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Channel Revenue Forecast Looking Up

By Khali Henderson
November 26, 2012 - Article

While the weak economy has, for the past couple of years, slowed partners’ growth prospects, those fortunes appear to be changing, according to the 2012 Channel Partners Compensation Survey, which polled telecom agents, VARs and dealers in October about their compensation amounts, revenue mix, preferences and projections.

Respondents — three-quarters of whom were telecom agents — expressed more optimism about their financial forecasts than they did in 2011. To that point, more of them projected better-than-expected revenue. More than half (51 percent) said their revenues were ahead or slightly ahead of expectations this year, compared to 36 percent in 2011.

Specifically, one in four said their revenue was tracking slightly ahead of expectations, compared to approximately one in seven last year. Another quarter said their revenue was ahead of expectations, compared with one-fifth a year ago.

Fewer partners said they were on target to reach their projections in 2012 than in 2011. About one in three were on target for this year while two in five were on target last year.

That said, fewer partners said they were behind or slightly behind expectations this year than last year. In 2012, less than one in five were trailing, compared with one in four a year ago. The biggest change was among those that were slightly behind — only 13 percent compared to 21 percent last year.

In line with the more optimistic outlook for 2012, twice as many channel partners said they would increase their year-over-year revenue by 26-50 percent than they did a year ago. One-third said their revenue would grow 26-50 percent from 2011 to 2012 while only 15 percent said the same for 2010-11.

Another  third (29 percent) said they would increase their revenue by 11-25 percent with virtually no change from last year's responses.  One in five said they would increase revenue by only 6-10 percent — again no change from last year.

However, the percentage of respondents who said they would increase revenue only 1-5 percent was nearly half the percentage a year ago. Nearly one in eight said they would increase revenue 1-5 percent in 2011-12 while more than one in four said the same for 2010-11.

Looking for more? Click here to download your copy of the 2012 Channel Partners Compensation Report for $24.99.

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