Are you riding the Cisco Annuity money train?

Hello Cisco Partners,

Cisco’s strategic direction is to move from one-time product sales to services-oriented deals that are renewed annually, thus ensuring a continuing revenue stream. Translation: To get customers to stay with you (and Cisco solutions) over the long term, partners need to maintain customer relationships and become trusted advisors. This helps build a sustainable customer success practice with higher customer satisfaction and loyalty while driving profitability and transformation.

The good news is that annuities enable you to generate considerable profits and receive recurring payouts, too. Selling Annuities has the added benefit to provide ‘more predictable incentive dollars’ for partners. Whether you sell an annuity, renew it, or add to it, you continue to receive annuity payments.

The barrier to entry is quite low and the results very lucrative. Anyone in the VIP program is eligible to participate. You only need to sell the SKUs and have a minimum $1,000 cumulative monthly contract value (MCV) to get into the annuity business and start getting rebates.

The Cisco annuity money train requires little effort but yields considerable profits. Are you on board?

The money train payouts

With VIP40 every subtrack in the traditional Architecture track has associated annuity subtrack opportunities. Each annuity subtrack provides these bonuses- in some cases up to 13%! – depending on the subtrack:

• Base payout: Up to 4% of cumulative monthly contract value
• Land and Expand: Can be up to triple the Base payout for net growth in total contract value (TCV)
• Renewal: Can be nearly double the Base payout of TCV
• Additional bonus for specializations: 1%

Netformx provides insights on your annuity payouts

While it’s easy to get on the money train, the requirements and multi-year payment structure can be complex and convoluted. Oftentimes, it’s hard to know what you’ve earned and what the rebates will be in the Annuity track.

For example, partners want an easier way to determine:

• When they can expect payments and for how much
• When they get the payment, how to associate which customers the payment is for
• Which VIP period the payment is for and what is still outstanding

Netformx VIP Calculator (part of the Netformx Pipeline Insight Tool) and Netformx ChannelXpert provides that information at your fingertips. Enrollment prerequisites and payout requirements for each subtrack are automatically incorporated so you can jump onboard and pull the switches on all VIP Annuity offers. If you want to go the extra mile you can change the signals and instantly view predicted future payments based on known renewals

Netformx Pipeline Insight Tool (PIT)

Netformx VIP Calculator in PIT analyzes pre-sales deals and shows:

• Annuity MCV and TCV bonus rebates for the VIP period, by subtrack
• Total analyzed rebate for the VIP period
• Partner status and its uplift value

In addition, PIT shows what the total deal cost will be after discount, adjusted by close date, and VIP period, as well as the Architecture rebates by subtrack. You can drill down to the line-by-line SKUs that apply to your annuity payouts. And even better news is that you can upload your BOM’s with cost information to get insight for your upcoming deals through distribution.

Netformx ChannelXpert

Netformx ChannelXpert analyzes post sales bookings and shows VIP Annuity earnings, by subtrack:

• Whether prerequisites are met
• Whether minimum cumulative MCV requirements are met
• Dollars needed to meet cumulative MCV
• Base rebate for existing subs (MCV)
• Base rebate for Land and Expand, Renewals (MCV)
• Bonus rebate for Land and Expand (TCV)
• Bonus rebate for Renewal (TCV)
• Total rebate

As always, you can drill down to see the detailed factors and items included in the analysis. In addition, you can easily get trending information on your payouts for financial planning.

Grow your annuity business with Netformx

Let Netformx provide the data and insights you need to grow and track your Cisco annuity sales and payouts. I would love to talk Annuity with you and simplify how you can reap these lucrative rebates. Get on the Annuity money train – Whoo Whoo! ALL ABOOAAAARRDD!

Feel free to reach out to me at any time at mike.johnson@netformx.com to talk about VIP or Lifecycle Incentive annuities.

To learn more about Netformx Pipeline Insight Tool and ChannelXpert, you can contact the team at any time at sales@netformx.com.