SIIA Channels Webinars:

“Building a Sales Compensation that Works”

Moderator:
Lincoln Murphy, Managing Director, Sixteen Ventures
Panelists:
Liz Cobb, General Manager, Small and Medium Business Solutions, Xactly
Corporation
Jeff Honeycomb, SVP, Sales, OpenAir, a NetSuite Company
Guy Shani, VP, Sales, Clarizen
 “SIIA pioneered the government cloud computing dialogue with its
SaaS Gov conference. Now in its fourth year, the SIIA conference has
consistently attracted top government speakers, cloud computing
experts, and public sector customers to show how government
agencies can take advantage of the cloud…”
-Daniel Burton, Senior Vice President, Global Public
Policy, Salesforce.com

SIIA & INPUT Members: $495

Non-Members: $695
Gov IT Purchasers (with Fed ID): Free

http://www.siia.net/saasgov
 Medium-sized, EBITDA-positive companies are
invited to apply to present before an audience of
middle-market-focused senior lenders, private equity
investors, and strategic partner prospects.

Deadline to Present: 1/29/2010

March 3, 2010
New York City
 www.siia.net/aatc
SIIA OnDemand & OpSource SaaS Summit have joined forces to bring you…

All About The Cloud

May 10-12, 2010
The Westin St. Francis, San Francisco, CA
SIIA Channels Webinar Host

Lincoln Murphy
Managing Director
Sixteen Ventures
(972) 200-9317
http://sixteenventures.com
http://twitter.com/lincolnmurphy
 Jeff Honeycomb

SVP, Sales
OpenAir, a NetSuite Company
Jhoneycomb@openair.com
P: +1.617.351.0286
© Copyright NetSuite Inc., All Rights Reserved.
Serving the High Growth Segment of the Market

Worldwide SaaS Revenue

($ in billions)

32.2%
CAGR

Source: IDC, July 2007.

Cloud Computing Services

Value Added Services

Source: TSIA # of providers offering services

Partnering Value Proposition
Increased value to your customers
Delivering expertise to core business problem
Differentiation

True Recurring Revenue

Aggressive 1st year margins; flat, 30% on future renewals for life of customer

New Business margin based annual License Revenue sold:

$100,000-$250,000 30%
$250,000-$499,999 35%
$500,000-$749,999 40%
$750,000-$1M 45%
>$1M 50%
Significant services attach rate
Implementation, training and value realization

Services will increase retention rates and secure revenue stream

 Can Cloud Computing be profitable for a Partner?

Vendor Average Seat Margin Year Margin Year Margin Year

Price One Two Three*
Microsoft Dynamics $1,500 $750 (50%) $0 $0
and Sage
ERP VENDORS

NetSuite $1,200 $360 (30%) $360 (30%) $360 (30%)

* CONTINUES FOR LIFE OF CUSTOMER

Go to Market Strategy

Requirement for Fast growth vendors

Market coverage
Geography
Segment

Services Capacity

Domain Expertise
 Liz Cobb

General Manager
Small and Medium Business Solutions
Xactly Corporation
P: +1.408.207.9563
www.xactlycorp.com/express
SIIA Channels Webinar –
1/27/10
Liz Cobb, GM SMB Solutions
lcobb@xactlycorp.com
XACTLY – THE SMART INCENTIVES
COMPANY
Leader in SaaS sales performance management
Fastest Growing
Strong domain experience
Managing >$4 billion in compensation annually
Compensating Channel Sales

Avoid channel conflict

Credit all roles that need to work together
Measure real sales…to end customers
Model costs before rolling out plans…and
get it right
Avoid the Train Wrecks – 2000
And There are Many…

Computer Associates
2006 underestimated by $70M plus
Missed corporate filing deadline
Key executives fired
Unnamed High Tech
VP Sales “stuffed the channel”
Company lost ~$8M in unsold inventory
Complex Credit Assignment With Channels

High Tech Company Channel Partners

Distributors
Sell to:
Resellers
Sell to:
End Credit option if
Users
data from
End End
Resellers is Users Users
reliable

Quality of data goes down with each level

 Sales
Sales
Commission Management
Xactly Incent

Speakeasy Aligns Sales Team with Corporate Objectives, Enhances Sales

Productivity and Ensures Compliance using Xactly Incent on Appexchange

Challenge
“With Xactly Incent, we can now With more than 60 sales representatives—evenly split between
use variable compensation to direct and channel sales—fast-growing Speakeasy found itself
quickly outgrowing its sales compensation management system.
closely dovetail sales efforts with Excel was not scalable, there was no visibility to the sales team and
there were many errors.
corporate goals and objectives. In
short, we’re able to now ‘pull the
sales team into the program’ Solution Results
because they can see for Implement Xactly
Incent with minimal IT
Increased profits by
driving sales to sell
themselves precisely how the plan involvement in 1
month
higher profit products
by incenting the
works.” Xactly Incent behavior
integrated with Enhance sales
Salesforce.com to productivity
Andy Hyde provide the ability to: Align corporate goals
Chief Financial Officer Design comp and sales objectives
Speakeasy plans Low cost of ownership
Implement new SOX compliance
plans
Sales rep trust and
Manage and confidence in finance
audit
compensation
payout
Eliminate
errors
CLIENTS
CLIENTS
CLIENTS

…and more
Contact info:
Liz Cobb
GM SMB Solutions
408.207.9563
www.xactlycorp.com/express
 Guy Shani

VP, Sales
Clarizen
Guy.Shani@clarizen.com
Copyright © 2007-2009, Clarizen Inc. All Rights Reserved
 About Clarizen
Leading collaborative project execution smd work management
platform
SAAS model, no set up or installation
Founded August 2005
400+ global customers
Backed by Benchmark Capital , Carmel Ventures and DAG
Ventures.

Copyright © 2007-2009, Clarizen Inc. All Rights Reserved

 Partners program objective:
To extend the reach to qualified prospects by building win-win
partnerships with companies that can introduce Clarizen to their
customers mainly in territories where Clarizen’s inside sales reps do
not cover.

To enable customers that requires assistance with Project

Management methodologies and services to get CLARIZEN
consulting expertise

To establish a framework through which Partners could publish their

best practices

Copyright © 2007-2009, Clarizen Inc. All Rights Reserved

 Current partners coverage
Regional:
Responsibilities:
Localization
First line support
Local sales and marketing.
Latin America, Japan , China and Taiwan, Germany
In process –
strategic partnership in North America for professional services and
best practices exchange
Referral program and Clarizen Teaming Partners.
Partners compensation
40% -50% for regional partners.
10%-20% for referral partners.
Fix fee for Clarizen Teaming Partners

Copyright © 2007-2009, Clarizen Inc. All Rights Reserved

 Inside sales objective and compensation
Follow up on all inbound leads in North America and English
speaking countries.
Paid on CCV (Committed Contract Value) only for new seats and
expansion only
Monthly quota with Quarterly targets.

Copyright © 2007-2009, Clarizen Inc. All Rights Reserved

 Inside sales and Channel:
very little overlap in non English speaking territories.
In North America – we offer double commission for referrals and
channel only compensation on direct var efforts.

Copyright © 2007-2009, Clarizen Inc. All Rights Reserved

 Q&A
Lincoln Murphy Liz Cobb
Managing Director General Manager, Small and Medium
Sixteen Ventures Business Solutions
P: +1.972.200.9317 Xactly Corporation
http://sixteenventures.com
http://twitter.com/lincolnmurphy P: +1.408.207.9563
www.xactlycorp.com/express
Guy Shani
VP, Sales
Clarizen
Jeff Honeycomb
Guy.Shani@clarizen.com
SVP, Sales
OpenAir, a NetSuite Company
Jhoneycomb@openair.com
P: +1.617.351.0286