Salesforce AppExchange Success Blueprint E-Book

Jakub Stefaniak

• Herausgeber: Packt Publishing
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 547

Veröffentlichungsjahr: 2023

Beschreibung

Are you ready to turn your million-dollar ideas into reality? Salesforce AppExchange Success Blueprint is your ultimate guide to becoming a successful ISV partner and publishing your Salesforce applications on the AppExchange. This book covers every facet of the application development process, from the initial partnership establishment to smoothly preparing for security review and managing app releases. Packed with real-world examples, case studies, and detailed guides, it’ll help you master AppExchange development.
Throughout this experience, you’ll discover how to create customer-centric applications that seamlessly integrate with external systems, ensuring a frictionless user experience. You’ll also navigate the intricate process of preparing for security reviews and managing app releases. In addition, you’ll delve into the critical realm of business strategy, addressing essential elements such as maximizing profitability, achieving operational excellence, leveraging analytics to make data-driven decisions, and effectively handling technical debt to maintain your app's robustness and scalability.
By the end of this journey, you’ll possess a deep understanding of AppExchange development from both technical and business standpoints, making you well-prepared to excel in the Salesforce ecosystem. Let's embark on this exciting path together!

Leseprobe

Salesforce AppExchange Success Blueprint

Transform your ideas into profitable and scalable Salesforce applications

Jakub Stefaniak

BIRMINGHAM—MUMBAI

Salesforce AppExchange Success Blueprint

Copyright © 2023 Packt Publishing

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First published: November 2023

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Published by Packt Publishing Ltd.

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ISBN 978-1-83508-954-5

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Dla mojej ukochanej żony, Aleksandry, która jest moim nieustającym źródłem inspiracji i siły.

Dla moich rodziców, którzy zawsze we mnie wierzyli i nauczyli mnie przekształcania marzeń w rzeczywistość.

Bez Was ta książka by nie powstała.

– Jakub

Contributors

About the author

“Jakub is the best Salesforce Expert I know,” said Jakub’s mom.

Jakub Stefaniak is a Salesforce Certified Technical Architect (CTA) and the VP of technology strategy and innovation at Aquiva Labs (an expert PDO company), where he assists ISVs in developing products and succeeding in their AppExchange partnerships. Jakub earned his master’s in computer science and continued his education firstly at Stanford’s Graduate School of Business and then in the Massachusetts Institute of Technology (MIT) Chief Technology Officer program. After delivering presentations about AppExchange across four continents (including at Dreamforce), Jakub got tired of repeating himself, so he penned this book. He’s also the author of a self-published AppExchange app.

To my colleagues at Aquiva Labs – your support and insights have been instrumental in developing this book. Whether through our collaboration on various AppExchange projects or invaluable discussions, each of you has enriched the content of these pages. Without the privilege of being a part of a top Product Development Outsourcers like ours, I might never have acquired the necessary experience to undertake this endeavor. Thank you all sincerely.

About the reviewers

Marco Kuster has a diverse professional background, having worked as an architect, web designer, and technical trainer. However, he discovered his true passion when he became a part of the Salesforce ISV team. Working with ISVs has shown him that each one is distinct, and his role is to advise them in developing exceptional software by harnessing the power of Salesforce technologies.

Lawrence Newcombe, a Salesforce CTA and co-founder of Cloud Sundial, is the brains behind FormulaShare, an app revolutionizing record sharing. This tool provides flexible, click-and-configure rules for intricate sharing scenarios, eliminating the need for customization. With free and enterprise editions, FormulaShare is embraced by 100+ production orgs, attesting to its effectiveness.

Aside from app development, Lawrence serves as Lead Technical Architect at Giveclarity.org, where he establishes system architecture and governance for international NGOs. His expertise contributes significantly to meaningful projects, showcasing his dedication to impactful work.

He is also a content creator, sharing insights on identity, OAuth, and cloud sharing on cloudsundial.com. Beyond the digital realm, he finds joy in rock climbing, exploring Bristol’s crags and cliffs on sunny evenings.

Krishna Tatta is a Salesforce Certified Technical Architect (CTA) with over 15 years of experience in product engineering, enterprise architecture, SaaS product delivery, and people and organizational leadership. With over a decade of dedicated focus in the Salesforce PDO space, she possesses a profound understanding of the platform and the ISV ecosystem. Notably, she has designed and developed more than 55 Salesforce ISV products and played a pivotal role in shaping the technology strategy for numerous teams of Salesforce consultants. Her guidance empowered these teams to successfully build and deliver over 100 products for the Salesforce AppExchange. Currently, Krishna holds a prominent position at Google, where she leads application engineering for YouTube’s global partnerships systems. Apart from her professional accomplishments, she takes immense pride in being a mother of two girls.

Table of Contents

Preface

Part 1: Setting the Stage

1

Introduction to the Salesforce Ecosystem and AppExchange

Salesforce and its ecosystem

AppExchange

Exploring the value and potential of building applications for AppExchange

What exactly do ISVs do on AppExchange?

Different types of partners

Evaluating the suitability of the Salesforce Platform for your application idea

Examples of existing AppExchange apps and their use cases

The AppExchange sweet spot – where applications thrive

Examples of applications that are not a good fit for the Salesforce platform

Software-as-a-Service products for Salesforce customers

Understanding ISVforce and OEM differences

Program build type – ISVforce

Program build type – OEM Embedded

Programs comparison

Marginal PNR Program

Choosing the right contract for your business

Blended model

Summary

Further reading

2

Becoming an AppExchange Partner

Overview of the AppExchange Partner Program

Navigating the AppExchange Partner onboarding lifecycle

Joining the AppExchange Partner Community

Partner agreements – the fun part (seriously)

SPPA

Business approval for your AppExchange solution

Crafting a business plan for the AppExchange marketplace – the recipe for app-tastic success

Call with the AppExchange ISV Partner team

PADA

Leveraging the AppExchange Partner Toolkit

PBO features and capabilities

The Environment Hub – your secret laboratory for app testing and packaging

LMA – your personal bouncer for app licenses

FMA for managing app features

Unlocking the full potential of your PBO

Package Visualizer

Salesforce ISV Cockpit

Custom development

Summary

Further reading

3

Designing Customer-Centric Applications

Identifying customer needs and pain points

Reasons why innovation projects fail

Your ideal customer profile

Navigating the JTBD framework

Why would someone hire your product?

Leveraging JTBD for essential features

Avoiding feature shock

Prioritize core functionality

Understand desired outcomes

Keep it lean and focused

Iterate and validate

Monitor and adjust

Creating value propositions aligned with customer needs

Step 1: Define your target customer segments

Step 2: Understand customers’ JTBD

Step 3: Create the customer profile

Step 4: Identify pain points and desired gains

Step 5: Design the value map

Step 6: Validate and iterate

Mapping customer journeys

The significance of mapping customer journeys

Identifying customer touchpoints and interactions

Visualizing the customer journey map

Analyzing and prioritizing improvements

Pricing model options

Pricing based on licenses

Payment terms and frequency

Free elements and trial periods

Understanding customers’ willingness to pay

Incorporating pricing into the design process

Identifying the product’s core value

Understanding the customers’ perception of value

Using pricing as a strategic tool

Aligning pricing with customer segments

Validating willingness to pay through customer feedback

Developing a comprehensive pricing plan

Value-based pricing

Competitive pricing

Understanding the product–market fit

Evaluating your app’s value proposition

Designing product bundles

Customer segment bundles

Understanding and leveraging price sensitivity

Setting prices for different market segments

Segmenting your market

Setting prices for different segments

Discounting for nonprofits

Reviewing and revising your pricing plan

Summary

Further readings

Part 2: Building Blocks

4

Exploring Salesforce Platform Technologies

Unraveling the mystery of packages

Managed packages – safeguarding your IP

1GP managed packages

2GP managed packages

Namespace – the unique identifier of your treasure chest

Package extensions – tailoring applications for multiple products and editions

Dev Hub

Localization best practices for managed packages

Apex – the backbone of customizable Salesforce applications

Dynamic Apex – the power of adaptability in AppExchange applications

Dynamic Apex or extension package?

Dependency injection pattern – a flexible approach to customization

Ensuring seamless support for custom implementations

Troubleshooting with the ISV Customer Debugger

Enhancing your application with Flow

Flow-enabling your features and functions

Providing flow templates and overridable flows

Offering IP-protected flows

Controlling the order of execution with flows – advantages of Trigger Order feature

Best practices and limitations

Blending Flow and Apex

Flow as an alternative to Apex for easier customizations

Prioritizing flows and invocable actions over Apex triggers

Custom Property Editors (CPEs)

Building a CPE

Leveraging Platform Cache for improved performance in managed packages

Platform Cache – an overview

Enabling free Platform Cache in your managed packages

Improving managed package performance with Platform Cache

Case study – enhancing performance in Formula Debugger with Platform Cache

Crafting the UI and UX with SLDS

Understanding Salesforce Lightning Design System (SLDS)

LWC standard component library

Summary

Further reading

5

Seamless Integration with External Systems

Technical architecture

Native applications

Composite applications

Extension packages for integrations

Integration patterns

Choosing the right integration pattern

Available technologies for outbound integrations

APIs or events?

Utilizing Salesforce APIs for inbound integrations

Types of Salesforce APIs

Choosing the right Salesforce API for integration

Developing an Apex REST endpoint

API rate limit management – ensuring efficient usage

Salesforce Connect

Salesforce Connect for ISVs

How can Salesforce Connect help reduce development costs?

Connected apps

Understanding Salesforce-connected apps and session IDs

Advantages of Salesforce-connected apps

Canvas SDK

Inherent challenges and benefits of Canvas SDK

Aura versus Visualforce versus LWC

Canvas application configurations and packaging dilemmas

Comparing integration via the REST API versus the Canvas SDK

Summary

6

Security Review

Understanding the security review process

Fees and timeline

Testing your application

Components required for the AppExchange security review process

The submission process

Security review operations verification

Failing the security review

Partner office hours

Security requirements

Developing secure applications

Avoiding common pitfalls

Scanning external systems and endpoints

Tools for scanning external systems and endpoints

The challenge with commercial APIs

Preparing false positive documentation

Making sure you haven’t forgotten anything

Crossing the security review finish line.

Periodic security re-reviews

Summary

Further reading

Part 3: Delivering Value

7

Release Management

Unveiling release management

The role of DevOps in Salesforce release management

The difference between deployment and release

Driving consistency and cost efficiency in releases

Effective communication in release management

Release naming convention

Understanding version types

Full releases

Patch releases

Beta releases

Applying a naming convention

Publishing your latest release on AppExchange

Discovering the power of push upgrades

Push upgrades – a brief overview

Push Upgrade API

Embracing push upgrades safely and effectively

Understanding push upgrade failures and monitoring results

Leveraging early releases in customer sandboxes

Ensuring customers use the latest package version

The importance of the latest version

Potential pitfalls and their remedies

Contractual clauses and support fees

Monitoring your package versions with the LMA

How often should you release and deploy?

Why don’t you just release weekly?

Summary

Further reading

8

Onboarding New Customers

Crafting an effective AppExchange listing

Creating a clear and compelling app name and headline

Writing an engaging app description and the first slide

Designing eye-catching app images, videos, and slides

Showcasing customer testimonials, reviews, and trust-building

Providing clear pricing, support information, and justifying your value

Optimizing your listing with keywords and searchability

The importance of updating your AppExchange listing for new managed package versions

Public or private

The art of customer onboarding

Recording an engaging demo video

Rolling out a test drive in the AppExchange cosmos

Facilitating app trials through direct installation from AppExchange

Converting trials into paying customers

A caveman’s guide to installing your application

System administrator – the key persona

Swift installation and upgrades – a must

High-quality installation guides

Enhancing installation with post-installation scripts

Implementing automated onboarding – toward scalable installations

Staying cool when your customers make local customizations

Embracing customer customization

Defining support levels for local changes

Providing documentation

Building a knowledge base

Regularly reviewing and learning

Voyage to product adoption

Understanding product adoption

Key factors of product adoption

Adopter categories – different stages, different needs

Crafting a product adoption framework

Integrating product-led growth strategies in onboarding new customers

Onboarding new customers with Professional Editions

Summary

9

Operational Excellence

Building efficient processes and workflows

Process implementation

Example – customer trial conclusions

Ensuring high-quality customer support

Support RACI matrix

Balancing proactive and reactive approaches in tech support

SLAs, service-level objectives, and support management

Subscriber Support Console

Maximizing revenue with AppExchange Checkout

AppExchange Checkout – operational efficiency with automation

Financial implications and revenue sharing

Applying AppExchange Checkout to your business

Managing subscriptions effectively

Limitations of using AppExchange Checkout

Leveraging the CMA for operational excellence

Harnessing the power of the CMA dashboard

Streamlining communication with email notifications

Getting started and customizing the CMA

Managing CMA settings for enhanced control

Efficient channel order management with the COA

What is the Channel Order App (COA)?

Training and access

The significance of the COA

Order types in the COA

Automating the ISV order submission process using the COA

License transfers and swaps

CMA versus COA – choosing the right order solution for your AppExchange business

Restrictions with OEM Embedded apps

Decision points for ISVforce apps

Summary

Part 4: Scaling for Success

10

Leveraging Analytics and Insights

AppExchange Partner Intelligence

AppExchange Marketplace Analytics

Mastering marketing impact

Understanding your guests

Making data-driven decisions

Key features

Activity summary

Filters

Visualizations

Accessing and navigating AppExchange Marketplace Analytics

Exporting data for further analysis

Customizing visualizations

Understanding customer interactions

AppExchange search mechanism

Keyword relevance

Engagement

Listing experience

Boosting your listing’s discoverability

AppExchange App Analytics

Enabling AppExchange App Analytics

Data types in AppExchange App Analytics

How to request data

CRM Analytics

Understanding CRM Analytics

Integrating and visualizing your data

Driving data-driven decisions

Delving deeper

Summary

11

Managing Technical Debt

What is technical debt?

Accumulation of technical debt over time

External factors contributing to technical debt

Tactical accrual of technical debt

Technical debt can drive your sales

Impact on periodic security re-reviews

Early warning signs of technical debt

The cost of technical debt

Tools and techniques for managing technical debt

Technical design review

Code reviews

Static code analysis

Automated testing

Refactoring

Documentation

Prioritization

Continuous learning and improvement

Reducing technical debt by refining your AppExchange solution.

Summary

Further reading

12

Navigating the Path to Success

Innovate or stagnate

Collaboration with Salesforce

Climbing the ladder of success: grow your business with the AppExchange Partner Program

Salesforce team: your allies in success

Platform Expert Consultations

Technology Consultations

Product Roadmap Consultations

Leveraging events for maximum impact

Demo jams: your spotlight to stardom!

AppExchange Marketing Program (AMP)

Main categories of AMP

AppExchange chat

Maximize your AMP return on investment

Leveraging external expertise

System integrators

Product Development Outsourcers (PDO)

Fractional Chief Technology Officer (fCTO)

Artificial Intelligence (AI): opportunities and challenges

Success metrics

Summary

Let’s wrap it up

Index

Other Books You May Enjoy

Preface

I still recall the days, years ago, when I first delved into creating my very own AppExchange app. My mind buzzed with ideas, but the path to becoming an ISV partner wasn’t straightforward. There’s a mountain of knowledge you’ve got to climb, and those early days are rife with opportunities for expensive blunders. Trust me – I’ve learned some lessons the hard way, which has made me truly understand how crucial it is to get your foundations right and know where your blind spots are.

That’s what pushed me to write down everything I’ve learned in this guide. Think of it as your playbook – packed with lessons, pro tips, and those “I wish someone had told me this earlier” insights, all aimed at helping you dodge the bullets I had to face and craft a killer AppExchange app from scratch.

Now, don’t get me wrong; this isn’t some memoir about my AppExchange escapades. It’s all about you – whether you’re a seasoned Salesforce developer, an aspiring AppExchange newbie, a visionary start-up founder, or a product manager eager to make your mark in the world of Salesforce. I’m confident that the practical knowledge and unique insights in this book will empower you to turn your ideas into reality and make the Salesforce ecosystem an even more vibrant, innovative space.

In the following chapters, you’ll embark on an exciting journey that covers everything, from the fundamentals of AppExchange development to cutting-edge AI opportunities ahead. Along the way, I’ll share stories from my personal experiences, highlighting the challenges I’ve faced and the lessons I’ve learned. I hope you’ll find these anecdotes not only entertaining but also insightful.

Finally, it’s my sincere hope that this book will serve as a launchpad for a new generation of AppExchange success stories. As Sir Isaac Newton once said, “If I have seen further, it is by standing on the shoulders of giants.” I’ve been fortunate enough to stand on the shoulders of many great minds in the Salesforce ecosystem, and I’m eager to pass that privilege on to you.

Alright, get ready and get excited! The future of AppExchange development is looking brighter than ever, and I couldn’t be more thrilled to have you join us on this amazing journey.

So, dive in and enjoy what’s coming your way. Happy reading and happy app building!

Who this book is for

This book has been crafted with a diverse readership in mind, encompassing individuals at various levels of familiarity and expertise within the Salesforce ecosystem. My primary target audience comprises the following personas:

Visionary entrepreneurs and start-up founders: If you have bold ideas and a vision for innovative products and services within the Salesforce ecosystem, this book can help you tap into the thriving AppExchange market and turn your vision into realityEntrepreneurs with existing applications on Heroku or AWS: If you’re a business owner considering an expansion into Salesforce AppExchange, even if you have limited prior experience with Salesforce, this book offers insights and guidance to navigate the platform effectivelySalesforce developers and architects: If you’re already immersed in the Salesforce ecosystem, and you’re eager to expand your knowledge and skills in AppExchange development, this book is a valuable resource for youProduct managers, Chief Product Officers (CPOs), and other stakeholders: Not everyone in this category is a developer, but if you play a pivotal role in shaping the direction and strategy of AppExchange applications, this book provides valuable insights to inform your decision-making processes

No matter where you stand within the Salesforce ecosystem, this book has something to offer you. It’s your gateway to enhancing your expertise and harnessing the potential of the Salesforce platform.

What this book covers

Chapter 1, Introduction to Salesforce Ecosystem and AppExchange, is the starting point of our journey where we dive into the Salesforce ecosystem. In this chapter, we will explore the vastness of Salesforce, discover the benefits of creating applications for AppExchange, assess whether the Salesforce Platform aligns with your application idea, examine ISV partnership options, and weigh the advantages and responsibilities of being a Salesforce ecosystem partner.

Chapter 2, Becoming an AppExchange Partner, discusses the AppExchange Partner Program structure and benefits, effective utilization of the AppExchange Partner Community, key partnership agreements, crafting tailored business plans for the Salesforce ecosystem, and leveraging the AppExchange Partner Toolkit (Partner Business Org, License Management App, Feature Management App, and so on), helping you to establish a solid foundation for a successful partnership in the Salesforce ecosystem.

Chapter 3, Designing Customer-Centric Applications, covers the art of creating applications that truly meet customer needs and provide value. It emphasizes understanding customer pain points, aligning value propositions, mapping customer journeys, and selecting effective pricing models. By the end of this chapter, you’ll possess the knowledge and insights needed to craft user-centric applications that leave a lasting impression in the AppExchange marketplace, helping customers solve their problems effectively.

Chapter 4, Exploring Salesforce Platform Technologies, is a journey into the lesser-known but highly valuable ISV-specific features of Salesforce. It sheds light on managed packages, Dynamic Apex, flows, custom property editors, Platform Cache, and the Salesforce Lightning Design System, offering insights into their functionalities and how they can be used to solve specific problems in AppExchange development.

Chapter 5, Seamless Integration with External Systems, is a comprehensive guide that equips you with the skills and tools needed to build robust bridges, connecting your Salesforce applications to external systems. This chapter covers technical architecture, integration patterns, Salesforce APIs, Salesforce Connect, the Canvas SDK, and connected apps, providing you with the knowledge to seamlessly integrate your applications with external platforms and navigate the Salesforce ecosystem with confidence.

Chapter 6, Security Review, equips you with the knowledge and tools to navigate the security review process, maintain high-security standards, comply with Salesforce security requirements, use scanning tools, document false positives, and continuously improve security for your Salesforce application.

Chapter 7, Release Management, is an exploration of the critical aspects of managing software releases within the Salesforce ecosystem. It serves as a vital bridge between the development phase and the end users, ensuring the smooth and consistent delivery of your software applications. In this chapter, we will delve into topics such as understanding the core principles of release management, identifying different types of software versions, utilizing push upgrades to facilitate seamless application updates, staying up to date with the latest package version, and determining the optimal frequency to release and deploy your software. By the end of this chapter, you will have gained the expertise to effectively guide your software applications from the development stage into the hands of your end users.

Chapter 8, Onboarding New Customers, is where we will learn the art of welcoming and retaining new customers in the Salesforce landscape. We’ll explore the strategies to craft a compelling AppExchange listing, the techniques for engaging and fun onboarding experiences, the secrets of creating cinematic demos, providing interactive trial experiences, offering clear installation instructions, and embracing customer customization while ensuring a smooth transition into your software’s world. By the end of this chapter, you’ll have the tools to create an effective onboarding process that encourages potential users to become long-term residents in the house of your software.

Chapter 9, Operational Excellence, embarks on an adventurous journey through the Salesforce wilderness to discover the riches of customer satisfaction and revenue growth. Along the way, we’ll explore the choice between the Checkout Management App (CMA) and the Channel Order App (COA), all in pursuit of the treasure of operational excellence.

Chapter 10, Leveraging Analytics and Insights, embarks on an archaeological journey through the AppExchange ruins to uncover the wisdom hidden in data, exploring Partner Intelligence, Marketplace Analytics, and App Analytics to optimize AppExchange listings and enhance user experiences. We’ll also delve into CRM Analytics, combining in-house data with Salesforce insights, and learn how to make data-driven decisions on our path to AppExchange success.

Chapter 11, Managing Technical Debt, covers the concept of technical debt, similar to financial debt, and its implications on security, the identification of warning signs, tools, and strategies for management. We will also learn how to always be ready for security review re-submissions.

Chapter 12, Navigating the Path to Success, explores the significance of innovation as a competitive edge, the importance of collaboration with Salesforce, the impact of external expertise, the opportunities and challenges of AI in the AppExchange domain, and the essential success metrics to validate strategies, in the culmination of our journey through the Salesforce AppExchange ecosystem.

Disclaimer: The illustrative images in this book have been generated using MidJourney, a digital visualization tool. These images are entirely artificial and do not represent real people or events. They are artistic creations designed to enhance the reader's experience.

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Part 1:Setting the Stage

Ah, the Salesforce ecosystem and AppExchange. Think of them as the grand ballroom of tech where you’re not just a guest but the star performer. Before you take the stage, however, you need to know your lines, your props, and which way the exit is (just in case). Before our show begins, we need to do a dress rehearsal.

First, we’ll embark on a behind-the-scenes tour of the Salesforce ecosystem and AppExchange, to familiarize ourselves with the spotlight and where not to step. Then, as you transform into the Independent Software Vendor (ISV) partner you were destined to be, we’ll share secrets (shh!) on crafting apps that not only dazzle but also resonate with the audience... I mean, customers.

By the time the curtain falls on this part, you’ll have your performance mapped out, ready to receive a standing ovation on AppExchange.

Our setlist includes the following:

Chapter 1, Introduction to Salesforce Ecosystem and AppExchangeChapter 2, Becoming an AppExchange PartnerChapter 3, Designing Customer-Centric Applications

1

Introduction to the Salesforce Ecosystem and AppExchange

Welcome, trailblazers, to the exciting adventure of Salesforce and its AppExchange marketplace! As you embark on this journey through the uncharted territories of the Salesforce ecosystem, I’ll be your trusty guide, helping you navigate the twists and turns and uncover hidden treasures along the way.

The stakes are high, as this expedition could lead to unprecedented opportunities for businesses seeking to create and distribute innovative applications that solve real-world challenges. So, grab your metaphorical hiking boots because in this chapter, we’ll be exploring the following topics:

The expansive landscape of Salesforce and its ecosystem, allowing you to fully comprehend the platform’s potentialThe untapped value of building applications for AppExchange, enabling you to make informed decisions about joining the expeditionDetermining if the Salesforce platform is the right basecamp for your application idea, ensuring a strong foundation for your ventureVenturing into the unknown territories of the independent software vendor (ISV) partnership, empowering you to map out the best route for your businessEvaluating the rewards and responsibilities that come with becoming a partner in the Salesforce ecosystem, including various contractual arrangements such as Original Equipment Manufacturer (OEM) and ISVforce, preparing you to conquer the diverse landscape of opportunities

These topics are critical for every trailblazer such as you because they will help you make informed decisions about your involvement in the Salesforce ecosystem and capitalize on the unique opportunities that AppExchange provides. By understanding the roles and responsibilities associated with ISV partnership, you will be able to choose the right path for the success of your business.

Now, strap on your backpack and prepare for a thrilling journey into the wilds of Salesforce and AppExchange. It’s time to blaze a trail to success! Let’s get started!

Salesforce and its ecosystem

Picture this: it’s 1999, and you’re struggling to keep track of your customer interactions, manage your sales pipeline, and monitor your sales team’s performance. What do you do? Well, luckily for you, a group of visionaries founded Salesforce, a cloud-based customer relationship management (CRM) platform. And voilà! Salesforce saves the day, growing into one of the world’s leading CRM platforms, boasting over 150,000 customers1 and a whopping 23%2market share.

1 https://www.salesforce.com/campaign/worlds-number-one-CRM/

2 https://www.salesforce.com/news/stories/idc-crm-market-share-ranking-2023/

Nowadays, Salesforce’s ecosystem is like an all-you-can-eat buffet of products, services, and features, allowing businesses to mix and match to create a customized, mouth-watering platter. The key components of this smorgasbord include the following:

Sales Cloud: Think of it as the CRM butler, assisting businesses in managing their sales pipeline, customer interactions, and sales team performanceService Cloud: Offers efficient and tailored customer service support across various channelsCommunity Cloud: A digital platform where customers, partners, and employees collaborate, exchange ideas, and solve problems, enhancing engagement and loyalty within the Salesforce environmentMarketing Cloud: Your very own marketing maestro, orchestrating campaigns across email, social, and mobile channels like a seasoned conductorTableau: A data visualization and analytics platform that allows businesses to create interactive dashboards and reports from their data, gaining deeper insights into customer data to drive growth and innovationSlack: A collaboration hub that streamlines communication and file-sharing, with integration with Salesforce providing real-time notifications and updates to enable seamless teamwork across platformsMuleSoft: An integration platform that connects different systems and applications, streamlining workflows, reducing manual data entry, and automating business processes, with deep integration with Salesforce providing a unified view of customer data across systemsCommerce Cloud: The e-commerce genie, granting businesses the power to create personalized shopping experiences across multiple channelsPlatform: A platform as a service (PaaS) playground that lets developers build and deploy custom applications atop SalesforceTrailhead: Salesforce’s online platform that offers interactive training for users, developers, and administrators

One of the key features of Salesforce is its cloud computing platform. Now, I know what you’re thinking—“Cloud computing? Isn’t that just where all the data goes when you delete it?” But fear not, dear reader, for cloud computing is much more than that. It allows businesses to access computing resources and software applications over the internet, rather than having to install and manage them on their own physical servers. This enables businesses to reduce IT costs, increase scalability, and improve flexibility and accessibility. Plus, it sounds much cooler than saying “I store everything on a USB drive.”

But what sets Salesforce apart from other cloud-based platforms is its multi-tenant architecture. In this setup, multiple customers share the same underlying infrastructure, much like living in an eco-friendly apartment building. Each customer’s data and resources are securely isolated, just like having separate rooms and personal belongings in an apartment. This approach enables Salesforce to optimize resource utilization and easily scale its platform to cater to the diverse needs of its users, all while maintaining stringent data security and privacy protocols.

And let’s not forget about AppExchange—the marketplace for third-party applications and solutions that integrate with Salesforce.

AppExchange

If you’ve secured a copy of this book, chances are you’re no stranger to AppExchange and already have aspirations of crafting an app on this platform. But, for the slight possibility that this tome landed in your hands courtesy of a Christmas surprise from your tech-savvy grandma who thought you could use a new hobby, allow me to elaborate on what AppExchange truly is. AppExchange is a marketplace where over 91%3 of Salesforce customers use the various digital tools available. They benefit from the capabilities of the Salesforce Customer 360 platform, which provides them with all the resources they need for digital success. The AppExchange marketplace offers a wide range of tools, significantly influencing the Salesforce economy. According to an International Data Corporation (IDC) study4, it’s expected to generate a mouthwatering $1.6 trillion in new business revenue by 2026. The cherry on top? For every dollar Salesforce earns this year, the ecosystem will make $4.96, and by 2026, that number will rise to $6.19. With over 5,000 solutions and with over more than 10 million5 installs under its belt, this bustling marketplace is a testament to the power of collaboration in the world of enterprise software, a vital component for 150,000 customers in 100 countries.

3 https://www.salesforce.com/news/stories/link-appexchange-migration/

4 https://www.salesforce.com/content/dam/web/en_us/www/documents/platform/idc-platform-bv-report-2020.pdf

5 https://appexchange.salesforce.com/

Innovation is the secret ingredient that keeps AppExchange exciting. ISVs are investing in developing new products and enhancing existing ones, incorporating cutting-edge technologies such as artificial intelligence (AI), automation, and data analytics to create a remarkable experience for users.

Looking forward, the potential for growth in the AppExchange marketplace is as vast as an expansive landscape. The ongoing success of the Salesforce economy shows there’s always room for new and innovative ideas, providing both new and established AppExchange partners with a unique opportunity to add their own remarkable offerings to the menu.

Embarking on the AppExchange journey – familiarizing yourself with the interface

As a new AppExchange partner, it’s essential to acquaint yourself with the AppExchange interface. By understanding how potential customers navigate and search for apps, you can better position your app for success. To access the AppExchange marketplace, visit the official link at https://appexchange.salesforce.com or find it within the Salesforce platform.

The AppExchange marketplace is organized into various categories, including solutions by type, products, and industries, making it easy for users to find what they’re looking for. Spend time exploring these categories and observe how other solutions are presented, as it will help you tailor your app’s listing to appeal to your target audience.

By immersing yourself in the AppExchange experience, you can gain valuable insights into what customers seek and expect. This knowledge will not only help you develop a competitive app but also ensure its discoverability and relevance in the marketplace.

Salesforce Labs

In the vast landscape of the AppExchange marketplace, Salesforce Labs stands out. This segment of the marketplace features over 2606 apps developed by Salesforce employees, offering an assortment of free apps and solutions designed to cater to a wide range of Salesforce users’ needs.

6 https://appexchange.salesforce.com/category/salesforce-labs-apps

The apps vary in their complexity, meeting diverse business requirements, from straightforward tools to intricate solutions. Salesforce Labs acts as a testing ground, giving users the opportunity to try out new features without the necessity of custom development or in-depth testing. Additionally, it’s a community-centric initiative, welcoming feedback and contributions to continuously improve and refine the apps.

Exploring the value and potential of building applications for AppExchange

As you venture deeper into the wilds of the Salesforce ecosystem, it’s time to survey the landscape and unearth the hidden treasures that await in building applications for AppExchange. Just as every explorer seeks riches on their journey, partners have discovered bountiful rewards by participating in the AppExchange program.

The Valoir report on AppExchange7, August 2022, revealed four gleaming gems of benefits experienced by partners: accelerated sales cycles, reduced security, and due diligence efforts, reduced infrastructure management costs, and increased marketing reach with fewer internal marketing resources.

7 https://valoir.com/blog-1/salesforceappexchange

Imagine discovering a shortcut to your destination, accelerating sales cycles by up to 20% as you traverse the AppExchange terrain. The validation of your solution in the eyes of Salesforce customers is like having a trusty compass that guides prospects toward your offerings.

As you navigate the treacherous cliffs of security and due diligence, fear not! The rigorous review required for AppExchange listings helps partners slash the time and resources associated with these challenges by up to 80%.

The Salesforce platform is assisting ISVs in reducing infrastructure management costs by up to 75%. By leveraging its pre-built capabilities and components, you can focus your investments on product innovation, scaling the heights of success.

Finally, the Salesforce AppExchange Marketing Program (AMP) and co-marketing opportunities allow you to blaze a trail with fewer marketing resources, achieving similar or better outcomes with 30% less effort. We will dive deeper into AMP in Chapter 12.

Aren’t you convinced yet? Let’s turn our attention to another source: The Business Value of Salesforce Platform for Application Development8, published by IDC in October 2020. This report investigates the value of Salesforce tools and technologies in the context of application development. Keep in mind, fellow explorers, that AppExchange partners wield the same tools as they forge their path through the Salesforce wilderness.

8 https://www.salesforce.com/content/dam/web/en_us/www/documents/platform/idc-platform-bv-report-2020.pdf

The platform’s key benefits for both Salesforce customers and AppExchange partners are impressive, as we can see here:

Increased efficiency in application development: Like discovering a secret shortcut, the Salesforce Platform reduces application development life cycles by 68%, boosting productivity by 56% and leading to more apps and features released annuallyImproved application quality and reliability: The platform is like a trusty adventurer’s gear, ensuring high levels of application reliability, reducing unplanned downtime by 89%, and enhancing productivity for business end usersOptimized access, adoption, and use of business-critical applications: Chart a course to better customer satisfaction, improved business results, and greater revenue, with an average of $5.7 million additional new revenue generated per yearEnhanced efficiency of application management teams: Like a well-organized expedition, the Salesforce platform enables teams to manage applications 63% more efficiently, streamlining workflows and cutting overhead

The IDC report indicates that 35,086 internal IT users utilize tools akin to those used by ISV developers, underscoring the report’s pertinence for AppExchange partners. Given this insight, it’s evident that the Salesforce Platform provides significant business value for partners in the realm of application development. Notably, while the report primarily focuses on Salesforce customers, the shared tool usage with ISV developers makes it pertinent to AppExchange partners.

What exactly do ISVs do on AppExchange?

Picture yourself strolling through the bustling Salesforce neighborhood, admiring the shiny skyscrapers of business functionality. The streets are filled with AppExchange partners, the superheroes of this metropolis, working tirelessly to make Salesforce an even better place to be.

So, what exactly do these ISV partners do on AppExchange? Let’s take a look:

Enhancing Salesforce’s capabilities: ISVs work to augment Salesforce’s existing functionalities. They focus on helping customers derive more value from the platform by extending and refining its features.Addressing specific needs: These partners identify and address areas where Salesforce’s offerings might be limited or lacking. By developing solutions for these areas, they ensure that users have a more comprehensive and seamless experience with Salesforce.Providing industry-specific solutions: ISVs specialize in creating apps tailored to particular industries or market segments. They offer targeted solutions that benefit businesses, regardless of their familiarity with Salesforce.

But to truly succeed on AppExchange, partners must focus on three essential ingredients, as follows:

Whipping up intellectual property (IP): By collaborating with Salesforce, partners have the flexibility to create innovative applications utilizing APIs or building their applications solely with Salesforce technologyPackaging the app for success: Like a beautifully wrapped gift, partners must market and sell their apps effectively to drive customer adoptionAssembling a dream team: By joining the partner program, partners need to allocate resources and personnel to ensure their apps reach their full potential, developing a long-term marketing, sales, and support strategy

In the end, ISV partners are the lifeblood of the Salesforce ecosystem.

Different types of partners

Salesforce categorizes its partners into different types, so let’s get some terms straight.

Firstly, Salesforce recognizes two primary types of partners: ISVs and Consulting Partners. In this book, when I use the term “Partner”, I’m referring to ISVs by default. So, if you come across the term “Salesforce Partner” online and find information that doesn’t seem to pertain to you, this distinction is likely the reason.

The line separating these two categories is straightforward: ISVs focus on developing AppExchange products, while Consulting Partners, often referred to as System Integrators (SIs), offer consulting and implementation services tailored for Salesforce customers.

But there’s another partner type worth noting: Product Development Outsourcers (PDOs). PDOs provide consulting services specifically for ISVs. Essentially, if you’re an ISV looking for expertise in product development, a PDO is who you’d reach out to.

Figure 1.1: Salesforce Partners landscape

Delving deeper into collaboration dynamics, Chapter 12 of this book will explore how you can effectively collaborate with both PDOs and SIs.

Evaluating the suitability of the Salesforce Platform for your application idea

Is the Salesforce platform the ideal lair for your application idea? After all, even superheroes need the perfect base of operations to suit their powers.

Salesforce is a powerful platform, brimming with tools and features for constructing and deploying custom applications. However, not all solution ideas may find their perfect sidekick within Salesforce. Suit up and consider these factors when evaluating if Salesforce is the right choice for you:

Application requirements: Consider the specific powers of your application, such as functionality, scalability, and integration needs. Assess if Salesforce’s arsenal of tools and features can meet these requirements or if you need to seek aid from a different platform or technology.User experience (UX): Determine if the Salesforce platform can deliver the UX your application needs to save the day. Salesforce offers a multitude of tools for crafting custom user interfaces (UIs), but you may need to call upon additional technologies to create a truly extraordinary and unique UX. On the flip side, Salesforce apps tend to excel when they mirror the appearance and functionality of the standard Salesforce interface, delivering a seamless UX.Integration needs: Evaluate if Salesforce can form a seamless alliance with your existing systems and data sources. Salesforce provides various integration options, such as APIs and connectors, but you may need to enlist other tools or technologies to achieve total integration harmony.Security and compliance: Ponder the security and compliance demands of your application. Salesforce boasts powerful security and compliance measures, but you may need to take extra steps to ensure your app meets the specific requirements of your industry or region. Additionally, you will need to consider the requirement for the app to operate within what Salesforce determines to be a secure environment. This might result in some app ideas being disqualified entirely.Time and resource constraints: Weigh up whether constructing your application on Salesforce aligns with your time and resource constraints. Building an app for Salesforce can demand significant investments, so it’s crucial to assess if it syncs with your business goals and priorities.

By examining these factors, you can determine if the Salesforce platform is the ideal choice for your idea.

Examples of existing AppExchange apps and their use cases

The following examples demonstrate the breadth and diversity of applications available on AppExchange, including electronic signature solutions, document generation, and reporting tools, professional services automation solutions, field service management solutions, and data aggregation and calculation tools:

FormulaShare9: FormulaShare is an advanced dynamic sharing rules app on Salesforce that allows admins to dynamically share standard and custom objects with roles, groups, or users identified in the formula, lookup, or text fields. With FormulaShare, admins can easily create sharing rules based on the contents of fields they control without the need for coding or complex configurations. FormulaShare offers a freemium model that allows users to use up to 3 standard rules and 1 cross-object rule, and share up to 10,000 records. For larger organizations with more complex sharing needs, FormulaShare offers two premium versions: Enterprise and Unlimited.

9 https://appexchange.salesforce.com/appxListingDetail?listingId=a0N3A00000FR5TCUA1

Ask Your Document10: Your Salesforce Documents AI - like ChatGPT but for your Documents, Files, and Attachments. This smart app integrates with Salesforce for easy on-platform file processing and inquiries. Leverage AI to ask and answer questions about any file content, simplifying data analysis. With a user-friendly interface, robust data security, and quick installation from AppExchange, it's perfect for businesses of all sizes wanting to streamline file tasks.

10 https://askyourdocument.aquivalabs.com/

Kaptio Travel Platform11: Kaptio is a travel and tourism management solution. It provides a comprehensive set of features for managing travel bookings, reservations, and itineraries, all within the Salesforce environment. Kaptio allows travel agents and operators to streamline their workflow, automate their processes, and provide exceptional customer service. With Kaptio, users can manage their entire travel business, from sales and marketing to customer service and support, all from one unified platform.

11 https://www.kaptio.com/

IPfolio12: IPfolio is an IP management solution. It allows users to manage, track, and collaborate on their IP assets, such as patents, trademarks, and licenses, all within the Salesforce platform. IPfolio streamlines the IP management process by providing a centralized and organized system, enabling organizations to make informed decisions and protect their valuable IP assets.

12 https://ipfolio.com

Hapi13: Hapi combines deep hospitality experience with Salesforce platform expertise. The result is expert guidance, best practices and proven methodologies when implementing Salesforce solutions for hotel companies.

13 https://www.hapicloud.io/

These applications provide unique solutions and benefits for Salesforce users, enabling them to streamline their business processes, increase efficiency, and improve customer satisfaction. By leveraging the Salesforce platform and ecosystem, these applications offer customized solutions to businesses of all sizes and industries.

Meet your new best friend – Formula Debugger

Throughout the upcoming chapters, I’ll refer to the Formula Debugger app, which I developed and self-published a while ago, to provide examples of how AppExchange partners can implement particular tools and features. This will give you a hands-on understanding of the development process and the benefits of creating and publishing apps on AppExchange.

Who uses it? Typically, Salesforce administrators, who are knee-deep in formula fields, are trying to make sense of it all. Suddenly, they find themselves wishing for a magical helper that could make their lives easier. Well, their wish is granted! Here’s what the Formula Debugger app brings to the (debugging) table:

Syntax analysis: The app highlights matching parentheses like a syntax fairy, making it easier to understand and correct formula field syntaxEasy test data preparation: Formula Debugger streamlines the process of preparing test data, eliminating the need for any Data Manipulation Language (DML) wizardryAI integration: The app harnesses the power of AI to detect potential issues with formula fields and kindly provides suggestions on how to fix them

Here’s what the interface of the application looks like:

Figure 1.2: Formula Debugger

If you want, you can install it for free by searching for “formuladebugger” on AppExchange, or use the following link to teleport there directly: https://formuladebugger.jakubstefaniak.com.

Happy debugging!

The AppExchange sweet spot – where applications thrive

Based on the examples and discussions in this chapter, the ideal applications for AppExchange are those that do the following:

Provide unique solutions and benefits for Salesforce users. You cannot just build a clone of Sales Cloud or Service Cloud!Streamline business processes, increase efficiency, and improve customer satisfaction.Leverage the Salesforce platform and ecosystem to deliver customized solutions to businesses of all sizes and industries.Meet Salesforce’s security, privacy, and usability standards.Align with the Salesforce platform’s strengths and limitations, such as web-based applications, integrations with other systems, and cloud-based solutions.

By building applications that meet these criteria, you can take advantage of the benefits of becoming an ISV partner and leverage the potential of AppExchange to expand your customer base, generate recurring revenue streams, and gain visibility and credibility within the Salesforce ecosystem.

Examples of applications that are not a good fit for the Salesforce platform

While Salesforce offers a range of tools and features for building custom applications, some application types may not align with the Salesforce platform’s strengths or limitations. Here are some examples:

Gaming applications: The Salesforce platform is primarily designed for business applications and may not be the best fit for gaming applications that require high-performance graphics and processing capabilities.Resource-intensive applications: The Salesforce platform may not be suitable for applications that require extensive computing resources or real-time processing, such as complex machine learning (ML) or data analysis applications. AppExchange products should not attempt to carry out this processing on-platform but rather integrate with systems better positioned to handle complex processing use cases. Just so you know, in the Salesforce ecosystem, there are other options available. For instance, Heroku provides a robust platform specifically designed to handle resource-intensive computing tasks. Additionally, Salesforce offers its own proprietary AI solutions that are capable of effectively addressing advanced data processing needs.Standalone desktop applications: The Salesforce platform is cloud-based and primarily designed for web-based applications. Standalone desktop applications that require offline functionality may not be a good fit for the Salesforce platform.Custom hardware applications: Applications that require custom hardware or integration with physical devices may not be a good fit for the Salesforce platform, as it primarily focuses on software-based solutions.

By understanding the limitations of the Salesforce platform, you can make informed decisions about whether it is the right choice for your application idea. If your application falls outside the scope of the Salesforce platform, you may need to explore alternative technologies or platforms that better align with your requirements.

Software-as-a-Service products for Salesforce customers

Additionally, the AppExchange marketplace accepts Software-as-a-Service (SaaS) products that integrate with Salesforce and provide unique solutions for Salesforce users. These SaaS companies can also become AppExchange partners and list their products on the marketplace, highlighting their partnership with Salesforce and the security of their applications. However, becoming an AppExchange partner with a paid-for app listing requires sharing a percentage of net revenue (PNR) with Salesforce, which is why some companies have chosen not to become partners. Companies need to evaluate the business implications of becoming a partner despite the straightforward technical aspect of going through a security review. While this book focuses on building applications on the Salesforce platform, integrating with Salesforce through SaaS products offers businesses a variety of solutions and applications, both on and off the platform, to customize and extend their Salesforce instance based on their unique requirements.

Understanding ISVforce and OEM differences

The Salesforce ISV partnership world is like an ice cream shop, and you’re here to choose the perfect flavor for your business. In one corner, we have ISVforce contracts, and in the other, we have OEM contracts. Both are delicious, but which one suits your taste buds best? Let’s dig into the details to help you make the right choice.

Program build type – ISVforce

ISVforce partners are like the classic vanilla flavor of the Salesforce dessert world. They whip up applications built on the Salesforce platform, ready to be savored on the AppExchange menu. ISVforce partners can sprinkle in tasty toppings (think third-party integrations) and serve up a delightful customer experience. However, they must share a scoop of their revenue with Salesforce and comply with the platform’s development guidelines.

ISVforce encompasses several key aspects, which include the following:

Crafting and selling appetizing applications on the Salesforce platform to existingSalesforce usersCustomizing and extending applications within the Salesforce ecosystemSharing a PNR with SalesforceComplying with Salesforce’s development guidelines and best practices

Why choose ISVforce?

ISVforce is like the crowd-pleasing main course at a Salesforce banquet. These applications typically expand Salesforce’s functionality in some way—namely, they’re the delectable side dishes that complement the main entrée within the ecosystem. Many app creators realize that a significant number of their customers and prospects are already feasting at the Salesforce table, and they want to bring their culinary creations where their target market is. Typically, this involves enhancing the Salesforce Cloud offering (such as Sales, Service, Community, or Industry Clouds) in a manner that benefits both the partner and Salesforce.

Another tantalizing aspect of ISVforce is that customers of ISVforce can whip up their own creative concoctions by extending their application through custom objects. This added flexibility and scalability act as a secret ingredient that significantly expands your total market opportunity, providing a level of versatility that is not typically achievable with the OEM Embedded solution. While OEM customers can create up to 10 custom objects for integration purposes, the usage of these custom objects is strictly regulated to ensure that OEM customers are not building custom applications beyond established boundaries.

If you’re crafting an application that relies on functionality within specific licenses (for example, Customer Communities), the customer must purchase the license from Salesforce before they can savor your app.

Program build type – OEM Embedded

OEM is like a unique, customizable cookie dough ice cream. These partners embed Salesforce technology into their own solutions, creating custom-branded offerings for their customers. The beauty of OEM partnerships lies in the freedom to create unique UXs and sell solutions directly without the obligation to list them on AppExchange. However, it’s important to mention that while ISV partners are not obligated to publish on the AppExchange marketplace, some OEM partners do opt to have their applications listed on AppExchange. Regardless of listing status, OEM partners are still required to share a portion of their revenue with Salesforce.

OEM Embedded encompasses several key aspects, which include the following:

Embedding Salesforce technology into custom-branded solutionsBuilding on top of the Salesforce platform, without any references to other products such as Sales, Service, Marketing, Commerce, or Industry cloudsSell directly to customers (even without an AppExchange listing!)Share a higher PNR with Salesforce

As you savor these two flavors, keep in mind your business goals and requirements. For example, some successful Salesforce partners have opted for the OEM flavor, gaining the opportunity to resell additional technologies and add-ons unavailable to classic ISVforce.

Why choose OEM Embedded?

OEM Embedded applications have a primary focus on revolutionizing the infrastructure within specific industry verticals such as healthcare, finance, manufacturing, and more. These applications have the ability to attract a diverse range of customers, whether or not they are currently using the Salesforce platform. It’s important to highlight that OEM Embedded solutions can also generate interest from new users within existing Salesforce customer organizations. For example, an HR department that is not currently utilizing Salesforce may opt to purchase an OEM product to meet their specific needs, while other departments such as Sales may already be regular users of Sales Cloud.

The benefit of OEM-embedded applications is the freedom to sell not only to existing Salesforce customers but also to a broader audience. Existing Salesforce customers can easily discover, purchase, and install OEM Embedded applications from the AppExchange marketplace, similar to how they would with an ISVforce application. Furthermore, for new customers, it is possible to provision a new Salesforce org for them using the Trialforce technology, without the requirement of directly connecting them to Salesforce. It’s important to note that OEM customers receive an OEM Salesforce platform license, which is specifically tailored for the use of the OEM application.

Unlike ISVforce solutions that require the purchase of an additional license from Salesforce, OEM Embedded applications only have two specific types of licenses that can be made available to customers, as follows:

Lightning Platform (required): Allows customers to utilize the Salesforce platform, which is also identified as the Salesforce Platform license. However, it’s important to note that licenses obtained from OEM partners are specifically intended for accessing and utilizing the partner solution. In order to broaden the capabilities of the partner solution, end users are permitted to create, access, and employ an additional 10 custom objects per solution. However, these custom objects are restricted to use solely with the partner solution. Please note that these contractual limits aren’t automatically enforced. It’s on the customer to make sure they don’t set up more than 10 custom objects or use them in ways that aren’t permitted.Customer Community (optional): Enables customers or partners of the OEM customer to access a designated portion of the OEM application, facilitating interactions with their data.

Ultimately, the decision between ISVforce and OEM contracts depends on various factors, including your business’s appetite for customization, access to additional technologies, revenue sharing, and the existing user base within your go-to-market (GTM) strategy. It’s crucial to consider whether your target users already have Salesforce licenses or not, as this can significantly impact the suitability and alignment of either option with your business objectives. However, the decision comes with a trade-off: OEM partners are required to share a higher PNR with Salesforce, compared to ISVforce.

Programs comparison

In the following table, we will explore and compare the key features and distinctions between ISVforce and OEM Embedded, covering aspects such as their overview, target market, pricing, payment basis, products, reselling eligibility, and restrictions on Salesforce objects:

Feature

ISVforce

OEM

Overview

Extend functionality of Salesforce products and build integrations with CRM objects

Apps sold to both current Salesforce and non-Salesforce customers

Target market

Sold exclusively to Salesforce users

Sold to both Salesforce and non-Salesforce customers

Pricing

By default 15% PNR*

By default 25% PNR*

Products

Package installed on top of Salesforce-sold licenses (for example, Sales/Service Cloud)

App sold as a standalone solution with a restricted OEM Embedded license

Reselling eligibility

Partners not eligible to resell Salesforce products

Partners may resell certain add-on products to non-Salesforce customers

Restrictions on Salesforce objects

None

Cannot extend or replicate standard Salesforce objects

Configuring and Maintaining Salesforce Orgs for Customers

No

Potentially yes, especially if you’re providing a dedicated Salesforce org

Customers’ Training and Support Expectations

Your app only

Your app and Salesforce platform

*As of today (FY24), the PNR rates are as described. It’s important to keep in mind that these pricing terms may change in the future. For the most accurate and current information, please visit the Salesforce Partners website at https://partners.salesforce.com.

Marginal PNR Program

In the past, ISVs paid fixed royalty rates for each license type: 25% for OEM and 15% for ISVforce. However, the year 2020 brought a game-changing update, rewarding larger and more successful app developers with reduced royalty rates. Generally, partners joining the AppExchange Partner Program14 after March 1, 2020, are automatically enrolled in this benefit, while existing partners can also apply.

14 https://partners.salesforce.com/s/education/appinnovators/AppExchange_Partner_Program?language=en

Partners become eligible for reduced PNR rates on future and add-on bookings when their Annual Order Value (AOV) reaches or exceeds $1,000,000. As partners progress through AOV bands, their PNR rates decrease accordingly. As of today (FY24), the Marginal PNR Program is outlined in the following table. However, it is important to note that Salesforce has the authority to make updates or changes to the Marginal PNR Program Benefit at its own discretion, without necessarily providing prior notice. The Marginal PNR Program Benefit is one of the Program Benefits offered under the Salesforce Partner Program Agreement (SPPA), and you will gain a more comprehensive understanding of it in the upcoming chapter:

AOV band

OEM Program PNR rate

ISVforce Program PNR rate

<$1,000,000

25%

15%

$1,000,001 - $2,500,000

23%

14%

$2,500,001 - $5,000,000

21%

13%

$5,000,001 - $10,000,000

19%

12%

$10,000,001 - $20,000,000

17%

11%

$20,000,001+

15%

10%

Note that only partners with an AOV above $1,000,000 will experience a reduction in PNR rates on new and add-on businesses. Certain non-standard terms may disqualify partners from enrolling in the Marginal PNR Program Benefit.

Choosing the right contract for your business

Welcome to the Great Ice Cream Debate: ISVforce versus OEM contracts! Now that you’ve had a taste of both flavors, it’s time to choose the perfect scoop for your business. Let’s weigh up the sprinkles and cherries of each option so that you can make an informed decision on which contract suits you best.