**Editor's Note: Click here for a list of recent channel-program changes you should know.**
Intelisys, the master agency and technology services distributor, has expanded its Advanced Commissions Program to include upfront commissions based on the total billing value of a customer contract.
Contracts for cloud and carrier services are often between two and five years long, with commissions paid on the monthly recurring customer net billed revenue. That model can be very profitable in the long term, but it can present a cash-flow challenge for a lot of VARs that fund their businesses and compensate their sales teams on large, one-time margin.
“We’ve been helping hundreds of IT solution providers around the country build residual revenue-based cloud and carrier services practices. The cash flow challenge has always presented the largest roadblock to growth for these partners," said Andrew Pryfogle, SVP of cloud & complex bids at Intelisys. “Launching upfront commissions as part of our Advanced Commissions Program is the breakthrough IT solution providers have been searching for, and the adoption and results have been immediate."
Intelisys says the Advanced Commissions Program gives VARs the flexibility to choose how they want to receive commission payments: one-time, upfront payments based on the full contract value; traditional monthly annuity payments; or a combination of the two. VARs can now secure the upfront cash needed while still building their recurring revenue bases. Over time, as the cash flow gap is bridged, VARs will be able to favor residual income in order to build long-term, sustainable recurring revenue streams, Intelisys said.
Earlier this year, Intelisys announced its Channel Alignment Program, which is designed to partner cloud and carrier-selling professionals with VARs not yet ready to build their own dedicated practices. The Advanced Commissions Program can work in conjunction with the Channel Alignment Program as what Intelisys calls a "walk-before-run" strategy, accelerating a VAR’s pivot to rich recurring revenue streams.
Intelisys has allocated up to $2 million to fund the initial launch of this Advanced Commissions Program.
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