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Building a high margin service

Software as a service brings issues for teh channel in how to make margin - and how to pay their sales people
Author/s: Clive Longbottom
Created: 15/06/2009
Filename: CRN Keseya pres June 2009.pdf
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Large software projects provide sales people with large amounts of commission in the month after a deal is closed.  Moving to a subscription model provides lower amounts of commission based on an averaged model over a period of months and years.  However, the market is moving in this direction, and it is necessary for the channel to figure out how best to make money in the new, service-based market.