Microsoft to launch LAR deal registration later this year

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Microsoft to launch LAR deal registration later this year

Microscope contributor

Microsoft is introducing deal registration for LARs worldwide later this year with the lion's share of fees shifting to partners that identify and manage leads, even if they do not ultimately transact the business.

According to channel insiders, 75% of the sales rebates will be dished out to the LAR that generates the deal to reduce incentives for partners coming in at the eleventh hour to snatch the order on price.

This is the first time that Microsoft has instated a permanent deal registration process for LARs "as an integral part of our compensation scheme", said Edward Hyde, channel sales manager at the software kingpin.

"Somebody runs with the opportunity, does everything that is right for the customer and the vendor and just at the moment the customers places the order there is a bit of shopping around and someone else snaps up [the deal] at a lower price," he said.

Deal registration is one part of a series of sweeping changes Microsoft is introducing from the autumn, which will see fees paid to LARs for major account business slashed.

Hyde said the scheme would not lock out rivals from competing on deals as some customers, including public sector organisations, may have to put business out to tender to meet governance requirements.

"What we do not want is that the proactive partner that has lined up with us to support our efforts and drive the solution to the customers goes unrewarded," he added.

The move has been well received by LARs with one claiming that most of the margin will now be funnelled in the correct way. "This should drive the right behaviour and cut out rivals trying to win on price," he said.

Hyde said he could not provide a definitive answer as to why Microsoft had not previously launched deal registration but added that the money to fund the scheme was being "assigned from the existing budget".


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