1. VIP Reseller Program Revenue and Expense Estimate
Elite Preferred Partner Total
Number of Members 40 175 1000 1215
Revenue
Reseller Purchases $40,000,000 $87,500,000 $50,000,000 $177,500,000
Distributor Margin $1,600,000 $3,500,000 $2,000,000 $7,100,000
Gross VMware Revenue $38,400,000 $84,000,000 $48,000,000 $170,400,000
Reseller Rebate $4,000,000 $8,750,000 $0 $12,750,000
Net VMware Revenue $34,400,000 $75,250,000 $48,000,000 $157,650,000
Program Fee $60,000 $175,000 $0 $235,000
Internal Use Licenses $0
Total $34,460,000 $75,425,000 $48,000,000 $157,885,000
Expense
MDF / Co-op $800,000 $400,000 $0 $1,200,000
NFR (1 physical copy, each product, each year) $4,000 $17,500 $40,000 $61,500
Technical Support Hotline/Forum monitoring $80,000 $350,000 $0 $430,000
Sales Training (no incremental expense) $0 $0 $0 $0
Technical Training/Certification (no incremental
expense, MDF reimbursements are above) $0 $0 $0 $0
Monthly Webcast (no incremental expense) $0 $0 $0 $0
Partner Plaques $2,000 $8,750 $0 $10,750
Quarterly Newsletter (no incremental expense) $0 $0 $0 $0
User conference passes ($600 cost) $48,000
Partner Relationship Management System
($30K/month for 1,000 users, $24/incremental user) $86,400 $252,000 $24,000 $362,400
$1,020,400 $1,028,250 $64,000 $2,064,650
Net $33,439,600 $74,396,750 $47,936,000 $155,820,350
Cost margin 3.0% 1.4% 0.1% 1.3%