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Avaya to offer sales incentive to channel partners

Avaya announced at its annual channel partners conference in Las Vegas that the the privately held telecommunications company will offer a growth program in an effort to increase quarter-over-quarter sales.

The channel sales incentive program seeks to expand the Avaya brand into new markets with innovative sales and marketing techniques.

Paolo Del Nibletto explains how the incentive program works in "If a channel partner grows its Avaya business by $100 in the first quarter and $30 of that $100 is in new solutions," he writes. "Then in the second quarter the business jumps to $120 of which $50 is in new solutions the channel partner will be paid on the difference in growth between the quarters, which is $20 amounting to 10 percent of margin. That margin will be then doubled because the channel partners was able to grow the business in new solutions, which also grew by $20 in this scenario."

But Avaya's director of global channel programs, Barat Dickman, warned that such a profit-based incentive could backfire, as success would lead to very large checks being dished out by the New Jersey-based company.

The program reflects the dispute in the incentive industry over the benefits of direct cash incentives versus non-cash rewards.