Whoa – Your Margins are Too High!
Thursday, January 23, 2014I have heard a few times lately from other software developers that eOne gives margins that are too high and are making them look bad!! Really? This is not an article that promises to never change our margins – but will explain why they are high on both new product and also the associated renewals.
1. eOne used to be a VAR:I understand that selling software is about making money – and if I am going to sell someone’s software then I want to make money out of it!
2. Long term recurring revenue: The VARS I know are all about building a recurring stream of revenue. I want that recurring stream to include renewals on all our products. If our products are good, and the margins high – then they will continue to collect the AEP revenue on our behalf.
3. No Discriminatory Levels: We do not discriminate between large VAR’s and small one. I have never understood why a software developer should keep more margin just because a VAR does not sell high volumes. There is really no logical sense behind this model. I have never seen the threat of a reduced margin change the behavior of a VAR for the good.
- At eOne we do want committed VAR’s and charge an annual fee of $1,000 for the right to be part of the program, access to marketing material, access to support etc. In addition the admin involved in managing multiple margin levels is too much work. We keep things simple.
- We also expect the same high quality delivery from all our partners big and small, including quality in demo and implementation regardless of VAR size. We make spot check calls on EVERY customer to ensure they are happy with the service provided by the selling VAR.
4. Learning: It takes time to learn a new product. We think that for your effort you should get a big piece of the pie.
5. Not being Greedy: I have had many people come to me asking for advice about starting a new business and what they should do. My first piece of advice is ‘Do not be greedy’. Do not be greedy with your business partners or your customers. Be fair and do what is right and works for everyone. If the business arrangement does not work for everyone involved it will not last for long.
So for all those VAR’s that were on lower margins with Microsoft - we moved you to full margins on all SmartList Builder new sales and renewals. For all those that have switched from IM to SmartConnect – you now make better margin on all new sales and renewals.
So if you want to deal with a non-discriminatory company, that has one single flat margin for all our resellers, that wants to help you make money and has no interest in taking more than their fair share – then jump on board with eOne.
If you are interested in becoming an eOne reselling partner please reach out to us at sales@eonesolutions.com and we'd be happy to get you on board!
High???? As a customer I would say you have one of the cheapest rates in the market and your products are priced very low compared to others…I wont mention names but some are absolute thieves!