SAP offers cash for referrals in new cloud channel program

SAP is offering a percentage of its cloud revenue to businesses that refer new customers, after handing partners a cut of contracts they helped sell in August

To sell its cloud services, ERP vendor SAP is crowdsourcing its sales team.

SAP began offering its 15,000 software partners a share of revenue from cloud services they helped sell back in August, under a program called Cloud Choice Profit.

It was a way to reward them for helping businesses migrate from traditional on-premise systems, where partners could capture a larger share of the revenue.

At a sales conference in New York on Thursday, it extended the program to offer any businesses, partner or not, referral fees if leads they provide result in a sale of cloud services, an option SAP calls Cloud Choice Referral.

The program covers sales of SAP's ERP Cloud and HCM Cloud, among other services.

"We want to become the cloud leader for business apps," said Karl Fahrbach, head of the Cloud Choice program.

To get those services to SMEs, SAP relies on partners for the integration and also, so far, the sales side. "Our strategy is partner first. They give us scalability," said Fahrbach.

In return for that scalability, partners are rewarded with 20 percent of SAP's net cloud revenue for the duration of the contract sold, in addition to any revenue they make from integration or ongoing support services.

Now SAP is hoping to recruit a new salesforce by paying businesses simply for providing sales leads that result in a sale. Referrers will get 10 percent of SAP's cloud revenue from the first year of any contracts they help sell.

In the SME market, SAP puts its average net contract value for HCM Cloud service at around €30,000 (US$32,000) per annum, so referrers could make 10 percent of that if they are the first to provide SAP with a qualified lead that results in a sale.

At the low end of the SME market for ERP Cloud, SAP puts its average net contract value at around €25,000 per annum. If a referrer helps SAP land a whale, though, the upside is for SAP: It's putting a limit of €25,000 on the reward from any one deal.

Partners could make 20 percent of those contract values, throughout the life of the initial contract. They also get a 15 percent cut of the contract value if it is renewed after its initial term.

In return for those higher rewards, they'll be providing more support but, said Fahrbach, "the benefit for partners is a recurrent revenue stream."

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Peter Sayer

IDG News Service
Show Comments

Brand Post

PC World Evaluation Team Review - MSI GT75 TITAN

"I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it."

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?