Compensation Models

Channel-friendly cloud service providers give partners the opportunity to resell cloud and receive compensation that makes sense for their business. For agent partners used to subscription-based services, these partners can be paid out in a monthly recurring model. For partners that are used to receiving one large payout, some cloud service providers will work with these partners and pay them in a similar fashion or offer a "hybrid" compensation model for those looking to get into recurring revenue.

"We give [VAR partners] the opportunity to ratchet back into being a large, lump sum payment up front if they take less of the residual over time. They can ratchet it down over time. Basically, they get a stepping program," Evolve IP's Kinka (pictured) explained. "[These partners] will make less money over time on the business where they’re taking the up-front payment, but they can at least bridge the gap a little bit. They can ratchet their way in."