Net Return in reseller recruitment drive

Net Return -- the exclusive distributor for web-based application software NetSuite -- wants resellers, and has hired Brad Lencken as its new Sydney-based channel manager to drive partner sales.

Stuart McLean, executive director at Net Return, said the company wanted to employ channel partners with vertical market knowledge to sell the software.

NetSuite is a web-based application that provides financials, CRM, purchasing and e-commerce functionality for SMEs. There is no up-front licensing or maintenance fee associated with the software.

A $169 per month small business version was also launched last month.

“We're probably going to pick the verticals and find the appropriate people [companies] in each market. It would be great to have a partner in each state,” said McLean.

The company was also planning to enter the New Zealand market, he said.

McLean added the company saw a good channel in the ISP market. ISPs could package the software with a broadband service for SMEs, he said.

Net Return began selling its NetSuite web-based application software in February, employing mainly a direct sales model in order to get some runs on the board.

Today, it had signed around eight local channel partners to resell and refer the product, the likes of Melbourne-based accounting firm Duval Partners and South Australian Oracle reseller Igatech.

In the first six months since February, 90 percent of the company's sales were procured direct, according to McLean.

Resellers wanted proof that the product would sell before they decided to take it on, he said. “Between February and June we worked out how to sell the product, got to know the [market] niches and have the price/point right,” he said.

Net Return has around 30 customers in Australia and was closing at least three new customers per month. “We're generating 200 leads per month at the moment,” McLean added.

So far, the company has targeted technology companies, wholesale distributors and “any company with a distributed sales force” as target customers. “We go head-to-head against salesforce.com all the time,” McLean said.

The product is generally sold using online direct marketing methods and online demonstrations where companies are able to trial the software for 14 days.
Under its partner model, partners can refer business and Net Return does the selling on their behalf. Once Net Return closes the deal, the partner receives a 10 percent commission.

If the partner does the installation, higher margins could be expected from providing additional services. Reseller partners that train the customer and do the complete installation themselves get a 20 percent discount from Net Return.