Private Labeling Driving Big Margins
Intermedia Chief Revenue Officer Eric Martorano says the company's Unite UCaaS private-label product for partners is driving 25 percent to 50 percent margins for the channel.
"About 70 percent of our partners private-label," said Martorano in an interview at the XChange Solution Provider 2018 conference in Orlando, Fla. "Partners can set their own margin. There is not another vendor out there in our market that can say that. What value are you going to add? Our average partner margin ranges between 25-30 percent, with some partners as high as 50 percent."
That margin opportunity is in sharp contrast to the agent commission model provided by many vendors, said Martorano.
"Nobody is making any money reselling Office 365, for example," said Martorano, a former top Microsoft channel executive. "We learned that ourselves. There is money to be made in adding value on top of it. There is no money to be made in being a reseller of cloud services for things like Office 365. When you can take advantage of a private-label model like we offer, you are not bound by list price. You can determine what the market will bear. A lot of our partners are wrapping services around UCaaS and it is all under their brand.