My consulting company is in partnership negotiations with a software company. The software company has an exchange like Salesforce and AWS. They want to charge us a 25% REVENUE SHARE for any lead they give us. Have you ever heard of revenue share fees for consulting companies that support the underlying software? I understand Salesforce, AWS and other platform players like SAP and Oracle have technology partners and consulting partners (aka professional services firms or system integrators) and they charge the technology category differently from the consulting/service category. What fees does a consulting firm have to pay these type of players to become a consulting partner? Is there a yearly fee to maintain consulting partner status and be listed as a certified partner? Information is greatly appreciated. Thanks
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Usually software companies earn on licenses / maintenance but never heard of revenue share for sharing leads. Usually consulting companies need to pay for ensuring x number of resources to be certified to get partner status, but why the hell would they share revenue. It sounds like this software company is badly managed and doesn’t know how to earn money on their own. I worked on both sides of the fence (Big4 and software) and it’s the first time I hear about it. They are basically putting all the implementation risk on you and charge you extra for it.
Thanks for the comments. We are trying to educate them around this point. It is standard to have a revenue share with technology companies 15% to 25% but I've never seen a revenue share applied to a consulting company as the consulting company is helping the client and preventing attrition.