Hoping to boost its sales to smaller businesses in Europe and the surrounding region, Cisco Systems will launch a new incentive programme this month that provides financial rewards for channel partners who close deals with new customers.
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The idea is to compensate channel partners for the investments they make trying to secure deals with previously untapped customers.
The programme, called the Opportunity Incentive Programme, provides rebates for partners who are the first to close deals with a new client.
The networking supplier began piloting the programme in late May in Germany, the UK, the Netherlands, France and Poland.
A total of 458 channel partners registered to take part, submitting 439 new business opportunities, of which Cisco approved 267. Most of the deals were in the areas of IP (Internet Protocol) communications, network security and wireless projects, said Cisco.
Cisco did not disclosing the size of the rebates because doing so could compromise the business interests of the channel partners, it said.
The incentives programme is being rolled out across Europe, the Middle East and Africa this month and next.
Channel partners must provide Cisco with the decision maker's name at a potential new customer, and the budget and specifications for the project. If Cisco agrees it is a new business opportunity it will approve the lead, and the channel partner has 90 days to close the deal to get the rebate.
The programme is focused on what Cisco calls the commercial market, including small and medium-sized businesses. The minimum eligible deal size for the programme is $5,000.
Cisco does more than 90% of its business through its channel partners, making it imperative that it helps them to be profitable, it said.
James Niccolai writes for IDG News Service