Criteria for Selecting a Reseller

Selecting a value-added reseller (VAR) is the most critical step to achieving a successful evaluation, selection, and implementation. As many as half of all implementations fail to meet customer objectives due to the inexperience, lack of ability, or lack of availability of the reseller. However, finding the best reseller is not easy. If you call the vendor, they usually just give you the next name on their list. If you look in the yellow pages, you can't tell which one is better than the other. In all of these cases, you take your chances. 

The process of finding the best reseller requires some digging. First you must identify all of the possible resellers in your area who support the product in question. Next, call around. Often you can obtain good feedback from your State CPA Society, your local CPA, your competitor, your hardware dealer, etc. Our reseller consortium is well-connected and they could probably give you some good feedback regarding the top reseller in a given market. You can also call us - we would love to earn a few brownie points by referring you to a top reseller. You can reach Carlton or Geni at 770.734.0950. (Disclosure - While we don't accept commissions from resellers, we do provide speaking services on behalf of resellers.) 

Once you've identified potential resellers, you should narrow your list of potential resellers using our criteria listed below. We have established different levels of criteria depending on the class of product being implemented. 

Criteria For Selecting A Mid-Market Reseller 
Such as Dynamics, MAS 90, MAS 200, Navision Attain, ACCPAC Advantage, Solomon IV, Syspro IMPACT Encore, ACCPAC Pro Series, Exact Macola ES or similar class products:

1. At least 3 experienced consultants on staff, with at least 2 years experience each.
2. All consultants trained and certified and in good standing with the vendor.
3. All consultants receive annual training, as evidenced by certificates of completion.
4. At least 1 support person dedicated full time.
5. At least 35 customer implementations under their belt.
6. At least 3 customer references who check out fine.
7. Vendor reference that checks out fine.
8. Evidence of a sustained marketing program 
            (this is a good indicator that the reseller is doing things right).
9. Attendance of vendor's annual conference by at least one consultant.
10. Physical inspection of facilities meets expectations.
11. Background check with Better Business Bureau is positive.
12. Background check with your CPA, or a local CPA is positive.
13. Background check with credit bureau is positive.
14. Reseller is able to demonstrate availability of time to meet your needs. 

Criteria For Selecting A High-End Reseller 
Such as eEnterprise, MAS 500, Microsoft Axapta, E by Epicor, Navision Attain, ACCPAC Advantage, Solomon IV, Syspro IMPACT Encore, or similar class products:

1. At least 5 experienced consultants on staff, with at least 2 years experience each.
2. All consultants trained and certified and in good standing with the vendor.
3. All consultants receive annual training, as evidenced by certificates of completion.
4. At least 2 support person dedicated full time.
5. At least 25 customer implementations under their belt.
6. At least 3 customer references who check out fine.
7. Vendor reference that checks out fine.
8. Evidence of a sustained marketing program 
            (this is a good indicator that the reseller is doing things right).
9. Attendance of vendor's annual conference by at least one consultant.
10. Physical inspection of facilities meets expectations.
11. Background check with Better Business Bureau is positive.
12. Background check with your CPA, or a local CPA is positive.
13. Background check with credit bureau is positive.
14. Reseller is able to demonstrate availability of time to meet your needs. 

Criteria For Selecting An Entry-Level Reseller 
Such as QuickBooks, Peachtree Complete Accounting, Simply Accounting, Microsoft SBM, Oracle Small Business Manager, Businessvision 32, BusinessWorks or similar class products:

1. At least 1 experienced consultant on staff, with at least 2 years experience.
2. A least 1 consultant trained and certified and in good standing with the vendor.
3. Consultant receives annual training, as evidenced by certificates of completion.
4. At least 25 customer implementations under their belt.
5. At least 3 customer references who check out fine.
6. Background check with Better Business Bureau is positive.
7. Background check with your CPA, or a local CPA is positive.
8. Background check with credit bureau is positive.
9. Reseller is able to demonstrate availability of time to meet your needs. 

Our Criteria for Identifying the World's Top Resellers

1. The reseller must be a top quality reseller with a good reputation and you must be in good standing with their product vendor. If we hear otherwise - you're off the list. We check customer references, account manager references, and also talk to the reseller's competitors in an attempt uncover problem resellers.
    

2. The reseller must resell at least one of the products listed on our Top 40 Products List. We ignore all resellers who sell inferior products.
    

3. The reseller must attend their vendor’s annual conference. We find that resellers who are not actively involved in their reseller's events often do not possess the relationships, and the up to date knowledge to perform as a top reseller. Attending these events takes a great deal of time and resources, but is often a good indicator of success resellers.
    

4. The reseller must send their consultants to product training every year. It is important that formal training programs are attended on a regular basis to keep the consultants up to date, informed, and prepared to meet the demanding needs of the client. Without annual training, the customer may suffer.
    

5. The reseller must conduct a continuous and sustained marketing effort. An ongoing marketing effort is needed to generate continuous and steady sales. Without steady sales, the reseller's revenues will most likely fluctuate and lead to  poor cash flow months, lower profitability, the loss of personnel, less support, less longevity, and less long term reliability. 
    

6. For each location, the reseller must have a minimum number of consultants on staff (1 for entry level products, 3 for mid-range products, and at least 5 for high end products.) Reseller bandwidth is a frequent problem which often leads to customer neglect and extended engagements. We want to make sure that the customer is well-served by an adequate number of personnel with reasonable backup personnel at the ready.
    

7. The reseller must have a minimum number of client implementations (50 for entry level resellers, 35 for mid-range resellers, and 25 for high end resellers). If a reseller has not installed an adequate number of systems, they most likely do not possess the wide breadth of knowledge and experience needed to be classified as a world class reseller.
    

8. The reseller must have a minimum number of dedicated support staff (at least one for mid-range products and at least 2 for high end products). Good support almost always translates to customer satisfaction. Without adequate support resources and personnel, customers take a huge risk.
    

9. The reseller must provide us with a minimum of 3 client references whom we call and ask the following basic due diligence questions:
   
   a.      Did XYZ reseller implement your accounting system?
   b.      Was the job completed to your satisfaction?
   c.       Has the system functioned to your satisfaction?
   d.      Has support been provided to your satisfaction?
   e.       Would you recommend XYZ reseller to another company?
    

10. You must pass background checks with the Better Business Bureau, and your product account manager.

Approved resellers are authorized to display the following logo on their website.

Conclusion

I realize that new resellers often will not meet these criteria. What can I say? If you want to play the odds and find a reseller who will most likely know what they are doing and do a  good job for you, follow my advice. If you want to take a chance on an unproven or less proven reseller - that's your choice. Just remember - an inadequate reseller is the NUMBER ONE PROBLEM. I hope this information is helpful to you. If you have comments, suggestions, or feedback, please let me hear about it - carlton@accountingsoftwareadvisor.com.  

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