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May 22, 2007 PowerPoint Presentation
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May 22, 2007

May 22, 2007

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May 22, 2007

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  1. AppExchange Partner Program Terms Overview May 22, 2007

  2. Safe Harbor Statement “Safe harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation and the oral remarks that accompany it contain forward-looking statements the achievement of which involves risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions proves incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make.  All statements other than statements of historical fact could be deemed forward-looking, including any statements concerning new, planned or upgraded services or technology developments, any projections of subscriber growth, earnings, revenues or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief and statements about future customer contracts or future customer use of our services. The risks and uncertainties referred to above include - but are not limited to - interruptions or delays in our service or our Web hosting; our ability to complete and successfully release new and improved versions of our on-demand platform and development environment; our new business model; problems integrating, launching or operating services based on newly acquired businesses or technologies, breach of our security measures; possible fluctuations in our operating results and rate of growth; the emerging market in which we operate; our relatively limited operating history; our ability to hire, retain and motivate our employees and manage our growth; competition; our ability to continue to release and gain customer acceptance of new and improved versions of our CRM service; unanticipated changes in our effective tax rate; fluctuations in the number of shares outstanding; the price of such shares; foreign currency exchange rates and interest rates. Further information on these and other factors that could affect our financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time, including our Form 10-Q for the fiscal quarter ended April 30, 2007. These documents are available on the SEC Filings section of the Investor Information section of our website at Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all.  Customers who purchase our services should make purchase decisions based upon features that are currently available., inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

  3. Developing The Next Generation Of’s

  4. The Circle of On-Demand Success 4

  5. 2007 Apex & AppStore Verticals & Beyond CRM Apps Global Enterprise Adoption Full ISV Spectrum Formal Partner Programs Growing the AppExchange in 2007Platform & Go-to-Market Breakthroughs 2006 AppExchange 1.0 CRM-centric Apps Early US SMB Adopters Smaller ISV Partners Ad-hoc Partnerships

  6. Awareness & Education Partners Targeted Demand Generation General Marketing Joint Sales & Go-to-Market Fueling Partner Success in 2007Fully Integrating Partners to the Ecosystem 29,000+ Customers

  7. Different Ways to Achieve Same Goal Join the Ecosystem to Leverage Economies of Scale DIY AppExchange  Immediate Access to Largest Global Market of On-Demand Customers  Leverage Proven Marketing Methods What would be your cost?  Faster Sales Cycles  Level Playing field based on Customer Success  Immediate On-Demand Credibility (Customers, VC, etc.)  Low-cost/High Quality Lead Generation  Ongoing Technology Guidance & Support

  8. What a Difference a Year MakesUnique programs to drive demand to your apps This Year Last Year  N/A Dedicated Category Leader  N/A Sales Education Roadshows  N/A “Top Partner” Matrix eligibility for SFDC Sales teams  Targeted Email Marketing & Webinars to SFDC Customer base N/A  N/A Access to Pre-Release Apps  N/A Success Story Participation

  9. Partner Program Levels & EligibilityDemocratizing ISV Success • Scheduled availability in Q3 CY07

  10. Partner Program Benefits Programs & Tools for Developer/ISV Success

  11. Partner Program Requirements Aligned for Partner Success • Referral fee % applies to annual committed net revenue for all transactions that occur within 12 months of customer acquisition. • Premium Partners must meet certain eligibility requirements including but not limited to minimum number of successful customer deployments. • Annual Market Development Funds (MDF) consist of events and sponsorship activities per calendar year

  12. Complete Set of Programs for ISV SuccessPay-for-Performance Referral Fee Model • Referral fee % applies to annual contract value for all transactions that occur within 12 months of customer acquisition. • Premium Partners must meet certain eligibility requirements including but not limited to minimum number of successful customer deployments.

  13. Introducing AppExchange Category LeadersConnecting customers and employees with the right app & partner Judy Loehr Sales & Marketing Steve White GEM Accts & Field Matt Panning SSS & PSA Darren Cunningham Analytics & Data Management Jeff Yoshimura Financial Svcs & Verticals Raghu Gnanasekaran Beyond CRM

  14. Introducing the AppExchange Partner Matrix • Only Standard Partners apply • Must meet unique Category Leader criteria by segment EXAMPLE ONLY

  15. Marketing Opportunities for Standard Partners* • Preferred placement for standard partner applications • Targeted email marketing campaigns and webinars • 6 partner-focused webinars planned for Q2 • Main stage participation at Salesforce events • Of course, it must be a great app! * Timing and scope still being determined

  16. WHAT deals do I pay Referral Fees on?Standard Partner Program began 2/1/2007 Any deal(s) or prospects originated from via the AppExchange, campaign, event, sales referral or any employee. Referrals effective for 12 months. Includes any deals referred pre-agreement date Pay on any referred deals closing after Effective Date Agreement Effective Date REFERRAL FEE REFERRAL % of Annual Contract Value of any referred opportunity for 12 months beginning with 1st customer purchase.

  17. WHAT ISN’T a Referral?No referral if oppty is already in your pipeline within past 60 days Partner cold calls customer contact & establishes pipeline oppty Customer visits and submits lead info Customer makes purchase NO REFERRAL FEE April 1 March 1 April 25 Customer contact attends partner webinar. No oppty. Customer makes purchase Customer visits & submits lead info TRIGGERS REFERRAL FEE June 15 March 1 July 1

  18. HOW long are Referrals active?Referrals can become “live” opportunities for 12 months Any deal(s) or prospects passed from via the AppExchange, campaign, event, sales referral or any employee. Referrals effective for 12 months. February 1, 2006 January 31, 2007 Referral is LIVE for 12 months If customer purchases on…. REFERRAL January 15, 2007 – FEE APPLIES February 15, 2007 – NO FEE

  19. HOW do Referrals become Customers? 1ST Customer Purchase from referral triggers “live” Opportunity Date of 1st Referred Customer Purchase Referral with past 12 months Customer Opportunity is now “live” for 12 months – Referral fee applies during this period

  20. Scenario 1:Customer signs to one year contract • In this example the Customer signs a one year contract and you are paid up front for the entire year- a total of $120 • You are responsible only for one $12 payment to SFDC for the quarter the contract was signed $120 paid up front * 10% referral= $12 Customer Signs Contract for 1 year and pays you $120 Pay $12 to SFDC (Net 45) End of Quarter Feb 1 March 31 May 15

  21. Scenario 2:Customer signs to one Year contract w/ Monthly payments • Your customer signs a ONE YEAR Contract and agrees to pay you on a monthly basis • The contract is still for a one year term and you will pay SFDC only one payment of $12 for the Quarter the deal was closed $10 per month= $120 * 10% = $12 Customer Signs Contract for 1 year and pays you $10 (for Feb) Pay $12 to SFDC (Net 45) for total ACV Customer pays you $10 Customer pays you $10 Customer pays you $10 Feb 1 March 31 April 30 May 15 May 31

  22. Scenario 3:Customer signs to one Quarter contract w/ Quarterly Payments • The customer initially signs a contract for a term of one quarter. They then extend your service for another quarter and finally renew for an entire year. • The opportunity is alive for one year after signing the initial contract. This means that any renewal contracts are paid in the quarter they are renewed. • The payment is always attributed to the quarter the contract is signed. • In this example, the contract is renewed for one year but the opportunity is only alive for 6 more months. You would pay SFDC only half of the contract value for the six months remaining in the live opportunity. Customer Signs new contract for Q2 and pays you $30 Customer Signs new contract for One year starting Q3 and pays you $120 Customer Signs contract for Q1 and pays you $30 Pay $3 to SFDC (Net 45) for total Q1 ACV Pay $3 to SFDC (Net 45) for total Q2 ACV Pay $6 to SFDC (Net 45) for total Q3 ACV Q1 Q1 + 45 Q2 Q2 + 45 Q3 Q3 + 45

  23. Scenario 4:Pay as you go • The application uses a pay as you go model for example an email marketing application where you pay per email sent • The customer pays you X per quarter and you pay SFDC 10% of X for that quarter • Payments will always be made a quarterly basis for all customers who paid you during that quarter Pay $3 to SFDC (Net 45) for total Q1 ACV Pay $7 to SFDC (Net 45) for total Q3 ACV Pay $5 to SFDC (Net 45) for total Q2 ACV Customer pays you $30 for application Customer pays you $70 for Application Customer pays you $50 for Application Q1 Q2 + 45 Q2 Q2 + 45 Q3 Q3 + 45

  24. WHAT about renewals within 1st 12 months?Pay referral fee up until 12 months for new customer renewals REFERRAL FEES APPLY DURING 12 MON PERIOD New Deal Renewal Renewal Deal February 1, 2006 January 31, 2007 Opportunity is LIVE for 12 months from 1st purchase

  25. WHAT about add-on deals for new referred customers?Only on NEW and ADD-ON business during 12 month period REFERRAL FEES APPLY DURING 12 MON PERIOD Add-on Deal (Up-sell/Cross-sell) New Deal Prof Svc Deal Renewal Deal February 1, 2006 January 31, 2007 Opportunity is LIVE for 12 months from 1st purchase

  26. WHAT about referred add-on at existing customers?Only on business sourced by Sign Partner Agreement Add-on Deal ( Sourced) Existing Customer Add-on Deal (You Source) Add-on Deal (You Source) Feb 1, 1995 Apr 1, 2007 Mar 31 , 2008 REFERRAL FEES APPLY DURING 12 MON PERIOD

  27. WHAT if I OEM/Resell another product?Pay only on your gross margin for OEM products $1,000 Total Revenue from Customer $600 OEM Royalty Cost $400 Gross Margin on OEM Pay Referral Fee on this

  28. Do I pay fees on multi-year contracts?Pay only on 1st Year Contract Value Pay Referral Fee only on 1st Year Revenue 2-year Contract March 1, 2008 March 1, 2006 March 1, 2007

  29. WHEN do I pay referral fees?Pay only on deals closed during the quarter Referral fees due (Net 45) End of Quarter Referred Deal X closes 3/1 Referred Deal Y closes 3/15 March 15 Feb 15 March 31 May 15

  30. What if a Customer cancels?Credit back pro-rated fee against future fee payments Customer X contract expires 12/31 1-Year Referred Deal X closes 1/1 Customer X cancels 6/30 June 30 Dec 31 Jan 1 Credit Referral Fee for post-cancellation period against other fee payments in future quarters Pay Referral Fee for pre-cancellation period

  31. WHEN do I pay Referral Fees?Self-generated Quarterly reports & Payments Send referral report (download report off the AppExchange) with payment to Report and payment is due 45 days after the calendar quarter end. Payment Methods accepted: Credit Card or Wire Transfer