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Master Agent Channel Strategy Focuses Heavily on Reward
The carrot and the stick is a well-known practice in terms of influencing others; it refers to the practice of using rewards and punishments, both clearly visible, to attempt to drive desired behavior. For Broadvoice, its strategy looks like a garden Peter Rabbit could only dream about as it's focused heavily on sales incentives as part of its channel strategy. A report from CDN took a look at said strategy and how it uses sales incentives to drive business.
Broadvoice's partner program is just two years old, but the company is expecting quite a bit. It's putting a lot of energy behind it, and looking to make it a major focus for sales efforts. Broadvoice is offering some hefty bonuses alongside recurring revenue commissions to draw more master agents, value-added resellers (VARs) and more to the operation.
Those who sell cloud private branch exchange (PBX (News - Alert)) systems in the second quarter qualify for a bonus that represents as much as four times the monthly recurring revenue in one payment. Other options allow for an upfront payment that doubles revenue, and offers a free HD voice IP phone per voice seat, representing a value of about $120 per seat.
Meanwhile, incentives for session initiation protocol (SIP) trunking sales allow for double recurring revenue available as an upfront payment for SIP packages, which range from the small-to-midsize to the fully unlimited. All partners are eligible for these benefits, so there's clear reason to start that little extra push.
This represents a flexibility that should work well for partners, Broadvoice's CEO Jim Murphy noted, and helps make sure that the partners are getting the best value out of the incentive programs available. Better yet, master agent Sandler Partners noted that Broadvoice does deliver that support well, citing its “underlying core commitment to take care of customers and agents” as a main cause of its growth.
Sandler here notes a key point. It's great to offer extra bonuses, but it's all the more vital to have a program in place that takes care of the customer. After all, a bonus today is great, but just how valuable is that bonus if it means the entire company shuts down tomorrow? If the product is sub-standard, and its after-sales service likewise, how long before the buyer shuts the whole process down and never buys from that master agent again? A business with great support for the agent and customer, meanwhile, can deliver a better value, and make that bonus seem more like what it is: a bonus.
With channel sales accounting for around 75 percent of all of Broadvoice's revenue, cultivating the master agent experience will be vital to its continued growth. With what Broadvoice has on the table, though, it's clearly burned the sticks and is harvesting carrots like no tomorrow to help drive sales.
Edited by Rory J. Thompson