15% under ISVforce. 25% under OEM. Different markets. Different access to core CRM objects. Different sales motions. Most SaaS extension apps are ISVforce. OEM only applies if your buyer doesn't already have Salesforce.
TL;DR: ISVforce (15% revenue share) is for apps sold to existing Salesforce customers. OEM (25%, negotiable) embeds Salesforce licenses to reach net-new customers and restricts access to core CRM objects (Salesforce ISVforce Guide). Most extension apps use ISVforce.
What actually differs
Both are ISV models for distributing on the AppExchange. They target different buyers. ISVforce assumes your customer already pays Salesforce for licenses, so your app simply extends their org and Salesforce takes a 15% revenue share. OEM (sometimes called the embedded model) bundles Salesforce platform licenses into your product, so you can sell to customers who don't have Salesforce at all, and Salesforce takes a higher 25% share in return (Salesforce ISVforce Guide).
| Dimension | ISVforce | OEM |
|---|---|---|
| Revenue share to Salesforce | 15% of net revenue | 25% of net revenue (negotiable) |
| Customer needs own Salesforce license? | Yes | No, embedded license |
| Target market | Existing Salesforce customers | Net-new customers |
| Core CRM objects (Lead, Opportunity, Case) | Full access | Restricted |
| Customer aware of Salesforce? | Yes | Often not |
When to choose ISVforce
Choose ISVforce when your buyers already use Salesforce and your app extends their existing org. Covers most B2B SaaS extension products. You pay the lower 15% share and get full access to core CRM objects like Leads, Opportunities, and Cases. The default for apps that sync data into or enhance an existing Salesforce instance.
When to choose OEM
Choose OEM when your product needs to reach customers who don't have Salesforce, by embedding the platform invisibly underneath your app. You accept the higher 25% share and restricted access to core CRM objects in exchange for selling to a net-new market. OEM suits products built on the Salesforce platform that are sold as standalone software.
Most SaaS companies I work with are ISVforce, because their buyers already live in Salesforce. OEM is the right call only when you genuinely need to sell to non-Salesforce customers. The restricted CRM-object access often surprises teams who pick it without checking.
What is a Salesforce OEM partner?
An OEM partner embeds the Salesforce platform inside their own product and sells it under their own brand. The end customer buys your application and never needs a Salesforce licence of their own, because the platform licence is bundled into what you sell them. They may not even know Salesforce is underneath.
That is the structural difference from ISVforce. An ISVforce app installs into a Salesforce org the customer already pays for, and it extends that org. An OEM app is the whole product, and Salesforce is the engine you licensed to build it on.
| ISVforce | OEM (embedded) | |
|---|---|---|
| Who owns the Salesforce licence | The customer, already | You, bundled into your price |
| Does the customer need Salesforce | Yes, it is a prerequisite | No, and they may never see the brand |
| What you are selling | An extension to their CRM | A standalone product |
| Revenue share to Salesforce | 15% of net subscription revenue | 25% of net revenue |
| Who your buyer is | Existing Salesforce customers | Anyone in your market |
| Where you are discovered | AppExchange, inside the ecosystem | Your own funnel, like any SaaS |
The higher OEM rate is the price of a much larger addressable market. ISVforce keeps more margin per deal but caps you at companies that already run Salesforce. OEM costs 10 more points and removes that ceiling entirely.
When an OEM partnership is the wrong call
If your buyers already run Salesforce, OEM is strictly worse: you would pay 25% to resell a platform your customers are separately paying for, and you would give up AppExchange as a discovery channel. OEM earns its rate only when the customer genuinely would not have bought Salesforce otherwise.
The second trap is vertical products that look like standalone apps but sell into Salesforce-heavy industries. Check where your last twenty deals actually came from before you assume your market is Salesforce-free.
How revenue share affects your pricing
The model you pick changes your unit economics. A 15% versus 25% share is a meaningful margin difference at scale. OEM's higher rate is the price of reaching customers Salesforce wouldn't otherwise touch. Both rates are starting points. High-volume partners sometimes negotiate tiered terms. See how the AppExchange revenue share works for the full picture.
Frequently Asked Questions
What is the difference between Salesforce ISV and OEM?
ISVforce sells to customers who already own Salesforce licenses and pays a 15% revenue share. OEM embeds Salesforce licenses to reach net-new customers, pays a 25% share, and restricts access to core CRM objects (Salesforce ISVforce Guide).
Is ISVforce or OEM cheaper?
ISVforce has the lower revenue share at 15% versus OEM's 25%. OEM lets you sell to customers who don't have Salesforce, so the higher share buys access to a market ISVforce can't reach. The right choice depends on your buyers.
Can OEM apps access Leads and Opportunities?
OEM apps have restricted access to core CRM objects like Leads, Opportunities, and Cases, because they embed a limited platform license. ISVforce apps, sold to full Salesforce customers, have full access to those objects.
Which model should most SaaS companies use?
Most use ISVforce, because their buyers already use Salesforce and the app extends an existing org at the lower 15% share. OEM is for products that have to sell to net-new, non-Salesforce customers.
Key takeaway
Salesforce ISVforce and OEM are both ISV distribution models. ISVforce (15% revenue share) sells to customers who already own Salesforce licenses with full CRM-object access. OEM (25%, negotiable) embeds Salesforce licenses to reach net-new customers but restricts core CRM objects. Most extension apps use ISVforce. Appnigma AI builds the managed package for either model.
About the author. Sunny Chauhan is the founder and CEO of Appnigma AI, a done-for-you engineering service that builds Salesforce AppExchange-ready managed packages. He advises SaaS teams on choosing between the ISVforce and OEM models.
Related Articles
- How does the AppExchange revenue share work
- What is a Salesforce ISV
- Salesforce ISV partner program and how to join
- Salesforce app development cost
Sources
- Salesforce ISVforce Guide, AppExchange Checkout revenue share
- Salesforce Trailhead, contractual models (ISVforce vs OEM)
- Salesforce partner negotiation references (15% vs 25% PNR)
Which one are you actually evaluating right now?
