Signing a $500,000 distributor contract?

I have to talk about partnerships today.

Say you’re running a SaaS company and you’ve just signed a promising new deal with a distributor. You’re pumped. You can see the potential—more sales, bigger reach. Everything’s lining up.

But then reality hits.

What if they don’t deliver?

What if, months in, they start slacking off?

Because the truth is:

No one wants to be tied to a failing partnership.

And this is where specific metrics can save you.

The Power of Setting Clear Metrics

Imagine your contract says the distributor needs to hit $500,000 in sales per quarter. Plus, they’ve got to maintain a 95% customer satisfaction rate.

But here’s the key part: If they fail to meet those metrics for two consecutive quarters—

You’ve got the right to walk away. No drama. No questions asked.

You’re not stuck in a bad deal.

You’ve got an exit plan built right into the contract.

When you set specific expectations, you take control of two critical things:

1) The distributor actually has to work to sell your product.

They can’t just sit back and enjoy the partnership without pulling their weight.

2) You’re not held hostage if they underperform.

If things aren’t going as planned, you’re free to walk away and find a better partner.

What I’ve Learned From Changing My Content Strategy

I’ve been there.

Just last week, I shifted my content strategy on LinkedIn.

It was a bit of a struggle at first, trying to balance my time between growing my YouTube channel and getting better at editing videos.

But here’s the kicker—the shift worked. I’m seeing results already. And that’s the same lesson I’d give to any SaaS founder:

If something’s not working, adjust the plan. Set clear goals and expectations for yourself (just like you would with a partner), and be ready to pivot when needed.

My Few Ways To Protect Your SaaS Business from Bad Partnerships

Here’s what you need to do before you sign any partnership deal:

1) Set Specific Metrics:

Be crystal clear about what you expect. Revenue targets, customer satisfaction rates, whatever metrics are important for your business. Don’t leave it open to interpretation.

2) Spell Out the Consequences:

What happens if they don’t hit those numbers? Be direct. Maybe they lose exclusivity, or you cut ties entirely. This isn’t just about accountability—it’s about protecting your business.

3) Have an Exit Strategy:

A partnership should be mutually beneficial. If it’s not, you need a clear path to walk away without getting tangled in a long, drawn-out process.

As I was editing my YouTube videos and working on launching my channel, it hit me again:

Everything I’m doing—whether it’s a consultation call or editing videos—comes down to one thing: clarity.

Just like in business, when your goals are clear and the expectations are set upfront, you’re setting yourself up for success. And when things aren’t going well? You pivot. You adjust. You walk away if needed.

The Bottom Line

Partnerships in the SaaS world can make or break your business. But if you have clear expectations and specific metrics in place, you’re not at the mercy of underperforming partners.

Before you dive into any new partnership, ask yourself:

-> Are the metrics clear?

-> Are the consequences spelled out?

-> Do I have an exit strategy if things go sideways?

Protect your business, stay flexible, and always have a way out if things aren’t going the way they should.

If you need my help with reviewing such agreements, then reply with "REVIEW" and I'll send you ways we can work together.