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OEM licenses are significantly larger deal sizes than direct to end-user contracts because the licensee is usually pushing out the software to their entire customer base or a large portion of their customer base. One OEM contract can give thousands or tens of thousands of end-users access to the licensor’s software.
This reality influences their go-to-market (GTM) strategy, which relies on a lower overall sales and marketing budget and a higher mix of marketing to sales spending. Customer success is usually staffed by a mix of customer support, sales, and engineering folks contributing some portion of their time to the Cost of Revenue.
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