In October of last year, Microsoft reported it would be implementing significant changes to its sales incentives for Microsoft Dynamics channel sales incentives. The new incentive strategy goes into effect this month.
The company is focusing on distinctions between sales of licenses and maintenance, as well as unique rewards and sales incentives for channel partners which will reflect high and low performances.
Jeff Edwards, Director of Channel Strategy for Microsoft Business Solutions, noted that the company is raising the bar. “The goal is to motivate partners by marketing differently with them and treating them differently in the field based on their performance.”
Under the prior design, partners earned revenue based on both licenses and maintenance contracts. Edwards explained, “We want to motivate those separately."
The goal is to have specific sales incentive geared directly to the marketplace in question. Microsoft believes this will promote channel sales in all markets involved.
Over 300,000 businesses utilize Microsoft Dynamics applications and servicing them through channel sales are around 10,000 sales partners.