Indirect Sales at an AI Company

 

Indirect Sales, Channel & Alliances at Conversica (The Wins)

I had committed to 5 years, and even though I didn’t envision it taking as long as it did, we finally achieved most of what we originally set out to accomplish back in October 2019.

Conversica’s Indirect Sales and Channel/Alliances business matured into a strategic revenue engine by Q2 2025, achieving 78% of quota in Q1 and contributing 11% of the company’s total ARR. These results marked the transformation of a once-sprawling, unfocused partner ecosystem into a deliberate and efficient growth lever.

In 2019, Conversica had “hundreds” of partner agreements across referral, reseller, and OEM models. The strategy emphasized referrals—aimed at building pipeline for the direct sales team—which, in theory, is a sound strategy for enterprise SaaS selling into mid-market and enterprise segments. It can yield high-quality opportunities, compress sales cycles, and boost ASPs when executed correctly. Unfortunately, Conversica’s partner contracts were not built to scale. Many included poorly structured terms (e.g., perpetual referral fees), and most partner-sourced deals skewed heavily toward SMB—resulting in high churn, low deal size, and minimal strategic value.

As part of our GTM evolution, we restructured the entire partner model. We cut underperforming referral relationships and shifted focus to a narrower band of high-impact players—primarily mid-market consultancies and one or two global SIs. These firms brought consultative credibility and enterprise access, aligning tightly with Conversica’s vertical focus and value-led sales approach. Smaller niche partners were repositioned within tightly defined OEM or reseller models, particularly within specialized industries like automotive, where their domain knowledge gave them unique leverage.

We also revisited the original intent of indirect, and begin supporting international expansion for U.S.-landed enterprise customers. The partner ecosystem’s primary role became to help Conversica expand these accounts globally, particularly into the rest-of-the-world (ROW) markets where we lacked direct presence. This clarified mission gave structure to partner engagement, helped align resources, and improved ROI on every partnership.

By 2025, our indirect motion was no longer opportunistic—it was surgical. Aligned vertically, outcome-driven, and globally scalable, the partner strategy had become a durable complement to Direct Sales and a critical part of Conversica’s enterprise GTM playbook. We were happy with two key mid-market partners in each region (North America, LATAM, EMEA, and APAC), complemented by two global SI relationships (e.g., Deloitte and PWC) that provided reach, credibility, and enterprise-grade execution capacity.

Indirect Channel – Strategic Headwinds (The Losses)

Yet, the journey was far from linear. Structural friction and executional complexity challenged the evolution of the indirect channel every step of the way.

  1. Partner Enablement ≠ Partner Activation
    Early channel growth was measured in logos, not revenue. We learned that onboarding enthusiasm didn’t always translate to pipeline creation. Many signed partners lacked the tools, context, and conviction to position Conversica with confidence. It wasn’t until we invested in enablement-as-a-service—including vertical solution kits, certification paths, and shared business plans—that activation rates improved. Still, for every high-performing partner, three would stall.
  2. Channel Conflict Undermined Trust
    Initially, AE-partner collaboration suffered from lack of clarity around lead routing and deal attribution. Internal resistance emerged when indirect channels appeared to compete with direct efforts. We had to overhaul our rules of engagement—ensuring equitable comp, clear role definitions, and a consistent “single story” GTM approach to rebuild trust and drive internal alignment.
  3. Selling AI via Channel Is an Education Problem
    AI isn’t intuitive for most partners. While SaaS is sold through pricing tiers and product demos, AI solutions demand a consultative sale rooted in transformation narratives. Our partners struggled until we simplified how AI use cases were explained, priced, and scoped. Once we “productized” these use cases—by vertical and ROI—the channel became more confident and capable.

These headwinds never disappeared, but we got better at navigating them. And in the process, we built an indirect GTM engine that, by 2025, stood as a durable complement to Direct Sales—scalable, ROI-driven, and ecosystem-aligned.

Advice From One CEO to Another – Building Indirect GTM in AI

  • Pick Fewer, Go Deeper.
    Curate your partner list like your executive team. The right five partners outperform a loose network of 50.
  • Package Outcomes, Not Just Products.
    Channel partners sell confidence. Provide ROI benchmarks, value calculators, and turnkey use cases—don’t assume they’ll build it themselves.
  • Co-Sell Is the New Channel.
    Especially in AI, buyer trust matters. Focus on partners who already own executive relationships—and co-sell with them.
  • Incentives Must Reflect Mutual Value.
    Comp your internal and external teams in ways that drive collaboration, not conflict. Define what success looks like—together.
  • Vertical Solutions Win.
    Horizontal AI is too abstract. Package partner solutions by industry with proof of outcomes. It shortens cycles and boosts win rates.
  • Use Your Own AI Internally—and Make Sure Your Partners Do Too.
    Every indirect pitch gets stronger when your partner sees how you use Conversica in your own funnel. But it gets exponentially more credible when they’re using it themselves. Insist that every partner becomes a user—because a partner who lives the product becomes the best demo you could ever have.

Jim Kaskade

Jim Kaskade is a serial entrepreneur & enterprise software executive of over 38 years. He was the CEO of Conversica, PE-backed leader in AI Automation solutions that help clients grow revenue. He successfully exited PE-backed SaaS company, Janrain, in the digital identity security space. Prior to identity, he led a digital application business of over 7,000 people ($1B). Prior to that he led a big data & analytics business of over 1,000 ($250M). He was the CEO of a Big Data Cloud company ($50M); was an EIR at PARC (the Bell Labs of Silicon Valley) which resulted in a spinout of AML AI company, Quantiply; led two separate private cloud software startups; founded of one of the most advanced digital video SaaS companies delivering online and wireless solutions to over 10,000 enterprises; and was involved with three semiconductor startups (two of which he founded, one of which he sold). He started his career engineering massively parallel processing datacenter applications. Jim holds an Electrical and Computer Science Engineering degree from University of California, Santa Barbara, with an emphasis in semiconductor design and computer science; and an MBA from the University of San Diego with an emphasis in entrepreneurship and finance.

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