Commitment to partner-focused strategies: bringing renewals to the marketplace

Remember, Microsoft offers a 50% reduced agency fee for renewals. This counts for customer opportunities that originated both on and off the marketplace. Off marketplace renewals help bring new business to the marketplace.  

We’ve created a simple experience for partners to self-attest to the renewal status of a private offer during private offer or multiparty private offer setup (pictured below). By attesting that the deal is a renewal, all transactions against the private offer will automatically receive the 50% discounted agency fee throughout the entire term of the private offer. 

The reduced agency fee for renewals offers a seamless way to introduce new customers to the marketplace. By adopting the marketplace, partners can co-sell with Microsoft for larger deals. Partners consistently tell us that deals are more substantial when processed through the marketplace rather than outside of marketplace, due to Microsoft seller engagement and the Microsoft Azure Consumption Commitment (MACC) customer benefit.  

Since we announced the renewal fee discount in October 2024, approximately 50% of renewals are new marketplace customers, helping partners create new and larger customer opportunities and building momentum with Microsoft sellers. 

With a promise to be partner-focused, Microsoft is committed to maintaining a simple and transparent fee structure:  

• 3% standard fee for transactions across all marketplace offer types. 

• 50% reduced agency fee for customer renewals via private offer. 

• Customers contribute 100% of all marketplace purchases on Azure IP co-sell offers towards their Microsoft Azure Consumption Commitment (MACC), with no limit. 

As the fiscal year-end approaches, use renewals as a lever to help to close marketplace deals. Remember, private offers must be purchased by the end of May to count towards fiscal year 2025 (July 1, 2025 - June 30, 2026). Bringing renewals to the marketplace is a strategic move that gives customers the benefits of purchasing through the marketplace, while helping you with new co-sell opportunities. 

Learn more about the 50% discounted agency fee for customer renewals.