Learn How to Calculate Sales Commissions and Partner Negotiations
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Video: “How To Calculate Commissions and Partner Negotiations”
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We have found that every company struggles with determining their sales partner channel commission structure. Many adopt what seems to be a de-facto ‘standard’ from their sector or what one of the global technology companies use, even when your company’s products-services mix is different and what the partner is gaining is different. These slides outlines Tenego’s methodology that you can use to determine your company’s Standard Partner Commissions, based on what it costs for you to sell your products. ALSO you get will a list of the factors used in partner discussions and negotiations that may increase or decrease these commissions and incentive structure.
Transcript of Learn How to Calculate Sales Commissions and Partner Negotiations
Video:“How To Calculate Commissions and
Partner Negotiations”
Tenego Partnering: Services
MarketResearch
Market SelectionMarket Assessment Market EcoSystem
Competitor Analysis
Vendor Strategy Development
Market EntrySales & Partnering
StrategyPartner Type
Selection
Reseller Strategy Development
Market ExpansionProduct SelectionBusiness Direction
Execution Support
Prospect ListsProspect Analysis
Approach PrepPartner Fit
Advisory Support
Outsourced Execution
Your Alliances TeamPart-time Executives
Work ProgrammeTarget Driven
How To Calculate Commissions and Partner Terms Negotiations
Two Sides: Vendor and ResellerVendor Wants
Someone already travelling the roadReseller Wants
Someone to create/pay for the road
What do you want from a Partner?
Lead Generation Qualification Sales /
ClosingDelivery Support
Direct Sales
Resellers/ Sales Agents…
Referrals
Full Service / OEM / System Integrators…
Sales & Delivery / Complementary Services
Partner Programme: Quinn Essential Financial Software Ltd DEMO
Product: ERP: Financials, Order Processing, Stock Control, CRM, SRM, Business Intelligence/Reporting…Sectors: Wholesalers, Distributors, Manufacturers, Professional Services Companies, Retail, Supply Chain Management CompaniesRegions: Current: Ireland, UK
Target: North America; US and Canada - investigating Netherlands, Australia and other English speaking
Quinn
Typical Deal: Year 1:Lifetime:
Sales Cycle Length: 6 to 12 months€20,000
€100,000€500,000
€150,000€250,000 Licence:€40,000Annual Support: Annual Services:
Services:
Partner Types and Responsibilities:Customer Support
Lead Generation
Qualified Leads
Meeting 1Meeting 2 /
DemoEvaluation
Propose / Close
Implement
Reseller & Implementer:Reseller/Agent:
Commissions, Targets and Incentives:
18% Targets: Year 1 Year 22% 3 67% 31 61 per Quarter
Reseller & Implementer: Licence: On Activity Targets: Propose / Close
On Sales Targets: Qualified Leads18% Targets: Year 1 Year 22% 3 67% 31 61 per Quarter
Reseller/Agent: Licence: On Activity Targets: Propose / Close
On Sales Targets: Qualified Leads
Partner Supports:Training: Sales Training, Solution Training, Implementation Training, Support TrainingSales Materials: Presentations, Brochures, Case Studies, Testimonial Videos, Website ContentSales Support: Joint Roadshows, Joint Webinars, 1-to-1 Sales person support, Reference Site VisitsCooperative Marketing: funding for Events, PR, Direct Marketing and Outbound Call Campaigns, Trade Shows etc
per annum cost€1,500€500
€50,000€10,000
Referrral:
8% Targets: Year 1 Year 21% 14 14
Referral: Licence: On Activity Targets: Meeting 1
1) How Compelling is the Product’s Customer Value Proposition?2) Market Opportunity / Market Conditions3) Brand: New Product or Known Brand4) New Solution Space / Early to Market5) Competition6) Resulting Services Revenue Generated7) Complexity of the Sale / Length of Sales Cycle8) Product Proven Sales Process and Reference Sites9) Clear Qualification Criteria, Lead Gen Materials and Methods10) Strong Partner Sales Support11) Cooperative Marketing Funds and Funded Resources12) What Other Products are funding the Reseller’s Sales Efforts?
12 Arguments to Increase or Decrease %
Software Business Experts
Practical
Results Focussed
International Business
Development
Hands-On Execution Oriented
CONTACT DETAILS:NSC Campus, Mahon, Cork, Ireland
+ Dublin, London & Dubai
Web: www.tenegopartnering.comEmail: [email protected]
www.twitter.com/dkiernanwww.linkedin.com/in/donaghkiernan Donagh Kiernan
Founder & CEO
To Learn More About Sales Commissions and Partner Negotiations
Download the Full Video to see: • Partner Projected Scenarios • The Cost of Your Sales Process • Commission and Targets
Hosted by Donagh Kiernan, Founder and CEO of Tenego Partnering
Or Email: [email protected] http://ie.linkedin.com/in/donaghkiernan
