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Intelisys Monday introduced a new partner program that helps solution providers ease into the recurring revenue model and overcome the cash flow challenges that come with taking the leap to selling cloud and carrier services.
Intelisys' new Advanced Commissions Program, unveiled Monday at UBM Channel's XChange 2013 event in Washington, D.C., lets Intelisys partners choose how they want to receive commissions on cloud and carrier service deals.
The aim of the program, Intelisys said, is to help solution providers maintain the up-front cash flow they've traditionally relied on to run their business, while still building up a long-term recurring revenue base.
"The biggest challenge for VARs has been how to adopt this recurring revenue idea without crushing the cash flow that they have today. That has been the biggest hurdle that most VARs have when they look at pivoting to a recurring revenue model," said Andrew Pryfogle, senior vice president and general manager, Cloud Services and Complex Bids, at Intelisys."We've been talking with hundreds of VARs around the country and we have been formulating what would be the appropriate way to tackle that challenge for them, and that's what we are announcing at XChange."
The new program, Pryfogle said, is actually a revamped version of an Advanced Commissions Program Intelisys already had in place. Through the traditional program, Intelisys would start paying solution providers monthly residual commissions on a deal as soon as the deal was booked, rather than having partners wait the usual five to six months it often takes for these residuals to be paid out.
Through the new program, however, partners can choose to receive a one-time up-front payment, worth up to 60 percent of the total value of the deal, in lieu of these residual commissions. They also can choose a combination of the two, receiving a smaller up-front payment and smaller residuals.
Intelisys is offering a calculator tool for partners to determine the best model for them, and partners can adjust their payment model on a deal-by-deal basis. "They can adjust those levers between up-front and residuals as they want," Pryfogle said.
Intelisys, Petaluma, Calif., is a master agency that's traditionally partnered and gone to market through telecom agents. But the company also has started to build a reputation in the channel as being a master agency that puts a lot of muscle into helping traditional solution providers embrace the fast-growing cloud computing and carrier services markets Earlier this year, Intelisys introduced its Channel Alignment Program, which pairs solution providers with an Intelisys telecom agent to help add cloud and carrier services to their portfolios with minimal impact on their day-to-day business.