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Community Blog Alibaba Cloud Business Model Brief Introduction

Alibaba Cloud Business Model Brief Introduction

This article focuses on the Channel Program business model introduction in Alibaba Cloud International Site.

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Alibaba Cloud International Partner Ecosystem includes Channel Partners, Technology Partners, Service Partners, and Global Strategic Partners. There are different business models under each category. This article focuses on the Channel Partner program for Alibaba Cloud Public Cloud.

Channel Partners are authorized to resale Alibaba Cloud International Site products and solution to end customers. There are three key business models: Agency, Direct Reseller and Distributor.

Enterprises interested in becoming Alibaba Cloud partners can contact local Alibaba Cloud team or email to Blog.ACPN@AlibabaCLoud.com for more information.

1. Agency Business Model

The Agency promotes Alibaba Cloud International site Public Cloud products to customers, and obtains commission based on customers purchased revenue. Agency partner does not participate in the business process between the customer and Alibaba Cloud . Agency use Alibaba Cloud Channel Platform for their daily partner business management and business model is summarized below.

  1. The Agency develops customers and associates on the channel platform.
  2. The customer purchases from the Alibaba Cloud portal. Alibaba Cloud issues invoices and settle with customers directly.
  3. Alibaba Cloud calculates and releases commission based on agency all customers actual commissionable performance and commision rate.

Candidates from below partner sources can consider to apply as Agency, including consulting companies, investment companies, media companies with a solid customer base.

Agency Partner Qualifications are listed below.

● Valid International business entity registered at least 1 year ago

● Healthy Financial status, and registered capital over 2000 USD

● Strong willingness for partnership

● Accessible customer resources

2. Direct Reseller Business Model

Direct Reseller can resell Alibaba Cloud products and solutions to end user, providing value-added services on top. Direct Reseller can earn both discount and commission from Alibaba Cloud. The discount will be built directly on Alibaba Cloud's monthly invoice to the Direct Reseller, and the commission will be calculated and communicated based on Direct Reseller quarterly commissionable performance and Direct Reseller tier level. Alibaba Cloud Channel Platform will be activated when Direct Reseller get onboard, and Direct Reseller can use this system for their daily business management. The Reseller business model is summarized below:

  1. Direct Reseller develops customers and associates on the channel platform.
  2. Customers purchases resources from Alibaba Cloud international site without financial settling with Alibaba Cloud.
  3. Alibaba Cloud invoices Direct Resellers on monthly base, and Direct Reseller settles with Alibaba Cloud within payment term.
  4. Direct Reseller invoices their end users, and end users settle with Direct Resellers under their internal agreements.
  5. Alibaba Cloud calculates and release commission based on Direct Reseller quarterly commissionable performance and Direct Reseller tier level.

Candidates from below partner sources can consider to apply as Direct Reseller, including value added reseller, system integrator ,Indepedent Software Vendor, and MSP with a solid customer base.

Direct Reseller Partner qualifications are also listed below:

● Valid International business entity

● Business areas including internet services, system integrations, and software development

● Demonstrated technical capabilities in selected industries

● +2 Alibaba Cloud dedicated sales/tech/ops, and +2 ACP certificate

● Mature customer operation and service experiences

3. Distributor Business Model

Distributor is eligible to expand their coverage by recruting tier 2 resellers, and then tier 2 resellers can develop their customers directly. Distributor can earn discount and commission from the Alibaba Cloud International Site. The discount will be built directly on Alibaba Cloud's monthly invoice to the Distributor, and the commission will be calculated and released on quarterly basis based on Distributor quarterly commissionable performance and Distributor tier level. Alibaba Cloud Channel Platform will be activitied for Distributor for their business management. The Distributor business model is summarized below:

  1. The Distributor develops tier 2 reseller and associates on the channel platform.
  2. Tier 2 reseller develop their end users on the channel platform.
  3. Customers purchases resources from Alibaba Cloud international site without financial settling with Alibaba Cloud.
  4. Alibaba Cloud invoices Distributor on monthly base and Distributor settles with Alibaba Cloud within payment term.
  5. Distributor invoices tier 2 resellers and tier 2 resellers settle with Distributor following their mutual agreement.
  6. Tier 2 reseller invocies their end users and end users settle with tier 2 reseller following their mutual agreement
  7. Alibaba Cloud calculates and releases commission based on Distributor quarterly commissionable performance and Distributor tier level.

Distributor is an advanced business model in the channel partner business . Usually only 1-2 Distributors are developed in a territory normally, so Distributors have higher requirements in terms of onboarding requirements. Distributor Qualifications are listed below:

● Tier 2 resellers management experience

● Accessible resources to support tier 2 resellers quick growth

● Dedicated team member for Alibaba Cloud

● At least 4 ACP certificate

● At least 400k USD revenue commitment in 1st year

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