IBM and Lotus Development have announced a restructuring of their Business Partner compensation plan for PC and UNIX workstation software.
The new plan shifts compensation from eligible Business Partners who add value in e-business solution sales, targeting instead Midmarket and small businesses. The result is increased profitability and competitiveness of value-oriented partners.
IBM and Lotus` "Value Compensation Plan" actively assists Business Partners in building their e-business revenue through a combination of Business Partner rebates, fees, discounts, business development funds, and special-emphasis incentives.
"This plan will go a long way towards helping focus our Partners` strategic attention on Lotus` market goals for Messaging/Collaboration, Knowledge Management and Distributed Learning this year," says Steve Dunbar, country marketing and IBM/Lotus partner sales manager. In addition, IBM and Lotus announced Passport Advantage Online, a web-based tool to further streamline business processes for Business Partners and customers. Passport Advantage is IBM`s PC and UNIX* workstation software volume licensing program.
Passport Advantage Online will simplify subscription renewals, resulting in increased renewal close rates, and lower overall transaction costs. "Partners will now see tangible benefits for building additional capability, which will inevitably help them build competitive advantage."says Dunbar.
All IBM and Lotus Business Partners who meet eligibility criteria may participate in the Value Compensation Plan. Highlights of the Plan, effective for PC and UNIX workstation software sales on or after July 1,2000, include:
Changes in existing rebates to reward valued-based activities and reduce emphasis on fulfillment transactions. These include Performance Rebates for achieving revenue growth targets and Value Rebates for distributors who make investments to drive e-business solution sales through resellers.
A new Market Growth rebate as additional compensation to Business Partners who sell workstation software to Midmarket and small businesses. IBM and Lotus partners who implement an agreed-to business plan for the Midmarket are eligible to earn this rebate.
Increased focus on the IBM and Lotus Sales Assistance Program worldwide. This program will include efforts to recruit influencer participation and to expand in more countries.
Reduced available discounts for fulfillment of Passport Advantage orders. This will offset the enhanced rebates to better align the compensation structure and more highly reward Partners that invest in and close Midmarket and small e-business sales.
The Value Compensation Plan is part of major investments worldwide by IBM and Lotus in Business Partner programs. In addition, IBM Global Financing offers Business Partners of all sizes leasing and financing solutions for hardware, software and services acquired from IBM and other vendors.
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