Craig Gordon, Head of Vuzion, writes …
1st January 2020 may seem a while off, but the changes just announced by Microsoft to their Co-operative marketing funds (Co-op) and the CSP indirect reseller incentives programmes are well worth noting now - and we recommend that you get your head around what the changes mean, as they could have a major impact on how you use and get these funds.
However, there’s no need to panic - there’s plenty of information available to help you meet these new requirements - and Vuzion can advise and answer any questions you may have.
New for Microsoft H2 FY20: Co-operative marketing funds (Co-op) and Cloud Solution Provider (CSP) Direct Partner and Indirect Reseller Incentive programme
On 1st January 2020 (Microsoft FY20 H2), Co-op will become a component of the CSP Direct Partner and CSP Indirect Reseller incentive programmes, with Microsoft using a 60 percent rebate/40 percent Co-op split.
What this effectively means is that if you’re incentive earnings for the six-month period are above the Co-op threshold (US$4,000 Co-op for the financial six months), as from 1 January 2020, you will receive 60 percent incentive entitlement as rebates, and will need to claim for the remaining 40 percent as Co-op funding.
Partners beneath the Co-op threshold, will receive the 40 percent withheld Co-op funds as part of their rebate payment in the following payment cycle.
Microsoft Co-op funds
Co-op marketing funds are intended to help partners create and carry out marketing activities to promote brand awareness and drive sales pipeline growth - with an overarching aim of helping partners to develop as ‘Centers of Excellence’.
Funds may, therefore, be used to support a range of activities - such as readiness enablement, working towards Microsoft certification, developing a specialisation.
In addition, Microsoft promotes Co-op funding as helping partners to increase profit, as the funds are available for reinvestment in the partner’s growth rather than paid directly into rebate.
Earning Co-op - examples
As reported above, from 1 January 2020, Microsoft will calculate monthly incentive earnings in a 60 percent rebate/40 percent Co-op divide.
As an example:
Claiming Microsoft incentives
Across the UK, 42 percent of Microsoft partners are failing to claim the incentive rebates to which they’re entitled. At Vuzion, we’re proud to be able to report that our partners have a far higher incentive uptake than this national average - and we work hard to ensure that our partners have the relevant knowledge about incentive availability, how to claim, and concerning updates and changes to programmes, such as those recently announced by Microsoft - for example, our blog, Microsoft announces CSP incentives for H2, FY19 takes you through the details of Microsoft CSP incentives for FY19 H2.
If you’re not claiming Microsoft incentives, you might like to read the blog written by Graeme Waring from our Vuzion Ireland office in Belfast, Microsoft Incentives and how to get them - and any one of the Vuzion team will also be happy to talk you through the process.