Want To Grow A Service Business? Partnering With Big Players Can Be A Great Way To Build Your Pipeline, As This App Developer Found

It’s hard for web and app developers and other small service businesses to stand out in a marketplace that’s crowded with competition. So how can they generate new business without bombarding potential clients with cold calls and emails?

Jason Martin and Patrick Falvey considered that question about a year ago at AppEvolve, their web development firm in Boise, Idaho. Their company started out as a two-man operation on Upwork and then expanded by gradually hiring 65 remote team members for their US, Philippines, and Costa Rica locations. The founders say they are on track to break $5 million this year.

As they developed their expansion strategy, they decided to do so via partnerships, which provided more sustainable revenue than one-time projects. Many big tech companies—such as Amazon Web Services (AWS), the world’s largest cloud service provider—have partner networks, he notes.

“For smaller businesses that don’t have a big sales and marketing budget—and don’t have the time or the team to sit there and cold-call all day and maybe get one hit out of 1,ooo—it’s really just another way of indirectly getting business through other partnerships,” says Martin.

AppEvolve ultimately formed a partnership with AWS and began providing white-label services for large cloud consulting companies that didn’t have in-house app development capabilities. It also became the exclusive implementation partner for a software-as-a-service telehealth company, building a patient onboarding system. That partner was so happy it has since referred four other clients.

James Sinclair, a coach who is advising AppEvolve on its growth strategy, says partner-led sales efforts are important for growth in today’s business environment, especially when companies prioritize the value of the customer over the immediate influx of revenue. “Everything we knew about sales 12 months ago has now changed,” says Sinclair. “No doubt your inbox and LinkedIn have become inundated, and the low cost of automation has commoditized cold outreach.”

Focusing on relationship-based sales, especially with big companies such as Amazon, can help web an app developers separate themselves from the competition and develop a pipeline of business, says Sinclair. “With everyone saying the same narrative—we’ve got the best price, we’re the best, we’re going to be a great partner, we know this market—you don’t want to be in that conversation,” says Sinclair. “You want to walk in and say, ‘Don’t compare us to those people, not because they’re not good but because we’re a different type of organization. This is how we think. This is how we engage. This is how we partner with you. You’re going to love working with us. You’re going to love our transparency. You’re going to love the confidence we give you.’”

If you’re looking to expand a small service business, partnerships like this may be a good way to attract new business. Here’s how AppEvolve is making them work.

Start at the ground floor—but don’t stop there. When AppEvolve qualified for its partnership with AWS, it entered the partner program at the entry-level “Select Tier.” That brought access to technical support, introductory training resources and a listing in a directory of partners. At the same time, AppEvolve built relationships with other cloud consulting companies in the industry, typically starting with a small project. “What I found is they usually start you on something small and then deepen it,” he says.

Soon these consultancies were sending more projects its way. These endorsements, in turn, led to more projects with these large organizations. “Naturally, it just comes, because you’re building that trust and they’re seeing the quality of your work,” says Martin.

Make it easy for agencies to partner with you. One of the most efficient types of partnerships is to sell your service to agencies who, in turn, sell it to their client base. “Make it super-easy for agencies to work with you,” advises Martin. “They are your sales team.” Package your product in a distinct service offering, so it’s easy for potential clients to envision how they would describe your services to the clients they serve and charge a partner-friendly rate that allows them to make money from the markup on your services, he advises.

Help partners create a seamless experience. Some partners will want to bake your services into their own suite of offerings to potential clients. If you are willing to work under their brand and use an email address with their domain, they may be more inclined to team up. That, in turn, helps you to serve bigger clients who may require more meetings and hand holding than your team can tackle on its own. “The agencies have the infrastructure to handle the client,” says Martin.

Master client communication. AppEvolve gives clients weekly status reports on Fridays to let them know what was accomplished and how projects are going. “We think of ourselves as part of their company,” says Martin. “We’re like an extension of their business—the app development division.”

Stay diversified. Big partners can send a lot of work your way but if that work dries up and you are dependent on it, it can leave you in the lurch. So, while AppEvolve was happy to find its first big partner, it began diversifying its base of large clients further when the founders noticed that partner was contributing 40% of its revenue at the high point. “If they’re making up 100% of your revenue, that’s going to put you in a bad spot,” he says. “You have to be a good partner, but still look for more partners to diversify.” Ultimately, with AI and other factors changing many fields rapidly, diversifying can be a great way to ensure you always have enough work.