As of Q1 2024, Gem has entered into a co-selling agreement with PH Creative, also know as Happy Dance. Happy Dance provides bespoke ENT-level quality career sites for customers around the world. They offer a complete suite of services for customers that includes the development and hosting of career sites, along with ongoing support. You can see their webpage here.
What does Happy Dance sell?
Happy Dance offers customers a full careers site platform, with career site design, implementation, and hosting at the core of their offerings. They have a number of case studies available on their site if you want to review their past work.
Through the agreement with Gem, they are going to offer three levels of career site; Excitement (a basic career site with minimal customization) priced at $24k/year, Joy (a more advanced career site) priced at $61k/year, and Pride (a completely custom career site) priced at $90k/year. They also offer a number of add-ons including content generation, multilingual functionality, and SEO services. You can see the full suite of services that will be available to Gem customers and the associated pricing here, but Gem will not be responsible for scoping or negotiating pricing for their services.
What is a co-selling agreement?
This is a co-selling agreement, as opposed to a reselling agreement. In a reselling agreement, Gem would be fully responsible for representing and contracting for the Happy Dance services, and they would simply do the work based on what we sold to our customers. In a co-selling agreement, Gem will still own the customer relationship but when it makes sense to add the Happy Dance services to one of our contracts, we will facilitate the Happy Dance team engaging with the customer directly. Gem still handles all of the Order Forms and MSAs, but Happy Dance will work with the customer to build a package of services that meets their needs and we’ll add the resulting Statement of Work to our contract with the customer. Each deal will also result in a Letter of Engagement between Happy Dance and Gem, a sample of which is attached.
What is the revenue arrangement with Happy Dance?
Happy Dance is responsible for the pricing of their services, and then that cost is added as a line item to our Order Form as Gem Career Site Services and the Statement of Work from Happy Dance is included as an addendum to the agreement. Attached to this article is a sample Order Form with the Happy Dance addendum.
Gem has a revenue sharing arrangement in place with Happy Dance wherein we will retain 15% of the list price for any services they sell to our customers. This 15% is the entirety of what we, as Gem, will recognize as ARR for the Career Site Services line item on the contract. Any discounting that is applied to other line items on the Order Form SHOULD NOT be applied to the Career Site Services line item.
How can GTM pitch the Happy Dance services?
Marketing/PMM have already created a pitch deck that you can use with your customers that summarizes the relationship between Gem and Happy Dance, and why a great career site is a key recruiting tool for your customers.
How does the Career Site Services impact quota and commissions for GTM?
Even though Gem is only retaining and counting 15% of the Career Site Services line item as ARR, commissions for GTM will be paid out on the entire line item at a flat 10% rate. However, accelerators will not apply to this line item because of the revenue arrangement with Happy Dance. The Career Site Services line item will also not retire quota for GTM reps.
What is the post-sale experience going to look like for Gem customers?
After the deal is signed, Gem customers will work directly with the Happy Dance team to build and deploy their career site. Gem will not be involved in the development or support for the career sites, so any questions from Gem customers will go, or be directed to, the Happy Dance team directly via their support portal.
What does this mean for the Gem Career Sites product?
As a result of this partnership, Gem will stop selling our own Career Sites product immediately. For the few existing customers that have purchased that product, we will continue to support their current deployment, but ideally we would transition them to a Happy Dance career site at their next renewal.
- What does Happy Dance sell?
- What is a co-selling agreement?
- What is the revenue arrangement with Happy Dance?
- How can GTM pitch the Happy Dance services?
- How does the Career Site Services impact quota and commissions for GTM?
- What is the post-sale experience going to look like for Gem customers?
- What does this mean for the Gem Career Sites product?