Presentation on theme: "AppExchange Partner Program Terms Overview"— Presentation transcript:
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, These documents are available on the SEC Filings section of the Investor Information section of our website atAny 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. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements, except as required by law.But before we get started – first a brief word from our sponsor, the US government…SFDC is a publicly traded company on the NYSE. Our ticker symbol is CRM.If for some reason you cannot read the entire safe harbor statement here, please visit our website.
3 Developing The Next Generation Of Salesforce.com’s Rapid developer of innovation…..path for a new feature e.g. MSFT Exchange...what version to put it in, then IT needs to implement it
6 Joint Sales & Go-to-Market Fueling Partner Success in 2007 Fully Integrating Partners to the EcosystemPartnersAwareness &EducationJoint Sales & Go-to-MarketGeneralMarketingTargetedDemandGenerationIn 2006 – we marketed the AppExchange directory broadly without specific focus on apps/partners.This year, we will enable partners to do targeted demand generation into our customer base and educate our customer facing employees with the goal of joint sales/go-to-market with our top partners.29,000+ Customers
7 Different Ways to Achieve Same Goal Join the Ecosystem to Leverage Economies of Scale AppExchangeDIYImmediate Access to Largest Global Market of On-Demand CustomersLeverage Proven Marketing MethodsWhat would be your cost?Faster Sales CyclesLevel Playing field based on Customer SuccessImmediate On-Demand Credibility (Customers, VC, etc.)Low-cost/High Quality Lead GenerationOngoing Technology Guidance & Support
8 What a Difference a Year Makes Unique programs to drive demand to your apps This YearLast YearN/ADedicated Category LeaderN/ASales Education Roadshows“Top Partner” Matrix eligibility for SFDC Sales teamsN/ATargeted Marketing & Webinars to SFDC Customer baseN/AAccess to Pre-Release AppsN/AN/ASuccess Story Participation
9 Partner Program Levels & Eligibility Democratizing ISV Success AppExchange BasicAppExchange StandardAppExchange Premium1Basic set of services to get started on the AppExchangeEnhanced services to grow your business on the AppExchangeFull suite of programs and tools to support an on-demand business on the AppExchangeELIGIBILITYCustomer Deployments100 Corporate or 10 FieldCustomer Ratings3.8 of 5(Min 20 ratings)Customer Interviews3Scheduled availability in Q3 CY07
10 Partner Program Benefits Programs & Tools for Developer/ISV Success BASICSTANDARDPREMIUMBUSINESS & TECHNICAL SUPPORTBusiness Planning & Acct MgtInitial Review by PSMAnnual Review by PSMQuarterly Review by PSM or Category LeaderDeveloper Edition & API AccessApplication DesignADN + ReviewTACNamed TAC + PMGO-TO-MARKET PROGRAMSAppExchange.com leadsEvent marketing eligibilitySponsored category listingPreferred directory placementIncubator eligibilityJoint PR activitiesTargeted demand generationSalesforce.com AwarenessSalesforce.com Engagement
11 Partner Program Requirements Aligned for Partner Success BASICSTANDARDPREMIUMPartner Referral Fee10%10%25%2Annual Application CertificationRequiredAppLabs Training Seats12Developer Support Packs$Annual Min MDF Commitment3$0$20K$50KSalesforce.com Lead Referrals per Year3 Corporate or 1 Field6 Corporate or 2 FieldReferral 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 salesforce.com events and sponsorship activities per calendar year
12 % First-Year & Ongoing Revenue Complete Set of Programs for ISV Success Pay-for-Performance Referral Fee ModelPartner Program Level% First-Year Revenue1% First-Year & Ongoing RevenueBasic0%Standard (Available Now)10%Premium2 (Scheduled availability in Q3 CY07)25%Optional Add-On ServicesAppStore Checkout (Scheduled availability in Q4 CY07)Orders, Renewals, Invoicing, Collection, Analysis20%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 Leaders Connecting customers and employees with the right app & partnerJudy LoehrSales & MarketingSteve WhiteGEM Accts & FieldMatt PanningSSS & PSADarren CunninghamAnalytics & Data ManagementJeff YoshimuraFinancial Svcs & VerticalsRaghu GnanasekaranBeyond CRM
14 Introducing the AppExchange Partner Matrix Only Standard Partners applyMust meet unique Category Leader criteria by segmentEXAMPLE ONLY
15 Marketing Opportunities for Standard Partners* Preferred AppExchange.com placement for standard partner applicationsTargeted marketing campaigns and webinars6 partner-focused webinars planned for Q2Main stage participation at Salesforce eventsOf course, it must be a great app!* Timing and scope still being determined
16 Includes any deals referred pre-agreement date WHAT deals do I pay Referral Fees on? Standard Partner Program began 2/1/2007Includes any deals referred pre-agreement datePay on any referred deals closing after Effective DateAgreement Effective DateREFERRAL FEEREFERRALAny deal(s) or prospects originated from Salesforce.com via the AppExchange, campaign, event, sales referral or any employee. Referrals effective for 12 months.% 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 opptyCustomer visits AppExchange.com and submits lead infoCustomer makes purchaseNO REFERRAL FEEMarch 1April 1April 25Customer contact attends partner webinar. No oppty.Customer visits AppExchange.com & submits lead infoCustomer makes purchaseTRIGGERS REFERRAL FEEMarch 1June 15July 1
18 HOW long are Referrals active HOW long are Referrals active? Referrals can become “live” opportunities for 12 monthsFebruary 1, 2006January 31, 2007Referral is LIVE for 12 monthsIf customer purchases on….REFERRALJanuary 15, 2007 – FEE APPLIESAny deal(s) or prospects passed from Salesforce.com via the AppExchange, campaign, event, sales referral or any employee. Referrals effective for 12 months.February 15, 2007 – NO FEE
19 HOW do Referrals become Customers? 1ST Customer Purchase from referral triggers “live” OpportunityDate of 1st Referred Customer PurchaseReferral with past 12 monthsCustomer 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 $120You are responsible only for one $12 payment to SFDC for the quarter the contract was signed$120 paid up front * 10% referral= $12Customer Signs Contract for 1 year and pays you $120Pay $12 to SFDC (Net 45)End of QuarterFeb 1March 31May 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 basisThe 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% = $12Customer Signs Contract for 1 year and pays you $10 (for Feb)Pay $12 to SFDC (Net 45) for total ACVCustomer pays you $10Customer pays you $10Customer pays you $10Feb 1March 31April 30May 15May 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 $30Customer Signs new contract for One year starting Q3 and pays you $120Customer Signs contract for Q1 and pays you $30Pay $3 to SFDC (Net 45) for total Q1 ACVPay $3 to SFDC (Net 45) for total Q2 ACVPay $6 to SFDC (Net 45) for total Q3 ACVQ1Q1 + 45Q2Q2 + 45Q3Q3 + 45
23 Scenario 4: Pay as you go Q1 Q2 + 45 Q2 Q2 + 45 Q3 Q3 + 45 The application uses a pay as you go model for example an marketing application where you pay per sentThe customer pays you X per quarter and you pay SFDC 10% of X for that quarterPayments will always be made a quarterly basis for all customers who paid you during that quarterPay $3 to SFDC (Net 45) for total Q1 ACVPay $7 to SFDC (Net 45) for total Q3 ACVPay $5 to SFDC (Net 45) for total Q2 ACVCustomer pays you $30 for applicationCustomer pays you $70 for ApplicationCustomer pays you $50 for ApplicationQ1Q2 + 45Q2Q2 + 45Q3Q3 + 45
24 WHAT about renewals within 1st 12 months WHAT about renewals within 1st 12 months? Pay referral fee up until 12 months for new customer renewalsREFERRAL FEES APPLY DURING 12 MON PERIODNew DealRenewalRenewal DealFebruary 1, 2006January 31, 2007Opportunity is LIVE for 12 months from 1st purchase
25 (Up-sell/Cross-sell) WHAT about add-on deals for new referred customers? Only on NEW and ADD-ON business during 12 month periodREFERRAL FEES APPLY DURING 12 MON PERIODAdd-on Deal(Up-sell/Cross-sell)New DealProf Svc DealRenewal DealFebruary 1, 2006January 31, 2007Opportunity is LIVE for 12 months from 1st purchase
26 WHAT about referred add-on at existing customers WHAT about referred add-on at existing customers? Only on business sourced by salesforce.comSignPartnerAgreementAdd-on Deal(Salesforce.com Sourced)ExistingCustomerAdd-on Deal (You Source)Add-on Deal (You Source)Feb 1, 1995Apr 1, 2007Mar 31 , 2008REFERRAL FEES APPLY DURING 12 MON PERIOD
27 WHAT if I OEM/Resell another product WHAT if I OEM/Resell another product? Pay only on your gross margin for OEM products$1,000Total Revenue from Customer$600OEM Royalty Cost$400Gross Margin on OEMPay Referral Fee on this
28 Do I pay fees on multi-year contracts Do I pay fees on multi-year contracts? Pay only on 1st Year Contract ValuePay Referral Fee onlyon 1st Year Revenue2-year ContractMarch 1, 2006March 1, 2007March 1, 2008
29 WHEN do I pay referral fees WHEN do I pay referral fees? Pay only on deals closed during the quarterReferral fees due (Net 45)End of QuarterReferred Deal X closes 3/1Referred Deal Y closes 3/15Feb 15March 15March 31May 15
30 What if a Customer cancels What if a Customer cancels? Credit back pro-rated fee against future fee paymentsCustomer X contract expires 12/311-Year Referred Deal X closes 1/1Customer X cancels 6/30Jan 1June 30Dec 31Pay Referral Fee forpre-cancellation periodCredit Referral Fee for post-cancellation period against other fee payments in future quarters
31 Customer Purchase Date Payment Due Date to Salesforce.com WHEN do I pay Referral Fees? Self-generated Quarterly reports & PaymentsCalendar QuarterCustomer Purchase DatePayment Due Date to Salesforce.comQ1February 1 – March 31May 15, 2007Q2April 1 – June 30August 14, 2007Q3July 1 – September 30November 14, 2007Q4October 1 – December 31February 14, 2008Send 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
32 COMPARING EBAY & APPEXCHANGE Initial Listing FeeCertification FeeTransaction Fee Upon CloseReferral Fee Upon CloseAd Format FeesSponsoring Marketing EventsSEM/Affiliate Advertising FeesSponsoring Sales Awareness/EducationListing Upgrade FeesAppExchange Sponsored ListingPicture Services FeesPremium ListingSeller Tools monthly FeesDeveloper Support PackseBay Store monthly feePremium Partner Tier (25% referral)eBay UniversityIncubator
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