How salesforce.com Manages Its Partner and Referral Program

Michael Fullmore, Salesforce.com

Ed van Siclen, Salesforce.com

Track: Channel and Partner Management

Safe Harbor Statement

“Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements including but not limited to statements regarding our expected future revenue, GAAP diluted earnings per share, expected tax rate, anticipated shares outstanding,and concerning the potential market for our existing service offerings. All of our forward looking statements involve risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.

The risks and uncertainties referred to above include - but are not limited to - risks associated with possible fluctuations in our operating results and cash flows, rate of growth and anticipated revenue run rate, errors, interruptions or delays in our service or our Web hosting, our new business model, our history of operating losses, the possibility that we will not remain profitable, breach of our security measures, the emerging market in which we operate, our relatively limited operating history, our ability to hire, retain and motivate our employees and manage our growth, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, customer and partner acceptance of the AppExchange, successful customer deployment and utilization of our services, unanticipated changes in our effective tax rate, fluctuations in the number of shares outstanding, the price of such shares, foreign currency exchange rates and interest rates.

Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time, including our Form 10-K for the fiscal year ended January 31, 2007. These documents are available on the SEC Filings section of the Investor Information section of our website at www.salesforce.com/investor. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

Business Challenges

MORE

More Revenue from Partners

More Pipeline from Partners

More Leads from Partners

Achieve Results with No New Headcount!

Technology Challenges

Implementing on an existing salesforce.com org

Salesforce.com’s Alliances – Key Challenges

Salesforce.com’s Alliances – Key Challenges, Cont.

Summary of Challenges

Create Low-Touch, No-Touch Scalable Model

Create Business Optics to Track Business Impact

Close Rates

Average Deal Size

Average Sales Duration

Enable a trained ARMY of partners

Substantiate Business Impact to Increase Partner Investment

Our Starting Point

Partnership was like the wild west

Opportunistic and lawless

No real, organized Partner Program

Incredible pressure and minimal resources

Monthly Closes (think about having 12 quarter closes a year!)

No visibility into our channels business

Couldn’t ascertain how Partners/Alliances impacted our business

Lack of Ability or Resources to Scale

Communication, Recruitment, Education/Training

Multi-category Program with Tiered

Benefits/Criteria

AppExchange Partners

Consulting Partners

Referral Partners

Strategic Partners

Technology Partners

Training Partners

Value-Added Resellers

Step One – Deal Registration

Visibility into Business

Reduced Channel Conflict

Closed Loop Lead Management

Their View

My View

One Pipeline!

Step Two – Streamlined Enrollment Process

Step 3 – Partner Enablement

Part 4 – Governance

Project Health

Increased Partner Activity

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100150200250300350400450500

Aug06'

Sep Oct Nov Dec Jan07'

Feb Mar Apr May Jun Jul Aug

Partner Program & Portal Relaunched

NA Regional SI Webinar

New partners, increased portal functionality and the revised partner program are driving a significant increase in partner portal users.

Po

rtal

IDs

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PRM – Results

What were the results?

Over a 9 Month Period….

Grew Global Partner Community by 400%

Grew Lead Count by 218% (YoY)

Grew Pipeline by 290% (YoY)

Improved Partner On-Boarding

Improved Visibility into Partner Impact

Able to adhere to Corporate SOX Compliance Standard

Maintained High Close Rates and Average Deal Size

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2006-Q3 2006-Q4 2007-Q1 2007-Q2 2007-Q3 2007-Q4 2008-Q1 2008-Q2

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Total Partner ‘Sourced’ OpportunitiesT

ota

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PRM Implemented

Imagine it. Learn it. Use it.

How to apply what you’ve learned when you get home

Automate

Centralize

Implemented

Integrate

Result: Improved Partner Intimacy

Michael Fullmore

Techincal Business Operations, ManagerEd van Siclen

VP, Strategic Alliances

QUESTION & ANSWER SESSION

Salesforce.com

Salesforce.com

New Approaches - Content Syndication

Brand Integrity

Consistent Content Structure

Free 30-day Trial Provided by Partners, Directly from the Partner’s Website

Resulting Lead is Routed back to the Partner via the Partner Portal

Partner Develops Lead & Submits as a Referral via Partner Portal

Normal Referral Payouts Apply

Overview of Salesforce SharedVue

Salesforce content embedded within partner website

Proactively Manage Product Messaging &

Positioning

Brand Consistency & Integrity

Free Sign Ups Trials from Partner’s site! Leads Tracked via

PRM

What’s Next – Partner Finder

What’s Next – Partner Finder