Partners bringing in new business can expect additional margin spikes for wins
Dell EMC's channel partners are receiving increased margins for bringing in new customers as the vendor seeks increased market share.
The Dell EMC partner programme, which launched in February, has built-in margin incentives for channel players drawing in new end-users.
Cheryl Cook, VP global channels and alliances at Dell EMC, told CRN the vendor has a differentiated rebate structure for what it calls a new business incentive.
"This applies when a partner brings in a new logo or a new line of business into a customer that qualifies for the new business incentive. For example, it is quite lucrative in storage and you can earn up to eight percentage points. That is in addition to the base rebate, so there are fiscal incentives in the structure of our partner programme to incentivise and reward the channel."
Cook explained that this applies to end-users that have never worked with Dell or EMC before, but it does not stop there.
"It could also be that the end-user potentially were buying only a single line of business from Dell or EMC and they are now expanding into a new line of business that they have never done before, then they would also qualify.
"Maybe they bought PCs from Dell, but they had never bought storage from EMC, so when they start buying that storage they would be eligible."
Dell EMC's partner programme in based on the vendor's three commitments of simple, predictable and profitable, with the latter of the trio being satisfied by the new customer rebate system, alongside other incentives such as market development funds (MDF) and training, added Cook.