Microsoft to Change Compensation for ERP and CRM Partners

Mark J

Updated · Oct 29, 2010

Microsoft has said it is revamping its compensation for ERP and CRM partners. As reported on Redmond Channel Partner, the new Dynamics Incentives Program, which will go into effect in January 2012, will add growth into Microsoft's calculations of partner margins, in addition to total revenues.

“Partner margins will go up by up to 20 percentage points if license revenue growth hits one-year and two-year targets, and if customer additions hit certain targets. Conversely, if growth isn't hitting Microsoft's targets, margins can go down by as much as 15 percentage points, Edwards said.

“Additionally, Microsoft will be separating license revenue targets from maintenance targets. ‘Larger portions of contracts renewed will get paid more, smaller portions of contracts renewed will get paid less,' he said.”

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