Overview of channel-led sales through Microsoft Marketplace

Microsoft Marketplace has multiple sales models to support your channel-led sales motions. This article helps software companies and channel partners learn about the different deal constructs available so you can choose the approach that best aligns with your business needs and partner relationships.

Key definitions:

  • Software company: The developer of the software product being sold.

  • Channel partner: the customer-facing company delivering cloud implementation services (e.g., SI, MSP).

The following table compares the different Microsoft Marketplace channel-led sales motions available to help you choose the right option for your situation.

Sales motion Private offers Multiparty private offers CSP private offers
Geographies enabled Global Customers in CA, UK, US Global
Resale enabled offer eligible
Microsoft customer contract PAYGO, EA, MCA PAYGO, EA, MCA CSP
Azure benefit eligible
Sales earn Azure sponsorship
Eligible seller All Microsoft partners All Microsoft partners CSP partners

Note

For all sales motions, the partner creating the private offer pays the 3% Marketplace agency fee.

Resale enabled offers

With resale enabled offers, software companies can authorize their channel partners to sell their existing Marketplace offers on their behalf. Software companies start by creating resale enabled offer authorizations in Partner Center. Each authorization is tied to a specific offer, one channel partner, and one or more customer markets that define where the partner can sell. After authorization, channel partners can independently create and sell private offers without further involvement from the software company.

Resale enabled offers are sold via private offers and multiparty private offers. After purchase, Microsoft collects payment from the customer and pays the channel partner directly. The channel partner then pays the software company outside of Marketplace in accordance with the terms established by external agreements between the parties.

For customers that have an Azure consumption commitment, 100% of the purchase applies toward that commitment when the solution is co-sell eligible. Learn more about co-sell requirements

For more information, see Resale enabled offers overview.

Multiparty private offers

Multiparty private offers enable software companies and their channel partners to jointly sell to an individual customer. With multiparty private offers, the software company initiates each deal by creating a private offer and extending it to the channel partner in Partner Center. The channel partner then adds their margin and other details before sending the private offer to the customer. Multiparty private offers require the software company to create each private offer.

After purchase, Microsoft collects payment from the customer and pays both the software company and the channel partner. For customers with an Azure consumption commitment, 100% of the purchase applies toward that commitment when the solution is co-sell eligible.

For more information, see Multiparty private offers overview.

CSP private offers

CSP private offers are designed for customers who purchase their Microsoft cloud solutions through partners in the Cloud Solution Provider (CSP) program. CSP private offers allow software companies to provide margins that motivate CSP partners to sell their solutions. The software company specifies the private offer margin and duration to create a wholesale price for their CSP partners.

With CSP private offers, the CSP partner handles customer pricing and billing outside of Microsoft Marketplace. When the CSP partner makes a sale, Microsoft bills them and pays the software company based on the wholesale price. CSP private offers do not count towards customers' Azure consumption commitments.

For more information, see CSP private offers.