Sage News and Discussion

I've been reading the Sage Transformation Guide FAQ. Since it appears that if a customer ROR's from one partner to another -- the other partner does not continue receiving commissions. Have Sage effectively shut down any opportunity for partners to merge/combine and have the new entity (acquirer) continue receiving commissions? Based on a strict interpretation it would seem so. Or perhaps separate rules apply for mergers and consolidations. Has anyone asked the question of Sage?

From the FAQ: ""Q. Can a partner select another Sage business partner to refer the sale and implementation of a Sage product for which does the referring partner does not meet the performance criteria? A. Yes. The referral partner will be held to the performance criteria and standards of this initiative. To be eligible, the referring partner must provide the name of the alliance partner to Sage in advance of the sale. Details on this process will be provided shortly.

Thanks Phil - I'm asking about situations where one partner acquires all the customers of another. In it's most simple form I believe this was done as a bulk ROR in the past. If it's done as an ROR in the future -- would the terms of the new program effective 4/2/12 where if a customer ROR's to another VAR that the new VAR does not receive margin on the existing maintenance? Sage might have different merger/acquisition rules -- though they could probably just as easily argue that the rules dictate nobody but the original VAR gets margin. To me this seems like it could potentially be harmful to a customer who needs a local presence -- unless Sage feels they can over time do away with the channel and service most customers locally. Also if my question above about acquiring companies not continuing to receive margin were to be true - that seems like it would put a huge damper on anyone looking to become a Sage partner. Other than consultants with a huge deal pending I cannot imagine many VARS are joining the Sage family these days.

I think they figure if they make our companies worthless they won't need to worry about it.

Phil, Our companies were almost worthless before yesterday. Now, if you Sage exclusive, its now officially worthless unless your idea of a business sale is staying on indefinitely since customer loyalty in most var's is dependent on the entrepreneur. Under this model, what would Shulz Consulting be worth without Wayne Shulz??

Regarding this ROR issue where if a client ROR's from one partner to another, the new partner doesn't get credit/margin on future renewals, is that just specific to clients on the new Subscription pricing model? Or does that apply to all clients across the board?

Is anyone able to confirm or deny Sage's recent positioning regarding ROR's (i.e., Does it apply to just clients on the new Subscription pricing model or all clients across the board - that the new Partner doesn't get credit/margin on future renewals)?

I would imaging @DougDeane would know this answer although this may be part of the program 'modifications' coming that we are hearing about.

Don't know if this is part of the modifications but if so they'll talk about them Tuesday on the call.