AVG (A/NZ) is giving resellers a cut of earnings made from direct licencing renewals.
The distribution arm of security vendor, AVG, has kickstarted its Direct Renewal Guarantee program which will see its resellers continue to profit from former and existing customers. Previously, resellers missed out on when customers renewed licences directly with the distributor.
From March 1, partners that sell an initial AVG licence to a client will now receive a commission whenever the customer renews, increases or upgrade their licences, even if it was done straight through AVG (AU/NZ).
AVG (AU/NZ) marketing manager, Lloyd Borett, credited the decision to the distributor’s annual reseller survey, where partners requested a way to have better access to the lifetime value of a customer.
“We use the survey to measure customer service satisfaction and their happiness with the product,” he said. “It also gives them an opportunity to feed us suggestions to improve our program.”
The Renewal Guarantee will not be applied retrospectively. Resellers will receive their commissions in the form of quarterly cheques sent out by AVG (AU/NZ).
“We thought it would be a better way to do it than putting it in their accounts – it’s more personal that way,” Borett said. “You bet if resellers get a cheque in their hands, they will pay attention and notice we are providing a perk that other vendors aren’t.”
The distributor is expecting to send out its first cheques by the end of June.
Borett conceded the new commissions scheme will cost the company a significant amount of money but said AVG (AU/NZ) is willing to foot the bill and will not try to recoup the cost from customers.
The distributor is also keen to recruit more members to its channel and is seeking 1500-2000 more partners to join its 2700-strong reseller base.