Nortel Incentive Program

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Nortel Incentive Program

Nortel has introduced new incentive programs for its channel partners in North America that focus on VoIP, data and applications. The Velocity Incentives program is an addition to Nortel's Partner Advantage program, and it's designed to drive Nortel and partner profits up while also layering on incremental marketing funds and increased growth rebates for partners that sell IP telephony, data and applications products.

"That's where the growth is today. That's where the demand is," said Jeff Taylor, director of North American field marketing at Nortel Networks. "The impetus behind this is ultimately to serve our customers and where our customers are going."


The overall Nortel strategy over the last couple of years has been around IP telephony, data and applications, and that's reflected in the types of products that Nortel is bringing to market, Taylor added.
"As part of that, we wanted to create as suite of incentives to make it easier for our partners to address those customer needs in, frankly, a more profitable way," he said.

Nortel said the program offers partners the chance to increase profitability, decrease equipment costs and realize greater overall rewards in the Partner Advantage program by focusing on selling Nortel converged solutions. There are four core benefits for partners that are eligible for the Velocity Incentives program.

First, partners can earn marketing allowance funds. Nortel has had marketing funds in the past, but they were accrued on a flat rate for all products in all categories, Taylor said. With the new program, the accrual rate is increased for IP telephony sales, so while the marketing allowance funds are still available on other Nortel products, a partner can earn more by selling IP telephony products.

Nortel is also offering its partners growth rebates. Although Nortel has had a growth rebates program in the past, the rebates were calculated based on a certain percentage at the end of the year. Like the marketing allowance funds, the rebate percentage was the same across the board. Now Nortel has put in a series of multipliers on rebates for IP telephony, data and applications products, even the company is still recognizing growth in all areas, Taylor said. Partners that sell IP telephony, data and applications products will get larger rebates at the end of the year for their growth, he said.



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