Cisco Offers e-Agent Program to Capitalize on Solution Sales

By Tara Seals

Posted: 05/2002

Cisco Offers e-Agent Program to Capitalize on Solution Sales

By Tara Seals

AS APPLICATIONS DRIVE INTERNET and IP usage, Cisco Systems Inc. has expanded its channel program to services partners with the “e-agent” program.

The e-agent program is an initiative to attract partners in the United States that can bring full solutions to customers, including telecom and services options. The program has no volume requirements and is not a resale model. Services partners simply bring the customer and get paid a commission. In addition, potential e-agents must get trained in one or more specialization areas with Cisco, and must have at least three Cisco-certified employees.

The company’s specialization pyramid for all partners has, in descending order, gold, silver and premier tiers, each with different training levels. The authorized resellers are under the premier tier with no specialization requirements. Partners must specialize in such areas as wireless LANs, IP telephony and VPNs to sell those solutions. As a partner moves up the pyramid, it has greater access to Cisco support, better margins or commissions and more training. e-agents must achieve at least premier level to participate.

The agent owns the customer and negotiates fees with the customer. Cisco offers a sliding scale for commissions, which depends on how close to list price the e-agent sells the product and to which tier of certification the partner belongs. Cisco keeps 1 percent of the difference between list and sale prices, and agents get a certain percent of the margin.

Although the setup has some of the hallmarks of a resale model, the e-agent program requires no stocking or up-front purchasing of products and services. The agent “nominates” a customer to Cisco, and Cisco performs a credit check. If the company accepts the customer, Cisco confirms the details and ships the product or provides service for the customer directly.