McAfee Inc. has announced changes to its channel program, enabling channel partners that register and win new deals to receive an additional 25% margin, on top of the standard margin they earn through their distributor. The security vendor has also strengthened its resolve to protect margins for McAfee resellers
McAfee, a wholly owned subsidiary of Intel Corp., revealed the updates to its worldwide channel partner program on August 15, 2011, saying the move is the largest financial investment it has ever made in the channel.
We are showing our partners if they invest in an extensive sales cycle, no one is going to swoop in and take it away after they’ve worked so hard.
With the McAfee Enhanced Deal Registration program, which is available immediately to all McAfee partners worldwide, resellers will enter details about their potential sales opportunities into the McAfee Insight partner portal. When the McAfee reseller locks up the sale, McAfee will pay the reseller an extra margin on top of the standard margin the reseller earns from a McAfee authorized distributor. The extra margin is 25% for new deals sold by McAfee resellers at the Elite, Premier and Select levels, or 10% for new deals sold by McAfee Associate partners. For upgrades to existing McAfee product suites, the extra margin is 10% for all partners.
McAfee has directed this Enhanced Deal Registration program to resellers working with customers in market segments McAfee calls Commercial and Enterprise. Last year, McAfee made a similar move for resellers working with SMB customers.
McAfee is redoubling efforts to encourage its partners to register all potential deals in order to protect the deal (and the margin) from being plundered by competing resellers.
“We are showing our partners if they invest in an extensive sales cycle, no one is going to swoop in and take it away after they’ve worked so hard,” said Alex Thurber, senior vice president of worldwide channel operations for Santa Clara, Calif.-based McAfee.
To make deal registration more appealing, McAfee has set SLAs within the company to respond to registration applications more quickly. The SLAs vary depending on the size of the deal, but may be as soon as two days for deals under $50,000.
If, despite registering a deal, another reseller lands the sale instead of the registered reseller, McAfee will pay the registered reseller a “lost deal fee.” According to Thurber, McAfee has paid lost deal fees in the past, but is working harder to communicate this benefit throughout its partner community.