Reseller Productivity Ramp
It is not anticipated that Resellers will become immediately productive once they enroll.
BluBØX’s plan is to engage with them immediately after enrollment and help them quote BluBØX solutions alongside every traditional quote that they do, and then help them present to their clients the BluBØX Cloud / Mobile solution as an alternative to the traditional system. This process will accelerate their ability to quote and sell the Cloud / Mobile solution.
These curves show the evolution: No Reseller is expected to bring in business during the “ramp-up” period after enrollment, estimated to be 3 months.
The plan then assumes that early sales will be of the smallest systems that typically generate approximately $2,300 in One-Time Revenue and $725 in annual Recurring Revenue for BluBØX. The productivity ramp curve indicates that just 33% of the monthly quota will be sold in the 4th month after enrollment, 66% in month #5, and 100% in month #6.
Sales of the next level system that will typically generate $5,500 in One Time Revenue and $2,200 in annual Recurring Revenue start one month later and ramp up over 4 months instead of 3.
And so it goes, with sales of the largest systems not happening until 9 months after enrollment, and ramping up over 10 months. These systems each generate $100,000 in One Time Revenue and $25,000 in annual Recurring Revenue.