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For ISVs under pressure to grow market share, scaling your own direct sales team isn’t always the answer. Not only is high-performance, specialized talent expensive, it’s also scarce. After all, you need reps with just the right verticals and technical expertise. And if you’re serving a vertical with a long sales cycle, customer-acquisition costs are steep.
That’s why more high-growth ISVs are either relying on or layering in agent-led referral programs to extend their reach.
How does it work? In their normal sales activities, your payment partner’s agents act as scouts within your vertical, handpicking merchants who would be a good fit for your application and supplying you with warm leads. Unlike VARs, which often require product customization, margin sacrifice, and/or extensive sales cycles, these agents focus on relationship-driven merchant acquisition—opening doors faster without altering your core product or pricing model.
In this article, we’ll examine why partner agent networks are emerging as a powerful growth lever for ISVs, what sets them apart from other models, and how to evaluate the right partner for long-term success. Finally, we’ll show how Payroc’s Agent Accelerator Program offers you a turnkey channel to over 2,000 agents—strategically positioned to drive software adoption in high-opportunity verticals.
Understanding the Agent Model
Agent-led referral programs (also called field-agent enablement and agent-based distribution) arose alongside the rise of channel sales and partner ecosystems in this century. Offering scalability without high overhead, they allow ISVs to grow without the fixed costs of salaries, benefits, and training.
If you don’t have experience with an agent-led referral program yet, here are some key basics to keep in mind:
√ Agents are already embedded in your vertical. They are typically payments professionals, consultants, or industry experts with deep industry and merchant ties.
√ Agents aren’t resellers. Agents don’t modify or resell your product. Instead, they promote it through existing merchant relationships.
√ Agents work on a referral basis. Agent compensation varies by unique program agreement, but often agents are simply paid one-time bonuses for each warm lead.
The agent-referral sales model enables you to maintain full control over onboarding, pricing, and the customer experience. The agent acts only as a trusted warm-lead scout and referrer, leading to faster adoption and stronger retention. And since agents are compensated based on success, their goals align with yours.
Referral Agent Vs. VAR Model
If you’re familiar with VAR sales models but less familiar with agent-led referral programs, a comparison might be helpful. Here’s a closer look.
| Agent-Led Referral Program | Value-Added Reseller | |
|---|---|---|
| Sales Role | Refers leads | Sells and implements the solution |
| Revenue Model | Spiffs or residuals | Buys at a discount, resells at a markup |
| Ownership of Merchant | ISV owns and supports the merchant | Owns merchant relationship and provides first line of service support |
| Technical Involvement | Low to none | Moderate to high |
| Contract Type | Simple referral agreement | Reseller agreement with pricing tiers and service levels |
| Onboarding | ISV handles | VAR handles |
| Channel Control | ISV retains control of branding and pricing | VAR may customize pricing, packaging, and service bundles |
| Payment Partner Role | Owns payment integration and merchant payment support | No payments control or ownership |
Of course, ISVs often have both VARs and agent-led referral programs. Each serves a distinct but complementary role in a multichannel sales strategy.
What to Look for in an Agent Distribution Partner
Of course, choosing the right agent-distribution partner is essential to mutual success. After all, their agents will be representing your brand and directly impacting your growth, reputation, and customer experience. Placing your faith in the wrong partner could not only stall sales—it could even tarnish your solution’s name and viability.
As you’re vetting potential agent-referral partners, take a look at:
- Sales network size and quality: Do they have active, connected agents in your vertical? How many? What is the quality of their current customer relationships?
- Vertical alignment: Are the agents fluent in your target markets and merchant types?
- Sales effectiveness and productivity: Experienced, motivated agents close deals faster and more efficiently.
- Brand reputation: Remember that referral agents represent you. Is their company’s brand strong and trustworthy?
- Enablement and support: Do they offer go-to-market planning, co-marketing, and sales training?
- Strategic partnership: Is this a true growth initiative, or just a passive referral model?
Ask to see numbers, case studies, and program specifics. Inquire about performance benchmarks. And ask for references. It’s appropriate to dig deep and vet thoroughly before entering into a new agent-led referral relationship.
Case in Point: Payroc’s Agent Accelerator Program
A leading global payments company and integrated-payments ISV partner, Payroc offers an established agent-based distribution program aptly named Agent Accelerator. Designed for premier ISVs ready to scale into new verticals, it’s a highly effective way to accelerate your growth via a sales network that’s already well-known and respected in numerous merchant verticals.
Here's how it works:
- You enter into a vertical-exclusive Agent Accelerator agreement with Payroc. This means that to prevent channel conflict and ensure alignment of strategic interests, we commit to serving as Agent Accelerator partner with only one ISV per vertical.
- Our agents receive training about your application and merchant suitability.
- Our agents refer application-appropriate merchants to you.
- You sell your software to the merchant. You own the sale and onboarding.
- The MID is established per your normal process.
- Referring agents receive a modest spiff for successful placements.
- You earn processing rev share from Payroc.
- You manage software support for merchant. Payroc manages processing support.
Merchants get the software they need to succeed. Agents get instant rewards. You grow without adding sales staff. It’s a win-win-win.
Our Agent Accelerator program provides:
- 2,000+ experienced agents with targeted MCC alignment
- Embedded GTM support: messaging alignment, onboarding tools, joint selling
- Brand reputation you can trust
In short, our sales network helps ISVs drive software adoption without adding headcount or complexity. It’s a win-win all around.
To learn more about Payroc’s Agent Accelerator program and how agent-led growth can help you expand market share—efficiently, strategically, and on your terms—reach out today.