Master agency Intelisys Communications has launched Drive for 5!, an incentive competition designed to award one Intelisys sales partner $1 million for being the first to achieve $5 million in monthly net customer billings.
“This program will be transformative,” said Intelisys president Jay Bradley. “Drive for 5! is all about a shift in perception. It will be representative of what this industry can accomplish. The growth opportunity is enormous. Dozens, perhaps hundreds, of Sales Partners will go after it, and all will have dramatically stronger businesses as a result of their participation in this contest.”
He explained that in achieving $5 million in monthly recurring revenue, an Intelisys sales partner is looking at bringing in approximately $700,000 per month, or $8.4 million per year, in commission income. And, that $8.4 million will typically repeat for three to six years, with no extra sales effort on behalf of the sales partner.
“Traditional hardware manufacturers are trying to control margins more than ever before,” sid Jason Kraft, director of sales at partner FusionStorm. “Eroding margins make looking at cloud, and other industries that offer recurring revenue, very enticing. This is an incentive that everyone should take a hard look at, to figure out what pivots they need to make in their business to embrace not only the $5 million challenge, but cloud opportunities as a whole.”
Intelisys noted that a VAR, to lock in $25.2 million income over three years in resale, would need roughly $279.9 million ($93.3 million each year for three years) in sales, calculated on an average pure hardware margin of nine percent.