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SAP Pledges Referral Fee

SAP will offer eligible partners a one-time fee on new CRM on-demand services if they refer the business to the vendor, a company executive said.

Mike Sotnick, vice president of small and midsize enterprise at SAP America, also left the door open for more channel participation in the future.

Two weeks ago, the ERP giant unveiled a compensation-neutral sales model and said partners could play in accounts with up to $1 billion in revenue. The previous ceiling had been up to $200 million. “Comp-neutral” plans, which pay direct salespeople the same margin whether a sale flows direct or through partners, go a long way toward eliminating channel conflict that can—and usually does—dog enterprise software companies.

Just days after that announcement, SAP followed with news of its new CRM on-demand services, which would only be available from the Walldorf, Germany-based company.

Some characterized this as a two-steps-forward, one-step-back channel move. Sotnick filled in a little more detail: Partners referring customers to SAP’s pay-as-you-go CRM will get a one-time 10 percent referral fee on the total initial sale.

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