If you were at WPC last week, you heard an exciting announcement! Microsoft is increasing its investments in partners selling Microsoft Online Services, supporting each customer’s purchasing choice and each participating partner’s business model. Partners can earn incentives on Microsoft Online Services, whether their customers are small customers purchasing online, or larger customers purchasing on the Enterprise Agreement (EA).
A Big Announcement about Online Services Advisor Incentives
Starting October 10, partners selling and deploying Office 365 and Windows Intune can earn up to 23 percent on year one eligible revenue. These incentives reward partners for working with customers in one of two ways: either for driving the sale of Windows Intune and Office 365 on a customer Microsoft Online Subscription Agreement, or for driving deployment of Windows Intune and Office 365 on a customer Microsoft Enterprise Agreement. Partners selling and deploying CRM Online can earn up to 30 percent incentives on year one eligible Dynamics CRM Online revenue.
There are a lot of details associated with these incentives. And it’s important to read the incentives guide so that you thoroughly understand the full terms, conditions, maximum earnings, and minimum thresholds that apply.
Here is a simplified example. Let’s suppose your company is eligible for these incentives. You have a customer, Contoso, that purchases a Microsoft Online Subscription Agreement (MOSA) by going online, and chooses you as a partner. You earn 12 percent incentives for each seat you sell. Now, let’s say you have another customer, Fabrikam, that already purchased Office 365 and Windows Intune on an EA. With Fabrikam, once you are associated as their deployment partner, you start to earn incentives after Fabrikam starts deploying seats. An example of “deployment” is turning an Office 365 mailbox into a named mailbox associated with a Fabrikam employee. You earn 12 percent incentives for each seat you deploy after meeting certain thresholds and requirements. On top of the 12 percent for the Constoso sale, or the Fabrikam deployment, you earn 4 percent yearly for maintenance services for keeping those customers on Microsoft Online Services. At this point, you have reached 16 percent in year one on Contoso and Fabrikam.
Now in addition to the incentives for your selling, deploying and managing online services, if you are also a Microsoft Cloud Accelerate Partner, you can earn additional incentives on eligible year one revenue, which can add up to 20–23 percent total in Online Services Advisor incentives, on any one deal. These “accelerators”, as they are called, grow from an additional 4 percent to an additional 6 percent, to an additional 7 percent, as you grow your Microsoft Online Services customer base and sell additional MOSA seats or deploy EA seats beyond certain thresholds. These accelerators will be applied retroactively to July 1, 2012, which means partners can effectively start earning these incentives now, and get paid after the launch of the incentives in October 2012.
How do you earn up to 30 percent on year one revenue for Microsoft Online Portal sales and EA deployments of Dynamics CRM? Eligible partners start with the same 12 percent core incentive that was described above for Dynamics CRM Online sales and deployments. Then, the 12 percent promotion this year brings partners to 24 percent on year one revenue. Partners also earn 6 percent in year one and beyond, for keeping their customers on Dynamics CRM Online.
This is an awesome opportunity for Microsoft partners to grow their Microsoft Online Services customer footprint. So be sure to take advantage!
Remember to review the FY13 incentives guide to learn all about the partner eligibility requirements, eligible revenue, terms, and conditions.