The market is huge (local businesses). They can sell (and deliver on their pitch) at a higher price point (~$130/month per user). Potential is tough, but it is reasonable to believe that, at the current rate, it could be generating $1M+/yr in a year or two. As far as resources, they are a small company, but have access to a sales force that is very inexpensive and can close on cold-calls, both in the US and internationally.

I believe they are looking to partner because they either can't afford, or don't want to pay upfront for development. They are non-technical for the most part and need consulting/advice in that regard.