Jamcracker Dredges a New Channel

  • Written By: A. Turner
  • Published: August 9 2000

Jamcracker Dredges a New Channel
A. Turner - August 9, 2000

Event Summary

In July, Jamcracker, Inc. announced its integrated Channels Program. The company's approach to the channel brings together a community of business technology service providers to complement Jamcracker's direct sales force.

Jamcracker also announced its Channels Advisory Council, made up of executives from selected companies in Jamcracker's target channel market. The Council was instrumental in creating Jamcracker's channel programs and will help the company evolve its channel strategy to best serve partners and customers.

About the Jamcracker Channels Program

The Jamcracker Channels Program can help channel members achieve increased sales opportunities and lower cost of customer acquisition through sales and technical training and marketing programs. The program helps a variety of companies - from venture capitalists to systems integrators - present a more competitive, integrated solution to their customers, which they can complement with ongoing consulting services.

In addition, Jamcracker has teamed with Channel Automation, Inc. to create a tailored, collaborative online workspace that partners can use to effectively manage their relationships and drive incremental demand through indirect channels. The workspace combines partner relationship management (PRM) functionality with demand creation tools, enabling Jamcracker and its channel partners to use activity-based dynamic profiling to provide channel managers snapshots of their channel activity.

The Jamcracker Channels Program consists of three partnership levels:

  • Jamcracker Explorers

  • Jamcracker Sales Certified Pioneers

  • Jamcracker Premier Certified Pioneers

Jamcracker Explorers: Independent consultants, venture capitalists, business financial consultants, ASP business partners and workplace consultants who participate in basic Jamcracker sales training will receive a commission for every qualified sales lead that purchases Jamcracker services.

Jamcracker Certified Pioneers: E-business consultants, systems and solutions integrators, value added solutions providers, and telecommunications companies who achieve advanced Jamcracker sales certification are paid a premium commission on sales of Jamcracker services. Certified Pioneer program members are responsible for maintaining and growing customer relationships, while Jamcracker handles 24x7 technical support for all customers. The program is divided into two tiers:

  1. Sales Certified Pioneers are channel partners who are trained and certified to sell Jamcracker services. They do not provide implementation or integration services. By participating in additional sales and technical training, and making a commitment of technical resources, they can become eligible for Premier Certified Pioneer status.

  2. Premier Certified Pioneers are channel partners who have completed advanced training so they can sell and implement Jamcracker services. Following systems engineering training, Premier Certified Pioneers work with Jamcracker to create an internal Jamcracker Practice, made up of dedicated resources that sell and assist in the implementation of Jamcracker services. Premier Certified Pioneers can also earn additional incentives for driving incremental customer revenues.

Designed for the Channel, by the Channel

The Jamcracker Channel Advisory Council, formed in June 2000, was created to advise Jamcracker on how to structure partnership contracts and compensation models. Representatives from a number of Jamcracker Channel Partner companies are seated on the Channels Advisory Council.

Market Impact

One benefit of an indirect sales model is that it allows a company to expand into territories and/or vertical markets previously untapped or inaccessible by a dedicated sales force. The trade off is a slightly lower margin on products or services with the hope of increased volume.

Application Service Providers are faced with a few basic choices regarding indirect sales strategies. Build their own, create partnerships/alliances with an existing channel, or identify a mix of the two. Large companies such as SAP and IBM can simply leverage their existing sales network to implement new goods and services. Recent ASP arrival, ManagedOps.com is leveraging GreatPlains reseller network to promote their services. While Agilera is delivering their service through equity partners Verio and Ciber.

Jamcracker's approach represents a necessary effort to address the sales and expansion needs of their company. Positioned and supported correctly, their efforts may help propel higher revenues. As their initiative and reseller base is virtually brand new we are unable to predict their level of success.

User Recommendations

Companies considering outsourced HR management, expense tracking and/or sales automation tools may benefit as a reseller/consultant near them may be certified to sell or implement Jamcracker's solution. As the ASP market is burgeoning, we recommend users consider the options of several ASP's before making a commitment.

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