Ecosystem-led growth (ELG)
In short
Ecosystem-led growth (ELG) is a go-to-market strategy where a company grows by building and participating in a network of partners, integrations, marketplaces, and communities. These relationships create reach, trust, and product value that a company would struggle to build alone.
It is broader than partner-led growth. Partner-led growth centers on formal partner programs, while ecosystem-led growth also includes integrations, developer communities, and shared customers across many connected companies.
Parts of an ecosystem
- Technology partners: Products that integrate with yours and share customers.
- Channel and services partners: Resellers, agencies, and consultants who sell or implement your product.
- Marketplaces: App stores and directories where customers discover integrations.
- Communities: User groups and developer communities around your product.
How to start
1. Map where your customers already are
List the tools and service providers your best customers use. These are your natural partners.
2. Build a few high-value integrations
Start with integrations customers ask for most. Each one is both a product feature and a distribution channel.
3. Create partner motions
Offer co-marketing, referral terms, and shared account lists. Overlap data helps both teams find shared targets and warm introductions.
4. Track partner influence
Measure pipeline sourced by partners and pipeline influenced by them, plus retention of customers who use integrations.
Example
Say a data tool integrates with a popular CRM and lists itself in the CRM marketplace. Users find it there, and a consulting firm that implements the CRM recommends it. Each connection adds a path to customers without more outbound spend.
Common mistakes
- Too many shallow partners: A few active partnerships beat a long list of dormant ones.
- No internal owner: Partnerships need a named owner and goals.
- One-sided deals: Partners stay engaged only when they gain something too.
Ecosystem-led growth FAQs
What is ecosystem-led growth?
Ecosystem-led growth is a go-to-market strategy that grows a company through its network of partners, integrations, marketplaces, and communities. These connections extend reach and add product value beyond what the company could build alone.
What is the difference between ecosystem-led growth and partner-led growth?
Partner-led growth focuses on formal partner programs such as resellers and referral partners. Ecosystem-led growth is wider, also covering integrations, marketplaces, communities, and the network effects between many connected companies.
What are examples of ecosystem-led growth?
Examples include listing an app in a platform marketplace, building integrations that bring in users of another product, working with agencies that implement your software, and running a developer or user community.
How do you measure ecosystem-led growth?
Track pipeline and revenue sourced or influenced by partners, integration adoption, marketplace installs, and retention of customers using integrations. Attribution is imperfect, so combine numbers with partner and customer feedback.
