(BP – Strategic Partner) – Strategic Partner Income Generator Tool2018-08-01T19:35:48+00:00

Strategic Partner Income Generator Tool

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Every business needs a plan, and the Strategic Partner Program is no different. Using the Income Generation tool a Strategic Partner is able to develop an understanding of the results necessary to achieve their income targets. Additionally, this tool can help the Strategic Partner gain an understanding of the effort necessary and the timeline for developing income in each of the income generators.

As with any plan or budget, this tool sets out the results needed to achieve the income that’s calculated on each of the tabs (aggregated on the Summary tab). For this example, the assumptions that lead to the income shown are presented in the panels below. To achieve these results requires an effort that ultimately produces the result shown. For example, it may be necessary to connect with one-half dozen or more prospects for the company’s products and services to find a buying customer. “Effort” comes before “Results” in the dictionary, and appropriately so. Likewise, the only place that “Success” comes before “Work” is in the dictionary – the work you put into this program will dictate the success that will follow.

This example is just that – an example. Each Strategic Partner needs to determine the programs that best aligns with their skills and build a plan to achieve their target income goals. To develop that plan, some Strategic Partners will develop their own business model with a more granular analysis of the markets they want to target and the solutions offered. Every Strategic Partner has the opportunity to structure their business in a way that meets their needs.

Scroll down the page to review the assumptions used in the summary worksheet below.

Income Generation tool

General Revenue Sharing Tab

This tab consists of 4 sub-income generators:

  1. Systems/Software: Assumption includes an average of $40,000 in software per sale, the first sale in 3 months with completion three months later, and an additional sale every 4 months after the initial sale, each with a completion in 3 months following the order. Revenue sharing with Strategic Partner occurs at the time of receipt of payment, which is scheduled for 1 month following completion of the work. There are other items on which there is revenue sharing, but this model only includes the software license component of system sales. Other items include professional services, third party software, and any change orders or other related purchases throughout the first year following contract date.
  2. Software as a Service (SaaS): Assumption includes an average of $1,500 per month per sale, the first sale is in 2 months with an additional sale every other month. There are other items on which there is revenue sharing, but this model only includes the monthly SaaS fee component of the solution. Additionally, organizations will increase their requirements which increases their monthly payments, and that change is not reflected in these estimates.
  3. Document/System Conversion Services: Assumption is that one of the systems or SaaS clients will require a document conversion of paper or microfilm documents or require a system conversion from their current system to the new system or SaaS environment. For this generator, the forecast is that the first sale is in 6 months with an additional sale every 6 months thereafter. Each sale is sized at $40,000.
  4. Hosting Services: Assumption includes an average of $1,000 per month per sale. The first sale is in 2 months with an additional sale every other month. There are additional fees associated with hosting services on which the Strategic Partner is compensated, but those are not included in the estimate.

Partner Development Tab

Your recruitment and sponsorship of other individuals and businesses into the Strategic Partner Program may result in a passive income opportunity. The development of General Revenue Sharing incomes by these partners provides the basis on which additional fees are paid to you, the sponsor. The sponsor is paid 20% of the amounts paid to their sponsored partners for income received from the General Revenue Sharing program, for as long as or whenever the sponsored partner receives such income.

The assumptions used in calculating the sponsor’s income include:

  1. The average income earned by the partners you’ve sponsored is ¼ of the sponsor’s earnings in the same category. They are only, on average, earning 25% of what the sponsor is earning for General Revenue Sharing.
  2. The sponsor has recruited one partner per month starting in month 2, for 10 months, and thereafter is recruiting one new partner every other month.

Sub-Partner Development Tab

Partners sponsored in Tier 2 Partner Development will recruit and sponsor other individuals and businesses into the Strategic Partner Program. As the original sponsor of the partner in Tier 2, you will benefit as these sub-partners generate business and participate in the General Revenue Sharing program. As the original sponsor you are paid 10% of the amounts paid to these sub-partners for income received from the General Revenue Sharing program, for as long or whenever the sub-partner receives such income.

The assumptions used in calculating the sub-sponsor’s income include:

  1. The average income earned by the sub-partners you’ve sponsored by your partners is 1/8th of the earnings you’ve targeted in the General Revenue Sharing program. They are only, on average, earning 15% of what the your are earning for General Revenue Sharing.
  2. The Tier 2 Partner has sponsored one partner every other month, resulting in 6 new partners per year.

Recruiting Tab

Partners are provided an opportunity to help ScerIS find talent to fill open positions. Filling an open position results in a 15% fee, paid monthly to the partner, based on the wages paid to the employee in the prior month, for 2 years. The 15% fee is applied to base wages, bonuses and commissions, but is not applied to fees paid to the employees who participate in and receive fees for sponsoring partners into this program.

The assumptions used in calculating the partner’s income include:

  1. The average wage per recruit is $80,000.
  2. The partner makes a placement with ScerIS every four months.

VAR/OEM Placements Tab

Businesses resell and private label products. Introductions to VAR and OEM clients will result in 5% fees paid to the partner based on software purchases by the VAR/OEM. These fees can continue for a long period.

The assumptions used in calculating the partner’s income include:

  1. The average software purchase price is $25,000 (discounted from retail)
  2. The average VAR/OEM will purchase one software license per month in months 3-5, and two software licenses per month thereafter.
  3. The partner will facilitate the introductions and contracting of a new VAR/OEM relationship in 4 months, then 8 months, then every 5 months thereafter.