MSP Today Expert Feature
January 20, 2016

MegaPath's Offer for New Partners Draws Attention

Don Vito Corleone taught us all about the offer we can’t refuse. Sure, Corleone's version ended in horse's heads and death, but for MegaPath (News - Alert), the offer new partners can't refuse comes in the form of a big new payout incentive.

New channel partners now have access to what's known as the “Jump Start” spiff, a special first-quarter incentive that combines with other such benefits to produce a potentially huge payout: a one-time payout equivalent to four times monthly recurring revenue (MRR).

Jump Start works in several stages, and mainly seems to kick in when MRR is over $1,000 for the first quarter. Then, it focuses on what was sold; those who sell MegaPath Hosted Voice or Unified Communications (News - Alert) (UC) services can get up to three times MRR. Those who sell any of several other services, like Managed Wi-Fi, session initiation protocol (SIP) trunks, primary rate interface (PRI) systems, or cloud information technology (IT) services can get up to two times MRR. Then, those who offer certain Ethernet access or T1 services can get an additional one time MRR.

Those who look askance at this and wonder what MegaPath's doing for its current partners need not worry; MegaPath also has extra spiffs afoot for its current partnership, and those who want to know more need only contact the current MegaPath Channel Manager.

MegaPath's vice president of channel sales, Robert McCarthy, offered up some explanation around the new programs, noting that 2016 was set to be a big year for new partners within the organization. The company is actively looking to expand its indirect channel operations, McCarthy noted, so bringing in a massive new spiff geared toward new partners is a smart idea.

That's an important distinction, and hopefully, McCarthy's backing it up appropriately. Ignoring old channel partners in favor of new ones is a sure way to lose old channel partners. Constantly offering huge payouts to new partners is a great way to bring in new partners, but unless similar deals are extended to old partners, said partners will just go look for places where those are the new partners, and get paid accordingly. It's also worth considering that MegaPath should be considering smaller payouts over a longer period; a four-time burst is great, particularly in a time where people may not be considering making a lot of spending, but it may make partners focus sales efforts only on that time frame.

MegaPath is making its new partners an offer that can't readily be refused. Hopefully, however, it's prepared to follow up lest its future offers be a bit more readily refused, and thus leaves MegaPath with some slow sales seasons until the next big spiff.

Edited by Kyle Piscioniere