Bionic seeks to partner with consultants and local representatives to help media buying teams to implement better media investment management systems.
Bionic Advertising Systems (“Bionic”) is a software company that provides web-based workflow automation software for media planning, media buying, and marketing performance management which is purchased as monthly subscription to the service (the “Bionic Service”).
The Bionic Service is often implemented as part of a corporate initiative to improve operational efficiency, marketing performance, or both. These are complex projects that require strategic planning, project management, and custom systems integration work. This is the type of project that is ideal for specialized consultants. However, Bionic does not provide consulting services.
The Bionic Service is internationalized and can be used around the world. Customers often prefer local representatives that are available during business hours and understand the customs and the market. However, as a company based in Hanover, New Hampshire, USA, Bionic has difficulty serving these customers because of time zone and cultural barriers.
In order to provide clients with a complete solution and high levels of service, Bionic seeks to partner with specialized consultants and local representatives (collectively “Partners”), who will assist mutual customers with buying and implementing the Bionic Service through a Value-Added Reseller (VAR) program called the Bionic Solution Partner Program. The responsibilities and terms of this program are outlined below.
Responsibilities and Terms
- Partner Training. Bionic will train Partner with Bionic software and will provide Partner with a training account.
- Partner Support. Bionic will provide Partner with priority customer support.
- Partner Access. Bionic will provide Partner with access to the Bionic Service for training and demonstrations.
- Partner Advertising. Partner will be listed as a “Solution Partner” on the Bionic website.
- Sales Leads. Bionic will supply Partner with exclusive sales leads at Bionic’s discretion.
- Exclusive Sales Leads. To avoid channel conflict and to ensure commission, Partner will register sales opportunities with Bionic. If not already assigned, Bionic will assign exclusive ownership of that opportunity for a minimum of six months.
- Sales Contract. Partner will direct Customer to Bionic to obtain Bionic Service contracts.
- Mutual Customer is a Customer which has designated Partner as the Partner of Record. This designation happens automatically when Partner has secured the Sales Contract from Customer. Customer may choose to un-designate Partner as the Partner of Record, in which case Customer is no longer considered a Mutual Customer.
- Customer Account Setup. When a Sales Contract is received, Bionic will set up the Customer account on the Bionic system.
- Customer Training. Partner will be the primary provider of training to Customer. Bionic will provide standard training materials and serve as a backup on training.
- Customer Support. Partner will provide Customer with first level support. Bionic will provide second level support and the support infrastructure.
- Quarterly Customer Health Report. Within 15 days of the end of each calendar quarter, Partner will provide Bionic with a Customer Health Report for each Customer.
- Consulting and Implementation Services. Partner may provide – in fact, is encouraged to provide – strategic advice, project management, custom integrations, training, support, and other consulting services. Such work will be contracted between Partner and Customer. Bionic will not be party to this agreement and will not be liable in any way for services outside of Bionic Service.
- Customer Relationship. In the case of a Mutual Customer, Partner will be primary contact with Customer. However, Bionic will also maintain a direct contact for customer support, maintenance, marketing communications, billing, collections, and other activities.
- Billing and Collection. Bionic will be responsible for billing and collection for Bionic Service. Partner will be responsible for billing and collection for its services outside of Bionic Service.
- Bionic Service Level Agreement. Bionic will be responsible for delivery and maintenance of the Bionic Service under its standard service level agreement.
- Non-Exclusivity Relationship. This is a non-exclusive relationship. Bionic is free to contract with other Partners. Partner is free to contract with other software vendors.
- Confidentiality. All Customer information is confidential. Unless otherwise designated, information shared between Partner and Bionic is confidential.
- Commission Payments. Partner will be paid a commissions based on Eligible Receipts. See below for Calculation and Timing of Commission Payments.
- Term and Termination. This agreement will continue unless either party terminates the agreement. In the event of termination, Commission Payments will continue to be paid for Sales Contracts received prior to termination date until they are no longer eligible for Commission Payment.
- Law and Venue. New Hampshire, USA.
Calculation and Timing of Commission Payments
Partner receives Commission Payments related to Sales Contracts delivered by Partner as follows:
- Monthly Commission Payments. Commissions are paid monthly by the 15th of each month.
- Commission Payment Amount is calculated as the sum of Eligible Receipts multiplied by the Commission Rate for each receipt.
- Eligible Receipts are the sales receipts received the previous month related to Bionic Service from Mutual Customers. Quarterly Customer Health Reports must be up-to-date in order for receipts to be eligible.
- Base Commission. 25% of sales receipts related to Bionic Service provided in the first year of the Sales Contract. 5% of sales receipts related to Bionic Service Provided beyond the first year of the sale contract.
- Incentive Commission is an additional commission on the first year of the sales contract. On Sales Contracts received prior to December 31, 2019 the Incentive Bonus is 15%.
- Status Bonus is an additional commission based on the status level of the partner ranging 0-20%. See below for details.
- Commission Rate is calculated as Base Commission plus Incentive Bonus plus Status Bonus.
- First Year Commission Rate for Sales Contracts received before December 31, 2019 is 40-60% = 25% Base Commission + 15% Incentive Bonus + 0-20% Status Bonus.
- Subsequent Year Commission Rate is 5-25% = 5% Base Commission + 0-20% Status Bonus
As a point of comparison, according to the SoftLetter SaaS Report, here is the distribution of percentage payout of first year revenue from SaaS provider to reseller:
- 60% pay 1-15% margin
- 19% pay 16-30% margin
- 21% pay more than 40% margin
The Commission Rates for the Solution Partner Program are generous by design to enable our solution partners to be financially successful in building their practice around Bionic.
Status Level and Status Bonus
In order to recognize and reward Partners who successfully implement the Bionic solution, each Partner will be assigned a level based on their success:
- Authorized Solution Provider. This is the basic level. No additional Status Bonus at this level.
- Gold Solution Provider. This status is attained when 10 or more Successful Implementations in the last 12 months. At this level, your Status Bonus is 10%.
- Platinum Solution Provider. This status is attained when 25 or more Successful Implementations in the last 12 months. At this level, your Status Bonus is 20%.
A “Successful Implementation” is defined as a Mutual Customer that has been using Bionic for more than 60 days and is currently a Customer in good standing. Customers that cancel or don’t pay their bills are not considered in good standing.
In addition to higher commission, Gold and Platinum Solution Providers will get higher visibility on the Media Buying Solution Partners page on the Bionic website.