Story image

Investigation: Who funds whose salary?

05 Jul 10

Our industry used to be relatively simple. As products got sold, the vendor, distributor and channel partners made their own margins and employed their own team members. This was complicated by rebate structures and marketing development funds (which anecdotally seem nearly impossible to cash in on at the moment). But in the last few years things have become even more complicated with funded BDMs and vendor desks.

What is a funded BDM?

Generally, this is where a vendor doesn’t have a presence in New Zealand for that particular product range, or wants additional focus on it at the distributor level.

The vendor pays the salary and commission structure of the sales position, with the individual actually being based within the distributor’s business. The vendor would set the general focus of the position, which mostly revolves around market share growth, recruiting new channel partners and or connection rates with higher margin solutions.

These individuals then get out on the road visiting channel partners with the message and supporting larger deals / transactions.

The same has occurred inside retailers, for example when Renaissance funded Apple Black Shirt employees to be based at Harvey Norman, Dick Smith, Noel Leeming and JB Hi-Fi. Although these where phased out in the end.

But one much more interesting approach has been the growth of what most are calling ‘vendor desks’.

A recent example is Integral (including Axon) which has its own Ingram Micro vendor desk occupied by David Orsborn. Gary Bigwood, General Manager at Ingram Micro New Zealand, says this isn’t anything new or controversial. “We have a lot of staff that will work alongside resellers on a regular basis, and that is often on their premises if it makes sense. In turn, we have a lot of our own vendors that occupy desks on a regular basis in our building where it makes sense. This is not new, and has been going on for years.”

But it really is an interesting phenomenon, to have a supplier’s employee working in your purchasing department.


  • Is a member of your purchasing team funded by a supplier?

  • If so, how do you ensure you are getting the best pricing with these other allegiances?

  • And can other suppliers get a foot in the door?


Let us know your thoughts below.

Proofpoint launches feature to identify most targeted users
“One of the largest security industry misconceptions is that most cyberattacks target top executives and management.”
How blockchain will impact NZ’s economy
Distributed ledgers and blockchain are anticipated to provide a positive uplift to New Zealand’s economy.
McAfee named Leader in Magic Quadrant an eighth time
The company has been once again named as a Leader in the Gartner Magic Quadrant for Security Information and Event Management.
Symantec and Fortinet partner for integration
The partnership will deliver essential security controls across endpoint, network, and cloud environments.
Review: Blue Mic’s Satellite headphones are good but...
Blue Mic’s newest wireless headphones deliver on sound, aesthetic, and comfort - but there is a more insidious issue at hand.
Is Supermicro innocent? 3rd party test finds no malicious hardware
One of the larger scandals within IT circles took place this year with Bloomberg firing shots at Supermicro - now Supermicro is firing back.
Forcepoint and Chillisoft - “a powerful combination”
Following Chillisoft’s portfolio expansion by signing on Forcepoint, the companies’ execs explain how this is a match made in cybersecurity heaven.
David Hickling in memoriam: “Celebrate the life and the music it made”
Dave was a well-respected presence in the IT channel and his recent death was felt by all the many people who knew him as a colleague and a friend.