HACKER Q&A
📣 dnnssl2

Selling a white labeled SaaS service to a big tech company


My startup has created a platform integrated white labeled service. Basically, the users of the platform will see the service offering on the platform, but they will think it’s offered by the platform itself. The COO of a big tech company (market cap >1B) is interested in integrating our product, and has referred us their head of product, but being that it’s a big company, the head of product tells us that should continue this conversation in Q2 of 2022.

What can I even do in this situation? I can’t get any value from them in a year or more? We don’t know if we’ll even exist a year from now.

Also, how do I make sure this deal doesn’t fall through after a year of waiting?

  👤 leros Accepted Answer ✓
It'll take them 6-12 months just to go through their legal, privacy, finance, etc processes. That's assuming they've decided to use you.

You should also expect to hire or contract a lawyer as they're going to want a custom contract rather than use your terms of service. There is a good chance they'll have their own contract but you can also have them modify yours. Expect several rounds of contract editing.

Getting stuff into a big company is a process. Source: I work at a big company and it's a pain in the ass to buy anything.

Honestly don't be surprised if you have a year of positive conversations and then it fizzles into nothing. Or don't be surprised if they're super excited but their legal or privacy teams shut down the deal.

Sales with big companies just takes time and can fall apart in many ways.

I also read that you may not exist in a year. Maybe it's worthwhile to consider an acquisition or acquihire by them?

👤 seektable
I'm afraid a long sales cycle (6-12mo) for B2B products that target big companies is a typical case. This remains relevant even if your product doesn't fall into an enterprise software category (in other words, it is low-cost for them).

They can schedule your product evaluation ("integration project") according to their schedule, but very often this doesn't happen at all - so the answer "we'll continue this somewhere in the future" _may_ mean that they don't consider using your product.

You cannot do much in this situation. This lead should be considered 'cold' so it would be enough to ping them from time to time to remind about your product.

👤 codingdave
> We don’t know if we’ll even exist a year from now.

Yep, that is the key. If I were a big company, I would not buy if I did not know you would be around in a year either. Large companies and government entities of any size move slowly. If you are banking on a deal with either one to keep your company afloat, you need to make other sales. Large deals before you are stable are bad for everyone - for them because you are not stable, and for you because one customer now has the leverage to dictate your product roadmap because you cannot live without them.

In other words - expand your sales pipeline.

👤 beardyw
Don't get distracted. I used to sell big software solutions and the mistake is to invest your hopes in maybes. Keep it in mind but work at other stuff.

I spent well over a year on a sale and a week from contract signing I got a call "the press have a story we are being bought out. Do not call or contact us in any way". The sale never happened.

👤 ponyous
Q2 2022 is now. Not next year? I'm assuming you mean Q2 2023.

Make sure to communicate with them so they don't forget about you. Think if there is some small preliminary work you could do, ideally something that showcases you in a really good light, so they will want you faster.