Sage 100

https://docs.google.com/viewerng/viewer?url=http://mysagesell.com/portal/wp-content/uploads/Sage-NA-Partner-Program-_MM_031319_FINAL-1.pdf&hl=en_US

Sage is absolutely killing their channel...

I thought this had been out for some time? 

And, yes, Sage is taking advantage of the fact that the channel really has no recourse.

For the channel, it's all about making money now on consulting.
And if that model doesn't support their overhead then consulting firms will need to reorganize to a model that does.

It seems the only ERP not following down this path are the relatively new ones and just give them time and as they grow they'll eventually follow suit.

------------------------------
Wayne Schulz - Schulz Consulting - 860-516-8990
------------------------------

Sadly, that's why we picked up a competing product.  We can still make money when we make a new sale, like the "olden days", plus we still have the implementation as well.

------------------------------
Sue Bennett
Jack of All Trades, Master of 1
Bennett/Porter & Associates, Inc.
Tigard OR
503.620.3484
------------------------------

Original Message:
Sent: 04-10-2019 14:50
From: Wayne Schulz
Subject: New Reseller Margins as of May 1st

I thought this had been out for some time?

And, yes, Sage is taking advantage of the fact that the channel really has no recourse.

For the channel, it's all about making money now on consulting.
And if that model doesn't support their overhead then consulting firms will need to reorganize to a model that does.

It seems the only ERP not following down this path are the relatively new ones and just give them time and as they grow they'll eventually follow suit.

------------------------------
Wayne Schulz - Schulz Consulting - 860-516-8990
------------------------------

I know the new model is reality, and I do not understand the reasoning for low or no margin for channel partners, and channel partners need to rely on service revenue to survive.   Is the strategy as simple as "if we take all of the pie for ourselves we will be more profitable."?  If that's the case then channel partners will begin to disappear and publishers will eventually only sell direct to the end user.

If the channel partner gets little or no margin, how do they fund sales and marketing?  By raising the rates for service revenue?  Now sales and marketing are no longer self-sustainable and the consulting team is financing the program.   

Whatever happened to give the partners a piece of the pie so we can put more troops on the ground and increase market share?  You know, sacrifice some margin now for long-term growth.  Is that strategy too old-fashioned?

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------

Original Message:
Sent: 04-10-2019 14:50
From: Wayne Schulz
Subject: New Reseller Margins as of May 1st

I thought this had been out for some time?

And, yes, Sage is taking advantage of the fact that the channel really has no recourse.

For the channel, it's all about making money now on consulting.
And if that model doesn't support their overhead then consulting firms will need to reorganize to a model that does.

It seems the only ERP not following down this path are the relatively new ones and just give them time and as they grow they'll eventually follow suit.

------------------------------
Wayne Schulz - Schulz Consulting - 860-516-8990
------------------------------

With high churn in executive positions, why would they care about long term stability of the company?  It will take time for existing sales efforts to switch to another product which pays better, and by then the short sighted tactic will tick up revenue... executive bonuses will have been "earned"...  The smoking crater left behind is someone else's problem.

------------------------------
Kevin Moyes
Technical Systems Analyst
Munjal White Consulting Co.
Toronto ON
------------------------------

Original Message:
Sent: 04-10-2019 16:25
From: Doug Higgs
Subject: New Reseller Margins as of May 1st

I know the new model is reality, and I do not understand the reasoning for low or no margin for channel partners, and channel partners need to rely on service revenue to survive.   Is the strategy as simple as "if we take all of the pie for ourselves we will be more profitable."?  If that's the case then channel partners will begin to disappear and publishers will eventually only sell direct to the end user.

If the channel partner gets little or no margin, how do they fund sales and marketing?  By raising the rates for service revenue?  Now sales and marketing are no longer self-sustainable and the consulting team is financing the program.

Whatever happened to give the partners a piece of the pie so we can put more troops on the ground and increase market share?  You know, sacrifice some margin now for long-term growth.  Is that strategy too old-fashioned?

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------


Original Message:
Sent: 04-10-2019 14:50
From: Wayne Schulz
Subject: New Reseller Margins as of May 1st

I thought this had been out for some time?

And, yes, Sage is taking advantage of the fact that the channel really has no recourse.

For the channel, it's all about making money now on consulting.
And if that model doesn't support their overhead then consulting firms will need to reorganize to a model that does.

It seems the only ERP not following down this path are the relatively new ones and just give them time and as they grow they'll eventually follow suit.

------------------------------
Wayne Schulz - Schulz Consulting - 860-516-8990

I attended a Sage briefing way back in October of 2002, in Boston, where European Sage Investors were present to talk about the American marketplace and ERP systems.  The Sage folks from Europe did not understand why resellers were necessary for new sales and certainly didn't understand why those resellers would be taking any kind of margin at all on the sale of new ERP systems. After all, Sage was the #1 product in Europe for financial systems - and they didn't have or need resellers there.  Mr. Butler spent hours trying to convince those investors that the reseller channel was critical here in the U.S. and that Sage would not survive without that channel.  Sadly, Mr. Butler resigned the Presidency only a year or so after that Boston meeting.  I guess Sage Europe finally is getting exactly what they wanted...

------------------------------
Sue Bennett
Jack of All Trades, Master of 1
Bennett/Porter & Associates, Inc.
Tigard OR
503.620.3484
------------------------------

Original Message:
Sent: 04-10-2019 16:50
From: Kevin Moyes
Subject: New Reseller Margins as of May 1st

With high churn in executive positions, why would they care about long term stability of the company?  It will take time for existing sales efforts to switch to another product which pays better, and by then the short sighted tactic will tick up revenue... executive bonuses will have been "earned"...  The smoking crater left behind is someone else's problem.

------------------------------
Kevin Moyes
Technical Systems Analyst
Munjal White Consulting Co.
Toronto ON
------------------------------


Original Message:
Sent: 04-10-2019 16:25
From: Doug Higgs
Subject: New Reseller Margins as of May 1st

I know the new model is reality, and I do not understand the reasoning for low or no margin for channel partners, and channel partners need to rely on service revenue to survive.   Is the strategy as simple as "if we take all of the pie for ourselves we will be more profitable."?  If that's the case then channel partners will begin to disappear and publishers will eventually only sell direct to the end user.

If the channel partner gets little or no margin, how do they fund sales and marketing?  By raising the rates for service revenue?  Now sales and marketing are no longer self-sustainable and the consulting team is financing the program.

Whatever happened to give the partners a piece of the pie so we can put more troops on the ground and increase market share?  You know, sacrifice some margin now for long-term growth.  Is that strategy too old-fashioned?

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc


Original Message:
Sent: 04-10-2019 14:50
From: Wayne Schulz
Subject: New Reseller Margins as of May 1st

I thought this had been out for some time?

And, yes, Sage is taking advantage of the fact that the channel really has no recourse.

For the channel, it's all about making money now on consulting.
And if that model doesn't support their overhead then consulting firms will need to reorganize to a model that does.

It seems the only ERP not following down this path are the relatively new ones and just give them time and as they grow they'll eventually follow suit.

------------------------------
Wayne Schulz - Schulz Consulting - 860-516-8990

@Doug Higgs I think the publishers of products they consider “out to pasture” (but still profitable) rightfully figure why pay consultants more if the existing product isn’t driving new sales. Do they really need to pay us to collect maintenance? (Answer: No). Will paying us to sell a legacy product increase shareholder value or produce a good story to tell analysts? (Answer: No). IMO, we need to work with this and reorganize for the new reality. If you’re employing salesman they probably should be working almost exclusively on $100k+ deals that have a defined recurring revenue stream that is NOT reliant on a commission from a publisher or ISV since we see how fast those change. It’s all about consultant controlled (non commission) recurring revenue.

---------------------------------
Wayne Schulz - Schulz Consulting - 860-516-8990
---------------------------------



Original Message:
Sent: 04-10-2019
From: Doug Higgs
Subject: RE: New Reseller Margins as of May 1st

I know the new model is reality, and I do not understand the reasoning for low or no margin for channel partners, and channel partners need to rely on service revenue to survive.   Is the strategy as simple as "if we take all of the pie for ourselves we will be more profitable."?  If that's the case then channel partners will begin to disappear and publishers will eventually only sell direct to the end user.

If the channel partner gets little or no margin, how do they fund sales and marketing?  By raising the rates for service revenue?  Now sales and marketing are no longer self-sustainable and the consulting team is financing the program.   

Whatever happened to give the partners a piece of the pie so we can put more troops on the ground and increase market share?  You know, sacrifice some margin now for long-term growth.  Is that strategy too old-fashioned?

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------

@Wayne Schulz. What is an an example of ​a $100K+ deal that provides a recurring revenue stream?  Do you mean $100K+ of recurring consulting services, $100K of non-commissioned software subscription, or something else?

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------

Original Message:
Sent: 04-10-2019 21:49
From: Wayne Schulz
Subject: New Reseller Margins as of May 1st

@Doug Higgs I think the publishers of products they consider "out to pasture" (but still profitable) rightfully figure why pay consultants more if the existing product isn't driving new sales. Do they really need to pay us to collect maintenance? (Answer: No).Will paying us to sell a legacy product increase shareholder value or produce a good story to tell analysts?(Answer: No).IMO, we need to work with this and reorganize for the new reality. If you're employing salesman they probably should be working almost exclusively on $100k+ deals that have a defined recurring revenue stream that is NOT reliant on a commission from a publisher or ISV since we see how fast those change. It's all about consultant controlled (non commission) recurring revenue.

---------------------------------
Wayne Schulz - Schulz Consulting - 860-516-8990
---------------------------------




Original Message:
Sent: 04-10-2019
From: Doug Higgs
Subject: RE: New Reseller Margins as of May 1st

I know the new model is reality, and I do not understand the reasoning for low or no margin for channel partners, and channel partners need to rely on service revenue to survive.   Is the strategy as simple as "if we take all of the pie for ourselves we will be more profitable."?  If that's the case then channel partners will begin to disappear and publishers will eventually only sell direct to the end user.

If the channel partner gets little or no margin, how do they fund sales and marketing?  By raising the rates for service revenue?  Now sales and marketing are no longer self-sustainable and the consulting team is financing the program.

Whatever happened to give the partners a piece of the pie so we can put more troops on the ground and increase market share?  You know, sacrifice some margin now for long-term growth.  Is that strategy too old-fashioned?

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------


Original Message:
Sent: 04-10-2019 14:50
From: Wayne Schulz
Subject: New Reseller Margins as of May 1st

I thought this had been out for some time?

And, yes, Sage is taking advantage of the fact that the channel really has no recourse.

For the channel, it's all about making money now on consulting.
And if that model doesn't support their overhead then consulting firms will need to reorganize to a model that does.

It seems the only ERP not following down this path are the relatively new ones and just give them time and as they grow they'll eventually follow suit.

------------------------------
Wayne Schulz - Schulz Consulting - 860-516-8990

I mean if you have the overhead of sales and customer account managers that you’ll need to be focused on bigger deals. The days of supporting small GLAPAR on an hourly basis are finished under this new shrinking margin reality.

For years some consultants used margin on sales/maintenance to subsidize unprofitable hourly rate type work for, honestly, too small customers.

The future of profitable Sage 100 consulting is the distribution niche with 10+ users and 3+ integrated solutions.

There will be spillover and exceptions but this is the Sage 100 sweet spot.

We, as consultants, must get customers onto a recurring revenue plan separate from publisher commission. This is true for on-prem, legacy, SAAS, etc. It’stechnology agnostic that you must have a plan with every customer for your own (non commission) recurring revenues.







---------------------------------
Wayne Schulz - Schulz Consulting - 860-516-8990
---------------------------------



Original Message:
Sent: 04-10-2019
From: Doug Higgs
Subject: RE: New Reseller Margins as of May 1st

@Wayne Schulz. What is an an example of ​a $100K+ deal that provides a recurring revenue stream?  Do you mean $100K+ of recurring consulting services, $100K of non-commissioned software subscription, or something else?

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------


Original Message:
Sent: 04-10-2019 21:49
From: Wayne Schulz
Subject: New Reseller Margins as of May 1st

@Doug Higgs I think the publishers of products they consider "out to pasture" (but still profitable) rightfully figure why pay consultants more if the existing product isn't driving new sales. Do they really need to pay us to collect maintenance? (Answer: No).Will paying us to sell a legacy product increase shareholder value or produce a good story to tell analysts?(Answer: No).IMO, we need to work with this and reorganize for the new reality. If you're employing salesman they probably should be working almost exclusively on $100k+ deals that have a defined recurring revenue stream that is NOT reliant on a commission from a publisher or ISV since we see how fast those change. It's all about consultant controlled (non commission) recurring revenue.

---------------------------------
Wayne Schulz - Schulz Consulting - 860-516-8990
---------------------------------




Original Message:
Sent: 04-10-2019
From: Doug Higgs
Subject: RE: New Reseller Margins as of May 1st

I know the new model is reality, and I do not understand the reasoning for low or no margin for channel partners, and channel partners need to rely on service revenue to survive.   Is the strategy as simple as "if we take all of the pie for ourselves we will be more profitable."?  If that's the case then channel partners will begin to disappear and publishers will eventually only sell direct to the end user.

If the channel partner gets little or no margin, how do they fund sales and marketing?  By raising the rates for service revenue?  Now sales and marketing are no longer self-sustainable and the consulting team is financing the program.

Whatever happened to give the partners a piece of the pie so we can put more troops on the ground and increase market share?  You know, sacrifice some margin now for long-term growth.  Is that strategy too old-fashioned?

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------

@Wayne Schulz. I understand.  Thanks for your comments.   ​

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------

Original Message:
Sent: 04-11-2019 06:27
From: Wayne Schulz
Subject: New Reseller Margins as of May 1st

I mean if you have the overhead of sales and customer account managers that you'll need to be focused on bigger deals. The days of supporting small GLAPAR on an hourly basis are finished under this new shrinking margin reality.

For years some consultants used margin on sales/maintenance to subsidize unprofitable hourly rate type work for, honestly, too small customers.

The future of profitable Sage 100 consulting is the distribution niche with 10+ users and 3+ integrated solutions.

There will be spillover and exceptions but this is the Sage 100 sweet spot.

We, as consultants, must get customers onto a recurring revenue plan separate from publisher commission. This is true for on-prem, legacy, SAAS, etc. It'stechnology agnostic that you must have a plan with every customer for your own (non commission) recurring revenues.







---------------------------------
Wayne Schulz - Schulz Consulting - 860-516-8990
---------------------------------




Original Message:
Sent: 04-10-2019
From: Doug Higgs
Subject: RE: New Reseller Margins as of May 1st

@Wayne Schulz. What is an an example of ​a $100K+ deal that provides a recurring revenue stream?  Do you mean $100K+ of recurring consulting services, $100K of non-commissioned software subscription, or something else?

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------


Original Message:
Sent: 04-10-2019 21:49
From: Wayne Schulz
Subject: New Reseller Margins as of May 1st

@Doug Higgs I think the publishers of products they consider "out to pasture" (but still profitable) rightfully figure why pay consultants more if the existing product isn't driving new sales. Do they really need to pay us to collect maintenance? (Answer: No).Will paying us to sell a legacy product increase shareholder value or produce a good story to tell analysts?(Answer: No).IMO, we need to work with this and reorganize for the new reality. If you're employing salesman they probably should be working almost exclusively on $100k+ deals that have a defined recurring revenue stream that is NOT reliant on a commission from a publisher or ISV since we see how fast those change. It's all about consultant controlled (non commission) recurring revenue.

---------------------------------
Wayne Schulz - Schulz Consulting - 860-516-8990


Original Message:
Sent: 04-10-2019
From: Doug Higgs
Subject: RE: New Reseller Margins as of May 1st

I know the new model is reality, and I do not understand the reasoning for low or no margin for channel partners, and channel partners need to rely on service revenue to survive.   Is the strategy as simple as "if we take all of the pie for ourselves we will be more profitable."?  If that's the case then channel partners will begin to disappear and publishers will eventually only sell direct to the end user.

If the channel partner gets little or no margin, how do they fund sales and marketing?  By raising the rates for service revenue?  Now sales and marketing are no longer self-sustainable and the consulting team is financing the program.

Whatever happened to give the partners a piece of the pie so we can put more troops on the ground and increase market share?  You know, sacrifice some margin now for long-term growth.  Is that strategy too old-fashioned?

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc


Original Message:
Sent: 04-10-2019 14:50
From: Wayne Schulz
Subject: New Reseller Margins as of May 1st

I thought this had been out for some time?

And, yes, Sage is taking advantage of the fact that the channel really has no recourse.

For the channel, it's all about making money now on consulting.
And if that model doesn't support their overhead then consulting firms will need to reorganize to a model that does.

It seems the only ERP not following down this path are the relatively new ones and just give them time and as they grow they'll eventually follow suit.

------------------------------
Wayne Schulz - Schulz Consulting - 860-516-8990

@Wayne Schulz. I understand.  Thanks for your comments.   ​

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------

Original Message:
Sent: 04-11-2019 06:27
From: Wayne Schulz
Subject: New Reseller Margins as of May 1st

I mean if you have the overhead of sales and customer account managers that you'll need to be focused on bigger deals. The days of supporting small GLAPAR on an hourly basis are finished under this new shrinking margin reality.

For years some consultants used margin on sales/maintenance to subsidize unprofitable hourly rate type work for, honestly, too small customers.

The future of profitable Sage 100 consulting is the distribution niche with 10+ users and 3+ integrated solutions.

There will be spillover and exceptions but this is the Sage 100 sweet spot.

We, as consultants, must get customers onto a recurring revenue plan separate from publisher commission. This is true for on-prem, legacy, SAAS, etc. It'stechnology agnostic that you must have a plan with every customer for your own (non commission) recurring revenues.







---------------------------------
Wayne Schulz - Schulz Consulting - 860-516-8990
---------------------------------




Original Message:
Sent: 04-10-2019
From: Doug Higgs
Subject: RE: New Reseller Margins as of May 1st

@Wayne Schulz. What is an an example of ​a $100K+ deal that provides a recurring revenue stream?  Do you mean $100K+ of recurring consulting services, $100K of non-commissioned software subscription, or something else?

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------


Original Message:
Sent: 04-10-2019 21:49
From: Wayne Schulz
Subject: New Reseller Margins as of May 1st

@Doug Higgs I think the publishers of products they consider "out to pasture" (but still profitable) rightfully figure why pay consultants more if the existing product isn't driving new sales. Do they really need to pay us to collect maintenance? (Answer: No).Will paying us to sell a legacy product increase shareholder value or produce a good story to tell analysts?(Answer: No).IMO, we need to work with this and reorganize for the new reality. If you're employing salesman they probably should be working almost exclusively on $100k+ deals that have a defined recurring revenue stream that is NOT reliant on a commission from a publisher or ISV since we see how fast those change. It's all about consultant controlled (non commission) recurring revenue.

---------------------------------
Wayne Schulz - Schulz Consulting - 860-516-8990


Original Message:
Sent: 04-10-2019
From: Doug Higgs
Subject: RE: New Reseller Margins as of May 1st

I know the new model is reality, and I do not understand the reasoning for low or no margin for channel partners, and channel partners need to rely on service revenue to survive.   Is the strategy as simple as "if we take all of the pie for ourselves we will be more profitable."?  If that's the case then channel partners will begin to disappear and publishers will eventually only sell direct to the end user.

If the channel partner gets little or no margin, how do they fund sales and marketing?  By raising the rates for service revenue?  Now sales and marketing are no longer self-sustainable and the consulting team is financing the program.

Whatever happened to give the partners a piece of the pie so we can put more troops on the ground and increase market share?  You know, sacrifice some margin now for long-term growth.  Is that strategy too old-fashioned?

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc


Original Message:
Sent: 04-10-2019 14:50
From: Wayne Schulz
Subject: New Reseller Margins as of May 1st

I thought this had been out for some time?

And, yes, Sage is taking advantage of the fact that the channel really has no recourse.

For the channel, it's all about making money now on consulting.
And if that model doesn't support their overhead then consulting firms will need to reorganize to a model that does.

It seems the only ERP not following down this path are the relatively new ones and just give them time and as they grow they'll eventually follow suit.

------------------------------
Wayne Schulz - Schulz Consulting - 860-516-8990