Coyote Point Unveils New Channel Program

With the launch of the new program, San Jose, Calif.-based Coyote Point promises partners additional revenue and margin opportunities, along with new lead-registration capabilities, restricted product authorization, new pricing models and reduced competition.

The multitiered program is centered on Coyote Point's new Equalizer GX family of application-acceleration and load-balancing products, the E350GX, E450GX and E650GX, said Jim Puchbauer, Coyote Point's director of channel marketing and development. The new product line, Puchbauer said, didn't fit Coyote Point's original channel model, which was a two-tier distribution model that essentially made resellers order takers and provided little value in selling motion and small margins.

"Now we really have a product we can target to VARs," he said, adding that Coyote Point had had trouble in the past engaging solution providers, despite not having a direct sales model. "We absolutely do not sell direct. We need to have a solid channel model to be a vibrant, growing company."

The new program, Puchbauer said, comprises three discrete tiers of partners, each designed to reward VARs' efforts and commitment, ensuring customers are turning to properly trained and competent solution providers.

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The marquee designation, the Authorized Tier-1 Reseller level, benefits partners who have demonstrated the highest performance in selling, marketing and supporting Coyote Point technology.

Partners are given the ability to buy direct from Coyote Point at Tier-1 prices. They can earn co-op MDF, receive lead registration with margin protection, participate in joint marketing activities, gain priority status for sales lead distribution and take advantage of the opportunity to be included in public relations activities for broader exposure.

The new program also includes authorization, meaning only authorized sellers can access the complete product line, while non-authorized resellers are restricted from selling premier higher revenue Equalizer models, which can help control the MSRP. Authorization, Puchbauer said, reduces competition in the highest revenue selling opportunities, protecting VAR margins and profitability.

"If you are not authorized, not properly trained, you cannot source the 450 or 650 through distribution," he said. "Everyone who can possibly buy anything can't resell it."

Adding lead registration to the program lets solution providers register and protect leads, and qualified resellers can receive added margin on registered Coyote Point sales, rewarding VARs for efforts spent in lead generation and prospecting efforts.

And the new co-op MDF give qualified partners the ability to drive revenue by participating in field-marketing and lead-generation activities while deferring the cost of seeking out new business opportunities.

The program also offers extensive sales and technical support to authorized resellers, including training, support of sales activities with a dedicated sales-support team and full access to Coyote Point's Partner Resource Center Web portal, which includes news and tools to help sell Coyote Point gear.

"We really tried to change the game for us as a company," Puchbauer said. "We are building a well-rounded reseller program that mitigates the channel conflict and is profitable to the reseller."

Ken Fletcher, CEO of Quarterhorse Technology, a New York-based solution provider, said the realignment of Coyote Point's program would help customers know they're buying gear from someone who has the knowledge and competency to work with the solutions and not just someone selling a box.

"It's clearing out the lower-end people and keeping it with people who know what they're doing," he said. "This will promote both you and the product at the same time, giving us more exposure."

The new program, Fletcher said, will help build a stronger relationship between Coyote Point and resellers, which will boost success.

"With the new program, Coyote has become more aggressive about their channel partner profitability and has provided us with some real solid lead-generation opportunities," he said.

Fletcher said it comes down to the question of, "Who do you trust?"

"It says you know what you're doing," he said. "Coyote Point has really done their due diligence to make this work."