MS revamps SME reseller rebate scheme

Partners must make minimum sales of £25,000 before they can join

Microsoft has revamped its SME reseller rebate scheme, claiming it will allow more of its channel partners to save cash.

The scheme, known as the Microsoft Club, is specifically focused on smaller partners, explained Sue Page, Microsoft's partner marketing manager.

"We have listened to our partners and created greater flexibility on the range of product and licence types that are eligible for rebates," she said.

To qualify for the scheme, which works on a points basis, partners must sell at least £25,000 worth of Microsoft products per year.

The scheme covers all OEM and packaged-product resellers, as well as VARs that are part of Microsoft's Open License scheme.

"We are investing more in the SME channel and encouraging our partners to do more business with Microsoft," said Eric Gales, the firm's SME channel skills group manager.

He added that the SME channel is a growth area for Microsoft. "Resellers will get a different number of rebate points, depending on the mix of products they are selling," he said.

Clive Longbottom, service director of analyst Quocirca, said: "This is a good scheme for Microsoft, and especially good for channel partners with a turnover of between £100,000 and £500,000 a year."

The only potential problem with the scheme is if there are unscrupulous traders that force Microsoft products on customers to make sure they hit the £25,000 mark, Longbottom said. He added that the scheme must be properly policed to stop this happening.

"As long as it is monitored correctly, this is a good opportunity for Microsoft's smaller channel partners to get something back," he said.

But one reseller, who wished to remain anonymous, said that although it was a good idea for some partners, the smaller resellers that did not hit the £25,000 sales mark would not benefit at all.

"If Microsoft doesn't want to get into the smaller-dealer marketplace, they should introduce a scheme for distributors to pass on points, so everybody, however small, is rewarded in some way," he said.