How can software development companies (SDCs) succeed on Microsoft Marketplace?
Estimated Read Time: 5 minutes
Intended Audience: Microsoft Partners, Software Development Companies (SDCs/ISVs)
Microsoft Marketplace can be a powerful growth channel for Software Development Companies (SDCs), formerly ISVs, but success takes more than just publishing a listing.
Across the Microsoft ecosystem, 87% of Partners are listed on at least one Marketplace, yet visibility alone rarely translates into sustained growth. We consistently see Partners focus on getting listed, but don’t spend time on the factors that influence discoverability, seller engagement, and demand generation.
In our experience, the most successful Microsoft SDCs approach Marketplace as part of a broader growth strategy that aligns positioning, Microsoft engagement, and go-to-market execution.
Key Takeaways:
Successful Marketplace growth typically requires:
- Strong Marketplace positioning that clearly communicates value and differentiation.
- Co-Sell alignment that helps Microsoft sellers understand, trust, and advocate for the solution.
- Demand generation programs that drive awareness and engagement around Marketplace offers.
- Ongoing optimization based on performance, visibility, and buyer behaviour.
Why is Microsoft Marketplace growth different?
One of the most common assumptions we encounter is that publishing a Marketplace listing will naturally create demand.
In reality, Marketplace works differently than most traditional SaaS growth channels.
Most SaaS growth strategies assume:
- Direct acquisition channels
- Full control over demand generation
- Linear funnel conversion
The Microsoft ecosystem works differently.
For Microsoft SDCs, demand is influenced by:
- Marketplace positioning
- Co-Sell engagement with Microsoft sellers
- Partner program alignment
- Ecosystem credibility and relationships
- Strategic Microsoft Partner marketing
What are the biggest Marketplace growth challenges for SDCs?
Across Microsoft SDCs, the most common challenges include:
- Listings that lack clear differentiation
- Limited Marketplace visibility beyond initial launch
- Weak Co-Sell alignment with Microsoft sellers
- Disconnected marketing and Marketplace strategies
We consistently see SDCs invest heavily in building their product and listing it, but less in how that listing connects to demand generation and sales.
How do Microsoft SDCs grow on Marketplace?
From our experience working with Microsoft Partners, the SDCs achieving the strongest Marketplace results consistently invest in four key areas.
1. Marketplace positioning
Most SDCs treat Marketplace as a distribution channel. The highest-performing SDCs treat it as a positioning platform.
Successful SDCs:
Effective Marketplace positioning starts with a strong foundation. Leading Partners:
- Define clear problem-solution positioning
- Align messaging to Microsoft priorities
- Structure offers for discoverability and relevance
- Differentiate their offer within the ecosystem
One of the biggest gaps we consistently see is that Partners often understand their product better than they communicate its value. When positioning lacks clarity, visibility rarely translates into engagement.
Simply put, clarity drives discovery. Discovery drives opportunity.
2. Co-Sell alignment and Microsoft engagement
A significant portion of Marketplace growth is influenced by how effectively a Partner engages Microsoft sellers and participates in Co-Sell motions.
Growth depends on:
Effective Co-Sell engagement depends on more than obtaining a designation. It requires:
- Seller awareness
- Clear use cases and customer success
- Co-Sell readiness
- Internal Microsoft advocacy
We’ve worked with many Partners that invested heavily in Marketplace assets but saw limited results because Microsoft sellers lacked awareness of the solution or how it supports customer outcomes.
Being listed creates presence. Being Co-Sell ready creates momentum.
3. Structured demand generation around Marketplace
Marketplace works best when integrated into broader demand generation, rather than as a standalone channel.
Successful SDCs:
- Build campaigns around Marketplace offers
- Drive targeted traffic to listings
- Create content aligned to Marketplace positioning
- Integrate Marketplace into sales motions
When this alignment is in place, results compound.
4. Ongoing Marketplace optimization
Marketplace growth is rarely achieved through a one-time launch.
The Partners we see achieving long-term success continuously refine how their offer is positioned, promoted, and aligned with buyer needs.
Successful Marketplace listings are refined through:
- Listing optimization
- Performance analysis
- Messaging refinement
- Offer enhancements
- Alignment with evolving Microsoft priorities
The most successful SDCs treat Marketplace as an evolving growth channel rather than a completed project.
What results can SDCs expect from a Marketplace growth strategy?
When positioning, Co-Sell alignment, demand generation, and optimization work together, Marketplace becomes a scalable growth channel.
For one client, aligning Marketplace strategy with broader go-to-market execution led to:
- 244% growth in AppSource visibility
- 92% increase in Marketplace engagement
- Measurable increases in Marketplace-influenced pipeline
What results should SDCs expect from Marketplace strategy?
While every organization is different, strong Marketplace strategies typically contribute to:
- Greater Marketplace visibility
- Increased buyer engagement
- Higher-quality opportunities
- Stronger Microsoft seller advocacy
- More consistent pipeline contribution
The outcome is a stronger and more sustainable revenue engine.
What do successful Microsoft SDCs do differently?
Across the SDCs we work with, the highest-performing teams tend to share several common characteristics. They:
- Treat Marketplace as a growth system
- Align positioning with Microsoft priorities early
- Invest in Co-Sell readiness
- Integrate Marketplace into marketing and sales execution
- Continuously optimize performance over time
What differentiates successful Partners is rarely a single initiative. More often, it is a coordinated strategy that connects positioning, ecosystem engagement, and execution.
Many clients describe this shift as moving from fragmented activities to a more disciplined growth model where Marketplace becomes an integrated part of revenue generation.
Who can help accelerate Microsoft Marketplace growth?
While many marketing agencies help with traditional marketing strategies, not all are equipped to support Marketplace-driven growth.
The most effective Partners typically fall into three categories:
1. Specialized Microsoft Partner marketing agencies
Specialized Microsoft Partner agencies typically provide:
- Deep Marketplace and Co-Sell expertise
- Strong alignment to Microsoft ecosystem dynamics
- A strategy-first approach
- Proven experience driving Partner growth
Best suited for SDCs looking for:
- Strategic direction
- Marketplace growth expertise
- Long-term scalability
2. B2B SaaS growth agencies
B2B SaaS agencies often bring:
- Strong demand generation capabilities
- Experience in scaling digital channels
However, general B2B SaaS growth agencies may have limited experience in:
- The Microsoft ecosystem
- Co-Sell programs
- Microsoft Partner growth strategies
- Marketplace-driven revenue motions
3. Marketplace-focused consultants
Marketplace consultants can provide:
- Marketplace-specific expertise
- Listing guidance
- Optimization recommendations
However, Marketplace-focused consultants often lack expertise in:
- Full-funnel marketing strategy
- Demand generation
- Long-term growth planning
- Sales and marketing alignment
How effectively is your Marketplace strategy driving growth?
Getting listed is only the first step. The real opportunity lies in building a Marketplace presence that supports discoverability, Co-Sell engagement, and pipeline generation.
Explore our Marketplace Listing & Co-Sell Package to learn how we help Microsoft SDCs optimize their listings, strengthen Microsoft seller engagement, and accelerate Marketplace growth.
FAQ: Microsoft Marketplace growth
How do Microsoft SDCs (ISVs) grow on Marketplace?
They align Marketplace positioning, Co-Sell readiness, demand generation, and ongoing optimization. Marketplace growth comes from a coordinated strategy rather than simply publishing a listing.
Is being listed on Marketplace enough to generate leads?
What is the role of Co-Sell in Marketplace growth?
Should SDCs invest in Marketplace strategy?
Yes. Marketplace is increasingly central to how Microsoft drives demand, but success depends on strategy, not just presence.
