Security vendor McAfee is shrinking is set of channel programs into one global program in an effort to increase solution provider margins, rebates and sales incentives.
This new initiative is called the Profitability Stack and according to the San Jose, Calif.-based company, it will be aimed at McAfee SecurityAlliance partners with the goal of delivering maximum partner profitability to accelerate sales.The Profitability Stack includes deal registration, incumbency advantage, tiered pricing, teaming plans, rewards and rebates.
Gavin Struthers, McAfee’s worldwide channel chief, said the Profitability Stack is a huge leap forward by setting a new profitability standard in the security industry.
“We will continue to listen to our partners and aggressively evolve our channel programs as part of our relentless pursuit to deliver unprecedented value to them,” he said in a prepared statement.
The strategy behind the Profitability Stack is to enable SecurityAlliance partners to earn additional front-end margin, back-end rebates or sales incentives for new or existing business. Also channel partners who upsell and cross-sell customers consistently will be able to increase their profit margins. For example, inside the deal registration portion of the program has deal protection where a partner can earn up to 25 per cent margins on top of the standard product margin.
The channel can now track earnings potential through a weekly rebate tracking report. McAfee believes this will enable solution providers to make educated business decisions. Also, the Accredited Channel Engineer incentive rebate is now available globally.Pre-sales business or technical value-add activities are also global.
McAfee will also have a rewards section of the Profitability Stack. Partner sales representatives and engineers can earn cash and prizes for selling McAfee. Some of the rewards include $25,000 in quarterly SMB Endpoint Top Performer payouts and $35,000 in Commercial Endpoint Top Performer payouts. Current McAfee rewards participants can now earn up to $500 in referral bonuses for referring their sales colleagues to register and start participating in McAfee rewards.
The Profitability Stack will also feature tiered pricing that recognizes and rewards McAfee Elite and Premier partner’s investment. McAfee will offer partners a chance to earn pricing advantages based on their McAfee SecurityAlliance program level. A new automated pricing process allows distributors to make tiered pricing available to authorized resellers. Additionally, McAfee has introduced discounted (non-standard) tiered pricing worldwide.