"The biggest challenge is distribution. Our data shows SaaS companies rely heavily on direct sales — at nearly twice the rates of every other channel, but can a

"The biggest challenge is distribution. Our data shows SaaS companies rely heavily on direct sales — at nearly twice the rates of every other channel, but can afford only modest sales teams of 1 or 2." Is the primary issue here that the recurring revenue models of SaaS companies are less compatible with existing distribution networks? I've been researching this and found that hardware companies that sell through dealer networks and authorized distributors have an unrealized opportunity to introduce recurring revenue products for their partners, who typically are operating with narrow margins on "one and done" box sales. The challenge is implementing a revenue sharing or commission model that is both attractive and straight forward.