by Steve Murphy

Resellers are always told that deal registration will make them more money. But when they’re pushing to close a month or close a quarter, the whole process as it has always existed just seems way too tedious.
Is it really going to help them reach their quota or their reps win a big SPIF?

The answer is actually, YES! Deal registration has numerous benefits, including the ability to allow resellers to reward their reps, increase their visibility and special discounts with vendors, get their products to customers quicker and make a lot more money!

The problem is that each vendor either has its own proprietary portal for registering deals or it requires resellers to keep track of deals in spreadsheets that they have to remember to email each month. Multiply that process by numerous vendors and even more inbound and field sales reps and SEs, deal reg seems more like a distraction from the goal of increasing profitability than a method to do so.

Because of this, as many as 40% of all qualifying deals are not getting registered. But, at what cost?

Let’s take a look at a hypothetical $250,000 data center deal:

a.  Data Center Vendor Deal Value

Additional Margin for Approved Registration

b.  Storage Vendor Deal Value

Additional Margin for Approved Registration

c. Virtualization Vendor Deal Value

Additional Margin for Approved Registration

d. Partner Provided Services

Total Deal Value

Registration Benefits

Incremental Margin on Overall Deal

 $100,000

10%

$ 50,000

10%

$ 35,000

10%

$ 65,000

$250,000

$ 18,500

7.4%

If the reseller chooses not to register this deal, it is walking away from nearly 3 overall margin points and costing its rep $1,500 in commission! This is money that these reps have earned yet it’s being left on the table. As the old saying goes: There’s gotta be a better way.

Vartopia’s reseller clients have shared some things with us that they think are essential for making deal registration a profitable part of the sales process:

Awareness

Vendors need to clearly communicate the benefits of deal registration to their reseller partners, and then the resellers need to make sure that their reps, SEs and support team know about those benefits and their potential impacts. Do the managers have visibility to the pipeline and the registration activity in real time and are they taking action on it? Are commissions tied to it? The messages about deal registration need to come from the vendor to the reseller and then consistently and clearly communicated from the top down within the organization.

Accountability

Clear lines of responsibility must be established and expectations managed if everyone in the sales organization and the reseller as a whole is going to benefit from deal registration. The process must be operationalized. Even if there is one person in charge of collecting all of the reps’ deal registration information and disseminating it among vendors monthly, there must be some kind of system in place that everyone is aware of and participates in.

Automation

Having the right tools is essential to providing those accountable with the ability to submit, manage and measure all registration requests and status. Using a multi-vendor deal registration process can help streamline submissions. Integrating with the CRM system can help monitor and track reseller efforts.

Adoption

Finally, clear accountability and good automation tools need reinforcement until they become a habit. Rewarding the resellers’ sales reps for getting their deals registered early in the selling process can help change behaviors and improve visibility for resellers and vendors alike.

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