Sage 100

Perpetual vs subscription commissions. Do commissions on subscription renewals terminate after a specified time period?

Don't think so. Sage hasn't indicated when they are going to turn that screw on us yet.

No, there is no expiration of subscription commissions. Having started converting customers to subscription prior to the c/cloud renaming, and almost all now converted, these commissions have become a substantial part of our revenue. Besides taking away our incentive, if eliminated, it would decrease our profitability. For the top resellers, this would be an even greater affect, and they have told Sage this. Unlike the original subscription terms where the commissions reverted back to Sage after an ROR, the commissions do transfer to the new partner.

Great news. Thanks for the update Jeff and John.

From my experience: 1. Customer is on PERPETUAL and Easy Pay (monthly or annual) - the full (not monthly paid) commission goes to the VAR at the time of renewal. If you ROR away from original VAR that original VAR keeps the commission unless the end user also goes with 100cloud/subscription which at that time Sage takes back the unearned portion and pays the subscription based commission to the new ROR. 2. Customer is on SUBSCRIPTION - if annual paid the full amounts goes to ROR, if monthly pay the ROR gets monthly payments. Upon ROR away I suspect the same rules as above apply though if monthly pay it's a little easier since there's no/little unearned portion. Thankfully, I never experienced a commission reverting back to Sage after RORing an end user to us.

All of the above requires you remain an authorized partner/reseller. Otherwise, I believe if you stop being authorized you stop receiving payments. That's what the don't-call-it-a-master-var-program is for IMO.

Thanks Wayne.

I know the policy WAS, and it may have changed, that months 1-12, you get your tier-level-based percentage, and then it goes (in my case UP) to 30% from month 13 forward. I reconcile commissions and it's a pain and Sage is not very consistent in applying the correct rate. Plus, if a customer's card expires or gets declined one month, you have to be all over it, because Sage doesn't always notify the partner.

@RhondaMcNamara Dealing with Sage on commissions and tier is a great use of the idiom ""watch him like a hawk"". It takes forever to get to someone at Sage who finally understands what happened and then as much time to get it fixed. By the way, tier posting is still a manual process.