Current Process
- “Net New” money to SAS
- Renewal and upgrading
- New deal being formed while old site is being removed
- Renewal of old site is subtracted from new deal
- Most come from consolidations and virtualizations replacing renewals
- Not a common occurrence
- Net new scenarios defined in section 11 of sales policies
- Presentation virtualization server replacing existing desktop license, so lost renewal; Net New should apply
- Invoice to customer is different than what sales gets credit for
- Applied by policy, no approval currently
- Biz Ops notifies sales at time that request is made that Net New will apply
- Paperwork still looks the same
- Contracts handles Net New calculation outside US for smaller routine deals; Carol gets involved with larger consolidations
- Net New not as common outside the US -- YET
Net New is defined in the JMP Sales Credit Policy (Section 11. Protecting Renewals)
The JMP Division pays commission on “new revenue” to the Company. If an opportunity involves a reduction or cancellation of an existing Renewal, then a “NET NEW” calculation is applied.
When a Sales Employee is working with an existing customer on a First Year Fee Agreement, the Sales Employee is responsible for researching the effect of the deal of existing renewals and/or outstanding invoices. The renewal effect will either be:
- immediate, if the First Year Fee license start date is on the anniversary date or
- delayed, if the anniversary date is later than the First Year Fee license start date
Any related reductions or cancellations need to be deducted from the First Year Fees to determine NET NEW First Year Fees for sales credit purposes. The NET NEW breakdown will only be reflected on internal invoicing and will be transparent to the customer on their invoice.
Some scenarios that may occur within the same customer account that typically warrant application of NET NEW calculations:
- Repackaging of existing renewals into an Enterprise, Regional or Worldwide Agreement;
- A merger, acquisition, or similar structural change of companies, where a site is cancelled or downgraded, but the products are re-invoiced under a different site, license, or perhaps company name;
- Cancellation or downgrade of existing site or contract and entering into new contract for the same or similar products (for whatever reason);
- Moving to a new platform, but essentially invoicing for the same or similar products, such as:
- JMP or JMP Pro Desktop to JMP or JMP Pro Presentation Virtualization Licenses.
- JMP or JMP Pro Presentation Virtualization Licenses to JMP or JMP Pro Desktop licenses.
- JMP Academic Suite Department to JMP Academic Suite Campus license.
NOTE: The expected “NET NEW” calculation is applied when the transaction is booked. If at a later date the customer decides against the cancellation/downgrade and pays the renewal in full, sales credit will be added back retroactively to the date the transaction was originally booked.
Considerations
- Need a way for sales to know ahead of time that Net New will apply so they can forecast properly
- Need a way for sales to request from BO if numbers are correct
- Need a way for BO to notify sales that Net New will apply
- Should all be documented in the system
- Reporting for sales management of Net New deals
- Transfer fees: not growing our customers, just charging them more $
- New business == new customers
- Ask from Business Operations: sales notify them that Net New is coming
For further discussion: Naming and labeling of fields / taxonomy
Adding the email string of a Net New email...
From: Kathy Cobb
Sent: Tuesday, August 07, 2018 3:30 PM
To: Tina DuBois
Cc: Carol Gretz ; John Jones ; Antoine Smith ; Ashley Prince ; Kate Fitzgerald ; Valencia Burt
Subject: RE: Additional Opportunity Types for Salesforce
Hi Tina,
All 3 types can be done as standard and non-standard New Opportunities, Upgrade Opportunities, and Comit Calls depending on the situation.
A suggestion to start by looking at the Deal Sheet and then other topics in ORION Help:
http://pubshelpcenter3.unx.sas.com:8080/internalapp/?cdcId=orioncdc&cdcVersion=1.0&docsetId=orion&docsetTarget=p1b5hjhrsrybsjn1sq50tkl15dlm.htm&locale=en#p19s7lxhdkwesan1pgx80f0i4pkb
Thanks,
Kathy
From: Tina DuBois
Sent: Tuesday, August 07, 2018 11:14 AM
To: Kathy Cobb <Kathy.Cobb@jmp.com>
Cc: Carol Gretz <Carol.Gretz@jmp.com>; John Jones <John.Jones@jmp.com>; Antoine Smith <Antoine.Smith@jmp.com>; Ashley Prince <Ashley.Prince@jmp.com>
Subject: Additional Opportunity Types for Salesforce
Hi Kathy,
We are trying to create scope for tracking new types of opportunities in Salesforce, to ensure our forecasting and reporting is accurate, and that we have the most reliable information in Salesforce, prior to creating COMIT in ORION.
In talking with Ashley regarding Opportunities where BAU or renewal protection needs to be a consideration, she indicated the following scenarios were the most typical. Can you please review and give me your feedback on how these are identified in ORION?
- Site Consolidation
- License Transfer
- New product/upgrade/cancellation
The end result of all three is that Sales credit will be different (less) than the invoiced amount to the customer.
Thanks for your input!
Tina
Tina DuBois
