Attention: Sage Mid-Market Partners

We represent a group of Sage Mid-Market partners that have proudly sold and serviced Sage products for many years. While Sage has made many positive advancements in developing products and supporting them, the new Tier Level Calculation change is not a positive change for Sage partners. 

The petition will read as follows:

We, the Sage Mid-Market Partner group ask that Sage Inc. reconsider the proposed Tier Level Calculation changes to be effective on April 1, 2012.

On October 20th, 2011 Sage announced new Tier Level movement changes, effective April 1, 2012, that will make it more difficult to maintain tier levels. Whereas, with the current tier calculation method, a partner's tier level could increase four times a year but decrease only twice a year, the new policy would increase the chance of a decrease to four times a year. This change will result in some partners losing 10% margin on sales and 5% margin on Customer Care commissions. This new policy comes on the heels of other changes introduced by Sage to its partners over the last 5 years such as:

·         Introduction of “new license” revenue as a requirement to keep tier levels, introduced during the biggest downturn in the North American economy since the great depression

·         Reduction of Software Assurance margins for most partners from 35% to 20% since margins were based on renewal revenue and now it’s changed effectively to “new license” revenue

·         Offering of low or no cost training directly to clients – taking away parts of this revenue stream

·         Offering of low or no cost support– taking away parts of this revenue stream

·         Changing from yearly to semi-annual tier down calculations

During these tough economic times, it would be in everyone's best interests to make it easier, and not harder, for partners to maintain their tier levels. Therefore, it is incumbent on all Sage mid-market partners to request that Sage reconsiders this proposed change to the Tier Level Calculation.