AMD launches incentive program, distributor track

A year after AMD Inc.(NYSE: AMD) launched its AMD Fusion Partner Program, the vendor is tweaking the program with the addition of a distributor track and an inventive rewards program for its entry-level partners.

Launched one year ago, Fusion brought together four previously separate programs for solution providers, channel providers, alliance partners and ATI partners under one program umbrella. Bahr Mahony, director of worldwide channel marketing for AMD, said the Elite tier of the program has grown by 56 per cent and commercial Elite partners expanded by 32 per cent in the third quarter alone.

“The program has been going really well and we continue to expand the program,” said Mahony. “We’re opening a new tier for commercial systems partners, the premiere tier, and in Q4 we’ll see the number of commercial systems partners increase pretty dramatically.”

Also, 66 per cent more partners are selling the full AMD value proposition: CPU, GPU and motherboard.

“That’s a real benefit not only for AMD, but for our partners,” said Mahony. “They’re able to yield more revenue and margin by selling the complete portfolio of products from AMD.”

Among the new initiatives AMD is announcing today is a new distributor track for AMD’s channel providers, system distributors and master distributors. Previously, Mahony said AMD had separate distribution agreements with each distribution partner. The new track will bring some uniformity to the relationships.

“We’ve tiered the partners within this track based on their total engagement with AMD across all product lines,” said Mahony. “We’ve optimized the investment track, and there’s additional funding for systems distributors which we haven’t had before. Our goal is to make easier for system distributors to market and sell AMD-based PCs.”

As well, in exchange for the funding support, distributors will provide AMD with sales-out data.

Also new is the AMD Rewards Program. It’s a loyalty program designed to create demand for AMD-based solutions, build partner loyalty, and drive channel sales growth. As Elite and Premier partners already get direct support from AMD, Mahony said this program is aimed at the entry-level Select tier of AMD partners that purchase through distribution.

Partners earn points for various activities, such as training, learning more about AMD products, event participation and, of course, sales. The points can be redeemed for a variety of prizes from a reward catalogue with everything from televisions to barbeques.

“Thus far we’ve piloted this program in the U.S., Canada and Brazil through our distribution partners and we’ve received very good feedback,” said Mahony. “We’re confident it will lead to further sales of our products through our distribution partners.”

Mahony added AMD will continue to invest in and expand its partner program, as it has over the last year.

“Channel partners are very important to us. During the recession, while others were cutting back on channel activities we introduced the program and doubled-down on the channel,” said Mahony. “We have no plans to regress from that. We’re going to continue moving forward.”

Follow Jeff Jedras on Twitter: @JeffJedrasCDN.

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Jim Love, Chief Content Officer, IT World Canada

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Jeff Jedras
Jeff Jedras
A veteran technology and business journalist, Jeff Jedras began his career in technology journalism in the late 1990s, covering the booming (and later busting) Ottawa technology sector for Silicon Valley North and the Ottawa Business Journal, as well as everything from municipal politics to real estate. He later covered the technology scene in Vancouver before joining IT World Canada in Toronto in 2005, covering enterprise IT for ComputerWorld Canada. He would go on to cover the channel as an assistant editor with CDN. His writing has appeared in the Vancouver Sun, the Ottawa Citizen and a wide range of industry trade publications.
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