Marketplace margins (ISV to Partner private offers)

Appropriate roles: Global admin | Billing admin | Admin agent | Sales agent | Helpdesk agent

As a CSP partner, you may have an existing relationship with some Independent Software Vendors (ISVs) who want to extend a private offer to you. A private offer enables the ISV publisher to provide a margin on their published solution to incentivize you to sell that solution to their customers.

If you discover a solution that you'd like to resell to your customers published by an ISV who you don't have an existing relationship with, you can reach out to the ISV to inquire if they're willing to extend a private offer margin to you.

The ISV publisher’s contact information can be found by selecting the desired solution from the Partner Center Marketplace page in the Pricing workspace.

Understand private offer margins

When the ISV publisher creates the private offer, they can configure the private offer as a percentage discount applied to the original price of the solution or as a custom price that overrides the original price of the solution. The ISV publisher may choose to extend the private offer on purchases made for all your customers or for a subset of your customers.

When the ISV publisher creates the private offer, they must configure a start and end date on the margin they extend to you for their solution. Start and end dates are listed on the Margins page in the Pricing workspace.

Margins will only be applied to purchases made during that time frame. If you renew a subscription to a product within the private offer start and end dates, the renewal will have the margin applied. If you renew a subscription after the margin end date, the margin won't be applied.

Some products are priced per user. If you increase the number of seats/users for those offers during the private offer timeframe, the pricing for the license-based portion of the charges will maintain the discount until the end of the subscription term. The margin applied to the consumption won't be maintained after the margin end date.

Reach out to the ISV publisher if you would like them to extend the margin period.

View private offer margins in Partner Center

To discover margins extended to you by ISV publishers, follow these steps:

  1. Sign in to the Partner Center dashboard and select the Pricing tile.

  2. Select Margins. If an ISV has extended a private offer margin to you, you'll see it listed here.

    • If the ISV specified the customers for whom the margin is applicable, you'll see the customer information in the Customer name and Customer ID columns. If the ISV configured the margin to be available to all your customers, then you'll see “All customers” listed in those columns.
    • If the ISV has configured the private offer as a percentage discount, you'll see it listed in the Margin column. If the ISV has configured the private offer as a custom price, then you'll see a “Custom pricing” link in the Margin column. Selecting the “Custom pricing” link opens a panel that shows more detail.
  3. You can also select Download CSV at the top of the page to download the margins data in a comma delimited format.

Margins data can also be retrieved via API. Visit Get margins and Download margins for more information.

Understand pricing for products with margins

The Margins page doesn't contain information about the original pricing of the offers listed. To view the original pricing, visit Partner Center Price lists and scroll down to the Marketplace section.

The Marketplace price list is shared across all CSP partners and contains retail pricing. You can apply the percentage discount listed on the Margins page to the retail price of the product you want to purchase to understand the final price of the item before purchasing it.

Purchase products with private offer margins

Any margin extended to you by an ISV publisher will be automatically applied as you purchase the product for your customer through Partner Center or deploy the product from the Microsoft Azure portal. No other steps are necessary to receive the discount. You can't opt out of a margin after the ISV has extended it to you.

Understand billing for products with private offer margins

To understand the billed amount after you’ve purchased a product with a private offer margin, follow these steps:

  1. Sign in to the Partner Center dashboard and select the Billing tile.
  2. In the Billing history section, select the Recurring and one-time purchases pivot.
  3. Select the Reconciliation file link to download the file.

Use the following data in the reconciliation file to understand if a private offer margin was applied to the transaction:

  • UnitPrice shows the original price set by the ISV.
  • EffectiveUnitPrice shows the price after margin is applied.
  • PriceAdjustmentDescription shows “Private offer margin applied” if a margin was applied on that purchase.

See Billing for marketplace offers to learn more.

Private offer margins and indirect resellers

Margins are made available only to partners billed by Microsoft. This includes transacting partners such as indirect providers and direct bill partners. An ISV can't extend a margin to an indirect reseller, but they can provide a margin to an indirect provider who may decide to pass the discount along to their indirect reseller (though they aren't obligated to do so).

Next steps