LeadMaster begins CRM push using resellers

Managing director says systems are in place to stop excess competition between the vendor and resellers

CRM vendor, LeadMaster, is looking to expand its reseller base from three to a maximum of 11 in Australia. But its managing director says it won’t stop directly competing for deals.

LeadMaster Australia managing director, David Mackey, said most of his sales in Australia were direct, rather than through the company’s three existing resellers. But he claimed systems would be put in place to provide resellers with a fighting chance.

“We go direct, there’s no doubt about that, so what we’re trying to do is come up with a channel model that is interesting and profitable for our channel partners,” he said. “For example if you’re working on a company and you put that onto the partner register and it’s not already there, we’re going to give exclusivity… three months.”

While Mackey acknowledged companies could register a long list of lucrative companies in an effort to stop opposing resellers, he said LeadMaster would be keeping a close eye on the system to prevent rorting.

The managing director also said it would tell all resellers what deals it was working on and the price it was giving to customers. Partners would then be allowed to undercut the vendor on its own deals.

“We’re about growing our user base,” he said. “At the lowest end our product has a 30-35 per cent margin…at Enterprise it gets close to 50 per cent so they’re very healthy margins.”

Mackey also claimed his company was highly profitable and looking to hire more staff.

“We’re on track to do $4 million this year,” he said. “We’re well into the double digits for net profit.”

Mackey said he was mainly after small to medium resellers with 20-25 staff plus, but that he would look at partners on a case by case basis. The initial training will be free and there is no cost required to join the program.

“We’re looking for people who have experience in IT and technology, probably already sell some sort of CRM and have a professional service practice available to them so they can do the support, customisation and configuration,” he said.

“A nice fit would be people already selling ACT! or GoldMine or even a Microsoft server-based solution.

“What we hear from the market is that their clients are asking for a Web-based solution.”