Limited Agent Appeal

There are plenty of companies testing the waters with programs to address the influencer constituency, most recently Citrix Systems, which introduced its Solution Advisor Rewards Program last month. The initiative pays margins of between 5 percent and 10 percent when a partner influences volume-license deals larger than $10,000. The new program is seen, in part, as an attempt to level the playing field between smaller SMB-focused VARs and larger volume-focused resellers. In that sense, it is very timely indeed, and Citrix should be commended for coming out in support of the little guy.

But vendor executives in charge of developing or maintaining similar influencer programs need to remember that most solution providers creating demand for their products usually aren't selling just one vendor's products, they are selling solutions that include products from many different vendors. That context must be considered when figuring out how to reward certain influencers.

Another interesting trend to ponder: A couple of years ago, many solution providers, especially in the hardware world, became more willing to act as agents because business was so tough and they needed every point of margin they could eke out for a product. In so doing, they were willing to give up the practice of taking title to the product.

Not so in early 2004. The pendulum has swung back in the opposite direction. When I was reporting our Jan. 12 cover story on sourcing several weeks ago, a vast majority of the integrators, VARs and resellers I interviewed told me that in this age of solutions they prefer to take title to the products they are using to address their customers' IT needs. Their reason: so they can integrate and test how everything works together before handing the solution over to their client. By the way, several other solution providers I spoke with last week, who were classic influencers at the start of their business existence, have now moved in this direction.

What's your take on influencer programs? HEATHER CLANCY, Editor at CRN, appreciates letters and feedback at [email protected].