GitLab's journey with Google Cloud Marketplace reveals a critical insight that many ISVs miss – the non-obvious influence of resellers in the marketplace ecosystem.

The Hidden Partner Challenge

Before implementing Google's Marketplace Channel Private Offers (MCPO) program in February 2025, GitLab faced a significant complexity:

200+ deals in the last 2 years were impacted by "hidden partners" – resellers who controlled customer billing IDs without GitLab's knowledge.

This created unexpected margin negotiations and deal delays. Gitlab was already in the Scaling stage of its marketplace maturity but needed to optimize its partner management.

David and his team took a strategic approach:

1. Developed a structured rate card with distinct partner categories (Authorized Partners, Hidden Partners, True Co-sell Partners) with clear negotiation ranges based on partner value contribution

2. Implemented a verification process requiring early identification of Cloud Billing ID ownership to prevent surprises late in the sales cycle

3. Created a comprehensive documentation and training program for their sales teams to properly identify, tag, and engage with resell partners

4. Established a clear support structure with dedicated Slack channels for assistance

5. Streamlined their Quote-to-Cash process to accommodate the new MCPO requirements while maintaining margin control

The MCPO implementation has provided much-needed structure to their partner margin management.

By categorizing partners and setting clear negotiation ranges, GitLab has:

• Protected NetARR while maintaining strong partner relationships

• Greater visibility into the procurement process

“Our sales teams now have greater visibility into the procurement process, resulting in more predictable deal closures and improved customer experiences.” highlights David

The Key Insight

The prevalence of hidden partners controlling customer billing IDs was a revelation – something neither GitLab nor their customers fully understood until GCP MCPO launched.

This highlighted the critical importance of early billing ID verification as the foundation for successful marketplace transactions.

GitLab continues refining their MCPO strategy in 2025, with focus on stronger co-sell motions with true value-add partners now that they have a framework for recognizing and rewarding contributions.