And that makes it more difficult for smaller VARs to maintain their channel status. We have seen story many times with other vendors who want a smaller number of larger and more accomplished resellers. “At this point, it would be impossible for a company of less than 10 people to meet the reseller requirements,” noted one relatively new dealer.Another says it is harder to obtain the top margins. “Our 50 percent margins are down to 30 percent, and it is almost impossible to get to 50 percent unless you are large volume partner,” said another. Bigger is better the VAR world. “Everyone wants bigger partners,” notes CJ Boguszewsk’s Acumatica’s VP of partner and channels. While he says 74 percent of resellers have qualified for tap margins, he acknowledges it organizations need at least six people to obtain the number of badges needed to achieve the gold level. Acumatica must have larger VARs to remain competitive. Some early Acumatica VARs, who had carried Solomon, have fallen off the Top 100 rankings because their growth hasn’t kept pace with the leaders. There were only five Acumatica resellers in the top 30 of Bob Scott’s Top 100 VARs for 2022, none in the Top 10. The new requirements are fine with yet another dealer who said, “They were too generous to start with their margins/partner program. Many of the partners signed up just to check a box and have not fully committed to the solution as their main product.” For Net at Work, the top-ranking Acumatica VAR at No. 11 on this year’s Top 100 list, the program represents opportunity. The tougher requirements are good, according to co-founder Alex Solomon. And the firm continues to look for M&A candidates. “I want smaller partners who want to join a larger organization to come our way,” he said.
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ACUMATICA CHANGES PRESSURE SMALL VARS Featured
In January, Acumatica said it was eliminating its Silver certification level, requiring all resellers to qualify for the Gold level. That requires increased training by, requiring them to achieve more badges.