“We will be launching in January the GrowRight program along with the new deal registration bonus,” DiPasquale said.
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The GrowRight channel program has been a boon for Avaya in the U.S. as it has been able to double the amount of products sold by the solution providers in each of the last two years. Avaya’s indirect business has subsequently grown to 76 per cent overall, which is a 30 per cent increase from just four years ago. And, revenue from Avaya strategic products has grown 100 per cent all through channel partners who have taken advantage of the GrowRight program.
The GrowRight program pays solution providers 20 per cent back every quarter on new or strategic product sales. Avaya senior director of global channel programs and go-to-market strategies, Barat Dickson said that the company will be making major products eligible for GrowRight include RADvision, IP Office and other apps and conferencing products.
Avaya channel chief Tom Mitchell said GrowRight is a program that takes a stimulous approach for the market. “GrowRight has helped the channel close deals faster than before because of that big incentive,” he said.
Avaya also increased investment in its deal registration program. The program will continue to pay out 12 per cent margins, but will now have an up to 17 per cent bonus off of list price. DiPasquale said that up to 17 per cent bonus will be for new customer wins and strategic product sales.
On top of that Avaya will pay out that bonus on RADvision and IP Office producs. Avaya will also give out 20 per cent margins on heritage NES data products through the deal registration program. According to Dickman, this incentive has been tripled from 2011.
John DeLozier, senior vice president of sales and marketing for Arrow S3 called the new channel margin incentives “amazing.” DeLozier used to hold the same position at solution provider Cross Telecom. Cross Telecom was acquired by value added distributor Arrow in 2011 and then merged with Shared Technologies to create Arrow S3.
DeLozier added that the transformation of Avaya’s channel has breath new life into the company. “The old way Avaya was doing incentives was broken and as a channel partner all incentives are never enough. But now Avaya has put accountability into the program and they are no longer just writing cheques. They want to see a business plan and lets face it some partners are not here because of that.”
Avaya also introduced a new distribution lead generation program. The goal in this program is to produce 10,000 new prospects, Dickman said.
He added that the solution providers should consider changing compensation models for its sales teams to take advantage of these new margin incentives announced at this conference.