Milestone Aims to Reduce Partners by 70%

In April 2022, Milestone told IPVM its channel restructuring would result in more resources available to the most dedicated Milestone dealers. At MIPS 2022, Milestone reported a 60%+ decrease in global partners, with a goal of a 70% drop by mid-2023.

In this report, IPVM examines what Milestone said and what this means for Milestone's remaining partners.

~70% Decrease, Down to 3,500 Partners

Milestone's new Chief Revenue Officer, Ilijana Vavan, said they reduced partner numbers from 16,000-17,000 to 6,000-7,000 since launching the new restricted program.

Milestone clarified after the conference that they plan to decrease to 3,500 partners, from 11,000, by mid-2023:

We launched our Milestone Partner Program on July 2022 to ensure that we focus on maximizing partner success, selling value to customers, and acting responsibly in how we sell our products. As part of this process, we plan to trim our global partners from 11,000 to about 3.,500 by mid-2023. Out of principle, we do not comment specifically on individual Milestone partners.

They did not clarify the difference in the figures provided at MIPS versus those officially provided in the follow up.

Background

Milestone reduced the number of total partners they have by requiring revenue commitments, rather than just certification requirements.

Milestone's previous program offered four tiers (Silver, Gold, Platinum, Diamond), which Milestone said did not properly communicate the value of the tier.

Also, Milestone explained how the old program was more complicated:

There were 2 discount levels. Tier discount based on revenue there is a discount, and then there is the metals, based upon the certifications. So I could be a partner that sold $1,000 worth of product and got 2 certifications and be a Gold Partner. I could do $50,000 in sales not do a certification I'm a Silver Partner, but that Silver Partner got a better discount than the Gold Partner.

They said this confusion or competitive issue is addressed with the new program:

With the new program, it's combined; so that you need to do revenue and certification to get to the levels.

Increasing Sales Headcount

Milestone also reported that by the end of 2022 its headcount in the Americas will be "just over 300," explaining that since July 2021 the sales team in the Americas doubled. This primarily includes channel partner reps and regional account managers. They said the pre-sales technical team increased by 150% in the same period.

They also reported a 200% increase in marketing headcount, including Business Development Managers, and Architect & Engineering specialists, among others.

Milestone previously told IPVM the expansion is driven by the growth of the US market:

Its not us just right sizing or reducing costs, its us investing on where the growth in the market is