The concept of applying an annual licensing fee for an accounting software package as opposed to an off-the-shelf or outright purchase from retailers or dealers is a highly effective platform from which to provide end-users with a total solution.
Accounting and payroll software house Brilliant Business Systems, a member of the JSE-listed Softline Limited group, introduced annual licensing for its Brilliant Accounting for Windows package in 1998.
"It was a highly successful move," says Brilliant sales and marketing director Pete Whalley. "While annual licensing initially caused some controversy, it has been extremely successful because it has built a solid platform from which we add real value to the benefit of our end-users.
"That value is realised in quick, problem-free on-site installation, free software updates and upgrades, meaningful and effective telephonic troubleshooting and support services, as well as the Brilliant Total Solution guarantee on every Brilliant product we sell."
Whalley adds that all new users receive a full guarantee that they will be provided with a complete accounting solution for their business, with support and upgrades at no additional cost: "Gone are the days of selling boxes and standing back. Today`s market requires a total solution. End-users have the right to be 100% comfortable with their accounting software and this can only be achieved by thorough basic training, ongoing support and upgrades."
Dedicated distribution and support services are also critical to securing end-user satisfaction, particularly with accounting and financial software. For this reason, Whalley says Brilliant streamlines its approach to resellers and dealers.
"We have two types of resellers, the dealer and the VASP (value added service provider). The dealer is a hardware or software dealer who simply refers a client with an accounting need to us. With this referral the dealer knows that the client will receive a full accounting needs analysis followed by installation, training, upgrades and support as part of the Brilliant package. The dealer then receives 20% of the annual licence cost as a one-off referral fee," says Whalley.
All dealers are registered and their rebates are tracked through a tried and tested database and administration process to ensure quick payment.
The VASP reseller receives 33% of the fee for every user that signs an annual license agreement and a further 33% for each renewal to a maximum of three years.
In return, the VASP provides the analysis for the client, as well as first-line telephonic support. The VASP may also have the opportunity to provide stationery, additional specialised training such as report writing, and add-on module sales.
Brilliant provides technical workshops and product training sessions to VASPs and new VASPS are supported by a comprehensive, customised three-day "train-the-trainer" course.
Other advantages over conventional dealer models, according to Whalley, are the fact that Brilliant does not expect dealers to purchase each Brilliant Accounting for Windows package. These are provided free to eliminate the burden of inventory with the proviso that the dealer is formally registered.
Brilliant has also noted from specific research that dealers and VASPs don`t want to have to struggle with "miles of documentation and other red tape". What they do need is simple structures, strong incentives and a lot of support and training.
The company has 300 VASPs on its books and more than 800 dealers registered for QuickBooks.
"Our goal is to ensure that every client using Brilliant software is totally happy with the product. We rely on our channel partners to determine client needs and service those needs to complete satisfaction. Integral in this arrangement is our dedication to ensuring that our VASPs and dealers are continuously trained to enhance their technical and product-specific knowledge," says Whalley.
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