Lenovo formally took the wraps off a new SMB Partner Advantage program yesterday at its second annual Accelerate Partner Summit in Las Vegas, which offers new financial incentives to its SMB reseller community.
The program offers direct cash rewards to sales reps at Lenovo resellers who sell Lenovo products and services specifically to SMB organisations, which the company defines as accounts with 1,000 employees or less.
Lenovo’s North American channel chief Chris Frey said the new program pays out cash, directly.
"You register, you sell, you get money," he told partners. "That’s how it’s going to work."
Jay Parker, vice president and general manager of the North America Consumer and SMB unit at Lenovo, said the decision was based on channel partner feedback.
"We did the research and found that the clear answer was that ... I mean, would you rather have a vacuum cleaner or a 100 dollar bill?" Parker said.
When asked if he was concerned Lenovo would cut down on its own margins through the deal, he said "we aren’t in a cost-savings mode. We’re in an investing mode."
The new SMB Partner Advantage program falls under the broader Lenovo SPIFF program, which allows resellers to earn up to $US10,000 ($A10,066) each quarter in cash for selling qualified TopSeller Lenovo systems or services. Partners have the opportunity to earn up to $US70 for each sale made.
Qualified TopSeller systems include a range of Lenovo ThinkStation, ThinkServer, ThinkPad and ThinkCentre brands. Earnings through the new SMB Advantage and broader SPIFF program are accrued monthly. All cash rewards are loaded onto a Lenovo Visa pre-paid card account held by participating reseller sales reps.
Parker said the new program is designed specifically for SMB resellers because it’s a market Lenovo’s internal sales reps don’t reach on their own. All growth in smaller accounts comes almost exclusively from the channel.
"Those channel partners in that room are our sales team," Parker said of the SMB space. "And they need to be incentivised properly to sell."
In addition to the new SMB Advantage program, Lenovo announced this week a series of new ThinkPad, ThinkStation, and ThinkServer products. The latter, it said, will offer partners double the margins they earn on traditional desktop and notebook sales.
Related: Lenovo reveals plans to move beyond PCs.
This article originally appeared at crn.com
Issue: 325 | March 2014
Access CRN's extensive online resources including; email bulletins, community discussions and unique online news.
Processing registration... Please wait.
This process can take up to a minute to complete.
A confirmation email has been sent to your email address - SUPPLIED GOES EMAIL HERE. Please click on the link in the email to verify your email address. You need to verify your email before you can log on to the CRN website or start posting comments on articles.
If you do not receive your confirmation email within the next few minutes, it may be because the email has been captured by a junk mail filter. Please ensure you add the domain '@crn.com.au' to your white-listed senders.