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AVALARA CHANGES CHANNEL INCENTIVES Featured

Pascal Van Dooren,  Avalara Avalara is increasing the commission its channel members can earn on business referred to the sales-and-use tax company. The company is keeping the rewards front-reward based on input from the channel. "The overwhelming feedback from our partners was that they wanted more upfront, and cared much less about recurring amounts which were too small and too far out in the future," says Pascal Van Dooren, EVP of marketing and sales for the Bainbridge Island, Wash.-based company.

Not everyone saw it this way. Korey Lind, owner of Elmwood Park, N.J.-based Third Wave Business Systems,  commented that "They have actually reduced the commission because they got rid of the recurring revenue." Partners, Lind continued, wanted to get faster payment because Avalara wanted until the end of the quarter to calculate commissions, took three months to pay, calculated wrong and then didn't often didn't pay recurring amounts. Her assessment was that Avalara is "doing nothing but continuing their partner unfriendly practices." From the official description, VARs continue to receive a 20-percent base commission rate of first-year sales made to client they refer to the vendor. They can now receive an additional 20 percent if they get three new customer wins and $25,000 in net commissionable revenues in a calendar year in lieu of recurring commissions. Avalara also sweetened the program by making the channel eligible for commissions on Avalara 1099s, Avalara returns activation fees, and professional services, such as nexus studies, tax registration services. The company has decided to pay on a monthly instead of a quarterly basis. These terms apply only to sales made through Avalara, not to those made through OEMs such as Sage and Epicor.

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