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Reselling VAR’s and ISV’s

The best thing about being an ISV in the Microsoft Dynamics space are the VAR’s.
The worst thing about being an ISV in the Microsoft Dynamics space are the VAR’s.
I know the above two statements are completely contradictory, but both are true. 

A VAR usually has an agreement with an ISV, in which the VAR agrees to terms on which they will market and sell the ISV solution to their customers.  For this the VAR receives a healthy margin (in our case we offer 40%) on any sales made to their customers.
What happens when a VAR signs an agreement with an ISV but fails to actively market or sell the ISV products to their customers. Lets pretend that VAR looks after 200 customers – does that mean that the ISV should exclude these customers from their available market? What if on of those customers approaches the ISV directly and a software sale is made? Does the VAR have any claim to margin?

At eOne we remain passionately supportive of all our active VAR’s. We remain equally passionate about selling the maximum number of software solutions we can. So what does this mean for eOne in 2012?

We will actively support all our VAR’s in the same way and I hope better ways than we have in the past. We will also be increasing our direct marketing activity to the general Dynamics GP customer and prospect base. If we find a customer or a customer finds us we will sell them our software directly.

We will be working directly with all our good resellers and assisting you to run active campaigns and help you present eOne solutions to your customers. For those that participate we will always share our margins. For those VAR’s that choose not to become active – then you will be missing out on revenue opportunities when sales are made within your customer base.

If you have any questions or wish to discuss further – please do not hesitate to contact us.

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