Networking vendorD-Link Systems Inc. has made significant changes to its Value in Partnership (VIP) program to be more competitive in the marketplace.
Steve Ryan became the company’s director of North America channel programs last November. Since then, he’s been working to improve the VIP program to make it more “channel-friendly,” he says.
One major change D-Link has made to its existing Deal Registration program has been switching its partners’ discount to the front end. Before, partners would make purchases at the list price, then submit a claim to receive their discount, but now the discounts are up front.
“This particular change was entirely off of partner feedback,” Ryan says. “The back end process was a little painful for partners,” he says.
The discounts are now based on the deal’s size – six per cent off list price for deals between $5,000 and $20,000 and for deals over $20,000, partners receive a 10 per cent discount.
The other “enhancements” to the partner program include redefining the Silver and Gold statuses to be specific to switching and wireless products. “I wanted to define to the market what ‘Silver’ meant,” Ryan says. “We looked at it and realized it wasn’t as clear as it could be,” he says.
Previously, partners could choose to be trained in wireless, switching, security, storage or IP surveillance. Now, partners can add “Technology Specializations” in the other areas to differentiate themselves, but there is a greater standard for what “Silver” or “Gold” means.
“That change was more around us wanting to clarify who the most appropriate partner is for,” Ryan says. That makes doing business with D-Link that much simpler, he says.
D-Link is also offering discounts for partners who sell to the public sector, which Ryan says is probably the most competitive market. If a partner is selling to municipal governments, school boards, non-profit organizations or other public sector clients, they can receive a five per cent discount up front.
While the changes to the program are important ones, D-Link still faces significant competition from larger companies. “All these things are things that pretty much everybody has these days,” Ryan says. “Our goal is to make it easier,” he says.
“A lot of manufacturers treat training as a profit centre,” Ryan says. “A huge benefit to partners is our online no charge training,” he says. The self-study requirements and exam to become a D-Link partner are all free.
“Most of our competitors have a revenue requirement,” he adds. “For us, we have a very low bar to advance.”
Silver and gold members are also eligible for D-Link’s Bounty Program. If the partner loses out to a competitor but meets certain criteria to prove they made a solid effort, they will receive three per cent of the list price.
But because of D-Link’s policy of working closely with partners, Ryan is confident they won’t lose out often. “When we come in and work with the partner, we almost never lose,” Ryan says.
“Because it’s fairly new and they’re still learning, there’s a lot more of a personal touch than you see with companies like Cisco,” says Todd Hanna, CEO of British Columbia-based reseller Protocol Technologies. “I think they’re trying to evolve it a little bit,” he says.
“They seem to have a desire to continue to grow,” Hanna says, but he remains confident that he won’t lose the “personal touch” with D-Link, even if the company expands quickly. “My guess and expectation is that it will continue,” he says.
