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SAGE NONPROFIT OPS TO GO DIRECT

sagelogoSage is going to sell its not-for-profit accounting and fundraising packages via the direct channel. While the company says it will continue to support resellers as the primary channel, “We will also be adopting alternate sales channels as appropriate,” according to a notice to resellers from NPS Sales management about changes in sales policy for 2012.
That includes areas in which there is not a Sage reseller. Then the communication leaves a fairly wide door open for doing the same “at the specific request of a customer or prospect, or where the environment or requirements are best suited to be addressed by the vendor.” In addition, Sage is uncoupling the Fund Accounting and Fundraising applications so that sales of one do not apply towards margin or tier for the other product. The company also plans to start enforcing sales minimums and required certifications. It said the sales minimums have not be enforced for the “past few quarters.” The initial reseller reaction is not a happy one. According to one VAR, “Our opinion is that Sage is making these policy changes to cover up ineffective portfolio management (lack of product investment) and a lack of channel leadership which has resulted in a decline in unit volume.” And this person read that on sentence the same way I did: "The last clause essentially gives Sage carte blanche to work any lead as a direct sale with very little justification." The Sage reaction was somewhat generic, noting that it was enforcing rules that were already in place. In a prepared statement, Krista Endsley, GM for Sage Nonprofit Solutions said, "The role and importance of our partner channel have not changed. We will continue to invest in and support their businesses. We will also continue to diversify our distribution and use all possible avenues to reach our market."
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