Hoping to boost sales of its recently launched SME portfolio, Netspace has announced its first channel program for systems integrators and retailers.
As part of the new program, the Melbourne-based ISP will offer partners an upfront finder’s fee on all referrals as well as ongoing commissions for the term of a customer’s connection.
Netspace managing director, Stuart Marburg, said Netspace had previously chosen to focus on selling its product direct.
However, the company had recognised the channel could play an increasingly important role in growing its presence within the small business and SOHO markets.
“System integrators and retailers are the ones touching the customers and providing assistance,” Marburg said. “Many small businesses contact the reseller first. These resellers often recommend what ISPs to use. This is one of the reasons for why we launched the program.”
To support its incentive scheme, Netspace has launched an online partner portal, featuring a guide on marketing its range of products. The site also houses the functionality for partners to perform service qualification checks, as well as online customer sign-ups. Marburg said the new portal would use browser cookies to track which reseller customers had been referred from.
“If the customer doesn’t go back to the reseller but instead, comes to our site directly, we can still reward them for referring us,” he said.
All of the ISP’s broadband products will be available to new channel partners. Most would be eligible for varying levels of commission, with the exception of entry-level ADSL products which do not offer the scope for such bonuses, Marburg said.
There would be more margins available to those selling the SOHO or corporate products.
“We’re only making about $0.25 margin on a $29.95 ADSL offering,” he said. “It’s a matter of finding the balance with our products.”
Marburg said he would be happy if half of Netspace’s future product sales went through the channel.
“But I’d like to have a net increase rather than moving customers from direct to resellers,” he said.
Marburg said Netspace hoped to sign up about 300 partners by Christmas.
So far, most of the companies which had signed up under the new partner program were small systems integrators.
To further strengthen its commitment to the channel, Marburg said Netspace had appointed dedicated channel managers in both Victoria and Tasmania.
The company would look at putting people on across other states as demand required, he said.