Structure software services so they can eventually be offloaded to partners
Martin Casado · Fireside Chat: Martin Casado, General Partner at Andreessen Horowitz (FirstMark's Data Driven NYC) · Mar 19, 2019 · at 31:29
Martin Casado, General Partner at Andreessen Horowitz, advises an audience member from Action IQ on structuring consulting services and pricing models in early enterprise contracts.
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“And I think number two kind of gets mostly to your question, which is, you want the services contracts and services business to follow the model of the traditional services model because at some point in time, You do want to offload it. Now, I mean, I think in the early days, you do whatever you can, but, you know, I would actually, you know, over a period of time, run your own P&L, have your own billable hours, have those hours billable per head, to actually, like, fit the P&L model, the actual pricing model, of the partner ecosystem, so when that 15th contract comes in, instead of it coming to, say, Action IQ, it will come to Partner Ecosystem X, for example, and then now you actually have a market to incent the partner ecosystem with.”
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