It’s been more than two year since Cisco Systems shocked the industry with the acquisition of Linksys.
At the time, the channel’s concern was that Cisco would slide down the slippery slope of no margin, low profit commodity products threatening its advanced technologies portfolio.
Today, Linksys has slowly transformed itself into a player in the growing small business space. The philosophy behind this approach is that small businesses require high end solutions no matter if the company has five employees or 200 PC environments.
With that, Linksys Canada is trying to recruit more solution providers and also develop its current reseller network into becoming larger VARs so they can sell more, said Bob Martin, channel account manager for Linksys Canada, based in Mississauga, Ont.
“We are looking for the VA VAR – the real value-added value added reseller. We are developing a program to incent and reward the partners so that they can sell more Linksys product and build better solutions on managed switches, Ethernet, and VoIP,” Martin said.
Those financial incentives will be 11 per cent more for an authorized partner than one that just acquires the product from distribution, he said.
“We you talk to a VAR they want to know two things. How does this make me money and how will you support me,” Martin said.
To that end, Linksys has developed two partner-focused Web sites; one in English (www.linksys.com/var) and the other one in French (www.linksys.com/varfrench).
“We are looking for more VARs to get authorized. Linksys is in open distribution and unlike Cisco when you are open any one with a Tech Data or Ingram Micro account can sell the product,” Martin said.
Of the thousands of Linksys partners across the country only 10 per cent are VoIP authorized. “That is a nice club to be a member of,” he said.
Besides offering 11 per cent margins, the new program will have monthly promotions, pre- and post sales support, 27 by 7 technical support and a PIN number-protected 1-800 support line for partners that will ensure shorter wait times by cutting customer calls.
It also will have 50 to 80 per cent discounts on demo units. There is no charge to enter the program.
“There are no minimum revenue targets, but not everyone will get approved. It will probably be less than half will get in. You have to be a solution provider and offer pre and post sales support. You also have to have a Web site and an account with a major distributor,” Martin added.
At distribution, the margin method is usually cost plus, but this program an additional 11 per cent will be added on.
The company is looking for solution providers that do more than $15,000 a month in Linksys business to join. These partners will end up getting back end rebates from distribution, access to a bid desk and government education discounts.
Martin believes that this program will make solution providers more competitive against big box retailers.
