IBM introduces value-based compensation

IBM has quietly introduced a new channel program to its Australian and New Zealand markets at a time when most resellers are preoccupied with the GST.

Launched July 1 and dubbed as a Value-Based Compensation program for the IBM software channel, the new margin structure will divide earnings across a number of different points of contact that led to a sale rather than focussing on fulfilment.

According to IBM Software group alliances and channel development manager for Australia and New Zealand. Brod Brennan, the new system is designed to recognise all the different elements that go into closing a sale including presale consultancy style services.

"We recognise that many of the people who influence the decision to buy IMB offerings are often left out of the margin equation. Through the new channel program consultants and partners can register the opportunities with us, and they will be dually rewarded if the opportunity results in a sale. As long as they have professional certification we will pay them a rebate upon fulfilment," Brennan said.

The new margin structure will spread the financial rewards associated with IBM offerings across all these different levels and assist with IBM partners to drive their offerings into mid-range markets.

"The predicted growth in mid-markets is phenomenal, and we want our channel to be a part of that. The new program integrates incentives to sell into mid-range markets along with support services provided by IBM that create a real value add proposition which resellers can use to strengthen the offerings," Brennan told ARN.

While IBM is promoting value-based compensation as channel friendly, the new margin structure has seen fulfilment compensation fall dramatically, and has come as a shock to some resellers.

Brennan has moved to reassure IBM channel partners that the new plan will provide them with the opportunity to build their businesses into new markets.

IBM suggests that resellers wishing to find out more information about the new program should visit www.ibm.com/software/partnerweb/ap

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