NetSuite has introduced a new channel sales program, the NetSuite SP100 Program, through which it will pay partners 100 percent margin on the first year's sales value of a new customer subscription, then 10 percent on renewals.
"The company's existing revenue-sharing model -- which remains in place -- pays out 50 percent margins on a first-year subscription sale, with 30 percent for annual renewals," writes Channel Insider's Carolyn April. "Craig West, vice president of channel sales at NetSuite, says the incentive is aimed at helping the channel overcome some of its reticence about the cloud-computing business model by answering the fundamental question on everybody's mind: How do I make money off this?"
"NetSuite's SaaS-based software spans CRM, ERP, e-commerce and inventory solutions, and they compete head-to-head with the likes of Salesforce.com and Microsoft," April writes.
"With this new program, NetSuite takes dead aim at the partner networks established by competitors including Microsoft, Sage, and SAP, who have been irresponsibly slow to innovate new applications that take advantage of cloud economics and productivity," says NetSuite CEO Zach Nelson. "The market for cloud computing is surging, but the ERP dinosaurs have nothing to offer their loyal partners. NetSuite is here to protect their futures."
Click on the following to read the Channel Insider article: NetSuite Dangles the Ultimate Carrot: Cash