scaling your software sales: a guide to the appdirect monetization suite

© AppDirect, Inc. Confidential Material 05/02/2023 1AppDirect Overview

AppDirect Monetization Suite Webinar


AppDirect was founded to help businesses find, buy, and use cloud applications and services

$135 MILLION IN FUNDING RECENT SERIES D LED BY PETER THIEL’S MITHRIL CAPITAL MANAGEMENT

WINNER OF NUMEROUS INDUSTRY AWARDS AND ACCOLADES

COOL VENDOR

FASTEST-GROWING SOFTWARE COMPANIES


Software distribution in the modern “as-a-service” era has become a highly complex and fragmented process

BUSINESS CONSUMERS

DEVELOPERS


AppDirect has introduced the world’s first platform designed for on-demand software distribution

SOFTWARE VENDORSBuild cloud services

CONSUMERSConsume cloud services

CHANNEL PARTNERSSell cloud services

SMB

ENTERPRISE


Since 2009 we have scaled to connect leading brands to power the global cloud economy

30M+BUSINESSES REACHED WORLDWIDE

1M+PAYING USERS

350+EMPLOYEES

10 GLOBAL OFFICES

125+ COUNTRIES

500%Y-O-Y GROWTH

A P P D I R E C T O F F I C E

M A R K E T P L A C E S

A C T I V E U S E R S


The “Channel” has come to mean many different things to many different software vendors

“It’s better to think of distribution as something essential to the design of your product. If you’ve invented something new but you haven’t invented an effective way to sell it, you have a bad business—no matter how good the product.”

Peter ThielZero to OneAppDirect Investor


So how do you distribute digital software in the on-demand world?


Survey: 90% of SaaS vendors offer self-serve commerce or direct sales

1) Direct Sales: Self-Service Commerce and Sales Teams

• Relies solely on word of mouth and inbound marketing

• Growth from 15,000 active users to 500,000 users in 12 months

• 135,000 paid accounts• 60,000 teams using Slack• 800,000 individual integrations to

3rd party apps

• Revenue derived exclusively through direct sales and self-serve commerce

• Grew to 50,000 paying businesses in 7 years

• 145%, 89%, 76% YoY growth rates in 2012, 2013, and 2014

Cloud based Communication and CollaborationFounded February 2014Private

Cloud based Communication and CollaborationFounded February 2007Public: $1.89B Market Cap


Survey: 56% of SaaS vendors offer a Referral or Affiliate Program

2) Referral and Affiliate Programs

• Encouraged users to invite a friend in exchange for 500MB free storage

• Grew from 100,000 registered users to 4 million in just 15 months

• 1,950% YoY growth during that period

• Offers program for affiliate partners to send qualified leads to Shopify in exchange for a 20% share in revenue

• Paid out $1.1M and $2.3M in referral bonuses in 2012 and 2013

• 23% of total revenue generated from Affiliate Program in those years

Cloud Storage and CollaborationFounded 2007Private

eCommerce and Website BuilderFounded February 2004Public: $2.02B Market Cap


Survey: 44% of SaaS vendors operate a Reseller Program

3) Reseller Programs

• Created Reseller Program to grow sales through trusted local experts• Engaged 2,000 accounting firms in New Zealand through

Telemarketers and trained them to sell Xero subscriptions in exchange for ~20% of revenue

• In just three years after building the program, Xero grew from 12,000 to 135,000 customers

• 60% of their $127M in revenue derived from resellers

Cloud based AccountingFounded 2006Public: $1.90 Market Cap


Survey: 68% of SaaS vendors distribute through marketplaces

4) Distribution through App Marketplaces

Cloud based document managementFounded 1975Public: $343B Market Cap

• Top selling application in the AppDirect network• Heavy investment into Channel Development through CSP Program• Microsoft certifies all Resellers and Marketplace providers to sell and

support Office 365• Built an API for reselling Office programmatically, build your own

interface or use their reseller console• Account Representatives own quota associated with Marketplace

Sales – organization is incentivized to build distribution partnerships• Sold over 3M seats through marketplace syndication


Survey: 31% of SaaS vendors operate their own marketplace

5) Operating your own Marketplace

Cloud based project managementFounded 2002Public: $343B Market Cap

• Built marketplace to offer third-party add-ons to products including Jira, Hipchat, and Confluence

• Launched Marketplace in 2012, already onboarded over 1700 third party add-ons and services

• Generated $30M in transaction revenue in 2014 alone• Retains 25% of all sales through marketplace


AppDirect enables developers to monetize their cloud service from startup to IPO and beyond

From global brands to new start ups, AppDirect enables our partners to successfully sell software at any stage.

REVENUE GROWTH STAGES

Self-Service Bill ing through Website





Automated Order Fulfi l lment through Sales Team








Partner Programs through Resellers






Syndication Exchange through Marketplaces








Service Delivery Platform through Your Marketplace

Syndication Exchange through Marketplaces




Without the right tools and technology, experimentation with different Sales Channel is very expensive and carries risk

“Most businesses get zero distribution channels to work: poor sales rather than bad product is the most common cause of failure. If you can get just one distribution channel to work, you have a great business. If you try for several but don’t nail one, you’re finished.”

Peter ThielZero to OneAppDirect Investor


Introducing the AppDirect Monetization Suite: One platform for all distribution channels

MARKETPLACES

YOUR WEBSITE

RESELLERS

YOUR MARKETPLACE “SELL TO”

“SELL TO”

“SELL THROUGH”

“SELL THROUGH”

YOUR PRODUCTS& OTHER LEADINGSAAS PRODUCTS


The AppDirect Monetization Suite

Subscription Billing-as-a-Service• Manage complex subscription

based pricing models and renewal plans through a billing engine

• Give customers the ability to purchase via hosted checkout floor or using AppDirect billing APIs

• Manage advance billing scenarios with ease including refunds, renewals, charge-backs, discounts, etc

Launch a Partner Program for Resellers• Enable a Scalable and Efficient

Partner Delivery Platform for 3rd Parties to Resell your products

• Allow resellers to own full customer lifecycle or just sell product.

• Maximize reseller footprint by providing opportunity to sell 3rd party products stand alone, as add-ons or bundled as part of a complete solution.

Launch your own add-on store• Enable a vibrant ecosystem of 3rd

party products which complement your existing product portfolio.

• Referral Listing: Product Profiles and Track Referrals

• Sell add-ons: Utilize SSO and single bill to give customers great experience and drive add-on sell through.

Distribution through AppDirect Network• Distribute your products and 3rd

party services as both standalone products or as pre packaged bundles through the AppDirect network of distributors

• Reach 30+ million customers through over 15 different marketplaces around the globe


AppDirect powers every aspect of cloud service commerce

MARKETPLACE & MANAGEMENT SERVICE

Facilitates the monetization of products through hosted marketplaces, enabling companies to sell their own core offerings or third-party products.

BILLING & DISTRIBUTION SERVICE

Drives direct sales with self-service commerce through a company’s own website, as well as indirect sales through a network of marketplaces.

RESELLER MANAGEMENT SERVICE

Allows companies to oversee and grow reseller networks with automated tools needed to manage the complete customer lifecycle.

© AppDirect, Inc. Confidential Material 05/02/2023 22

Channel Partners

AppDirect Overview

Join the world’s largest community of Software Vendors and Channels Partners

1000+APPS INTEGRATED AND AVAILABLE FOR SINGLE S IGN-ON AND MANAGEMENT

100+NEW IMPORTABLE APPS EVERY MONTH

5-10NEW DISTRIBUTION INTEGRATIONS EVERY MONTH

270+APP SYNDICATION INTEGRATIONS WITH FULL CONTRACTUAL AGREEMENTS

Software Vendors


Paul ArnautoffDirector of Business [email protected]

Thank You!

mailto:[email protected]

scaling your software sales: a guide to the appdirect monetization suite

Technology