revenue.

4. Securing budget for ecosystem initiatives

To secure the budget you need for 2025, you must build a strong case that ties ecosystem investments to key business goals. Executives are laser-focused on specific metrics, and the more you can align your budget requests with these metrics, the more likely you are to secure their approval.

Metrics that matter include:

  • ARR (Annual Recurring Revenue): Show how an expanded ecosystem can drive more recurring revenue by leveraging partner-sourced deals. For instance, you can demonstrate how new integrations have increased renewals and LTVs in the past.
  • Win rates and deal sizes: Present data showing how co-selling with partners improves win rates and deal sizes, directly impacting sales performance.
  • Customer retention and NRR (Net Revenue Retention): Explain how partnerships and integrations help reduce churn and improve retention, leading to stronger NRR. For example, you could show how a new integration with a popular tool increases product stickiness and customer satisfaction.

Incremental vs. transformational change: When requesting a budget, it's important to differentiate between incremental and transformational change. An incremental ask might be funding for a new software tool or headcount, while a transformational ask is a full shift toward an ecosystem business model.

If you're advocating for the latter, be prepared to show the long-term value and scalability that an ecosystem approach can bring.

5. Preparing your 2025 partnerships program

As you finalize your 2025 budget plan, consider where ecosystem investments will have the biggest impact. This could include:

  • Expanding your partner marketplace: A well-built marketplace can drive significant growth by allowing partners to create integrations that fill gaps in your product.
  • Improving co-marketing efforts: Partnering with key players in your ecosystem for co-marketing initiatives can dramatically increase brand awareness and drive new leads.
  • Investing in partner enablement tools: Tools that help partners easily integrate with your platform or sell your product can streamline onboarding and drive partner engagement.

Remember, the most successful partnerships teams don’t just ask for incremental changes—they plan for transformational shifts that will drive their business forward in 2025.

Download the executive pitch guide for partnerships

Ready to secure your 2025 partnerships budget? Download our CXO Pitch Guide to learn how to build a compelling case for your ecosystem initiatives and get executive buy-in for your budget request.

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