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© 2014 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Level 3 Channel Partner Program – Rules of Engagement Effective Feb. 1, 2015
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© 2014 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 2 New Rules of Engagement Effective February 1, 2015, we implemented new Rules of Engagement for our combined Channel Program, which cover our legacy tw telecom and Level 3 Channel Partners. As a company and as a program, we did significant research with our Advisory Board, current Partners and other industry programs to determine the best go- forward process for our sales teams to work together. We are confident the 2015 Rules of Engagement will promote growth for our customers, our Partners and Level 3 and will also enable customers to purchase services in the way best suited to their needs. Key Components: Protected Customer Lists Channel Integration Policy Deal Registration Channel Integration
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© 2014 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 3 Protected Revenue: Renewing revenue that your sales channel did not originally sell is prohibited Using existing revenue not sold by your sales channel to negotiate for new services and waiving ETLs will not be supported Multiple sales channels are not permitted to sell sites to a common customer with a single VRF (examples: VPNs, Converged Services, etc.) Once customer networks are out of term, “technology refreshes” are available to all sales channels. For example, if the customer originally purchased a PL network via the Indirect channel—and that network is out of term—the Direct sales team can sell a new MPLS solution 1. Customer Protection: North America enterprise customers will not be protected from the Direct or Indirect sales channels; however, existing revenue will be protected for the sales channel that originally contracted the service/revenue. Government and Wholesale accounts remain protected from other sales channels and can only be worked in conjunction with the assigned account teams via approved Teaming as an ICB. Additionally, enterprise accounts within GAM are subject to approved Teaming in all circumstances.
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© 2014 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. Opportunity based or <$100k MRR Approval required at GM and Senior Director Indirect Sales levels (or comparable level for other sales channels) Account based or opportunity based >$100k MRR Approval required at RVP and Indirect VP levels (VP for other sales channels) 4 2.Channel Integration/Teaming: We will continue to have a Channel Integration/Teaming policy but are shifting toward a value-based approval process where all teams agree in advance to work together to solve a customer’s business needs. We will adopt the Level 3 form/email-based approval process going forward All previously approved Teaming opportunities will be honored GAM Customers: Effective April 1, 2015 Teaming is required in all scenarios Existing accounts managed via a partner will not be restricted from teaming New opportunities will be permitted on an approval basis from GAM
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© 2014 Level 3 Communications, LLC. All Rights Reserved. Proprietary and Confidential. 3. Registration: The legacy tw telecom Indirect program had a registration policy based on opportunity types for enterprise customers. Going forward, we are eliminating the registration process in its entirety. The Level 3 program supports a customer decides or “ink wins” policy. This applies to all opportunities (new or existing customers) across all NA sales channels. 4. Channel Conflict: If there is channel conflict identified, please roll up your concerns to your channel manager (CM) for review. Once the CM has confirmed that competing proposals have been requested by the same customer, the CM is to engage his or her Senior Director - Indirect Sales and Commercial Services Team (CSG) for support. The CSG team will confirm that the solutions being requested are “like for like” –If they do not match, this will not be viewed as a competitive situation –If they do match, CSG will agree on a set proposal and price that cannot be modified by either sales channel The same proposal will be delivered to both teams and it is up to the customer to decide which sales channel they prefer to work with. 5
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