Forum Discussion
FY27 Distributor Incentives - Few Questions
Dear team,
We are a Distributor and need to understand better the mechanics of the FY27 incentives.
More specifically, please find below the questions we need to sort the soonest possible:
- Regarding the growth accelerator, is there any minimum threshold above which we are eligible to receive the Disti rebate or the growth applies even to one new additional licenses?
- Again, regarding the growth accelerator, the Disti rebates applies only to the new licenses added or to the new total number of licenses following the additions? Example: current config. with 100x ME5. We plan to add 100x more ME5. Will we have to apply the Disti rebate on the new 100x ME5 or to the total 200 ME5?
Thank you so much for your clarifications that are crucial for our business planning!
Warm regards,
Nick
From the team:
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- Is there a minimum threshold required to earn the Disti Growth Accelerator?
No. There is no minimum growth threshold required to qualify for the Growth Accelerator. Eligible growth is measured based on YoY incremental billed revenue, so even incremental growth (such as adding a single eligible seat) can contribute toward Growth Accelerator earnings.
- Does the Disti Growth Accelerator apply to all licenses after growth or only the net-new licenses added?
The Growth Accelerator is calculated on YoY incremental billed revenue, not on the total installed base and not on seat count. Using your example:
- Prior year baseline: revenue from 100 Microsoft 365 E5 seats
- Current deployment: 200 Microsoft 365 E5 seats
- Incremental growth: revenue generated from the 100 net-new seats
In this scenario, the Growth Accelerator would apply to the YoY incremental revenue tied to the additional growth versus the same period last year, not to the revenue from all 200 seats.
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3 Replies
- JillArmourMicrosoft
Community Manager
From the team:
-
- Is there a minimum threshold required to earn the Disti Growth Accelerator?
No. There is no minimum growth threshold required to qualify for the Growth Accelerator. Eligible growth is measured based on YoY incremental billed revenue, so even incremental growth (such as adding a single eligible seat) can contribute toward Growth Accelerator earnings.
- Does the Disti Growth Accelerator apply to all licenses after growth or only the net-new licenses added?
The Growth Accelerator is calculated on YoY incremental billed revenue, not on the total installed base and not on seat count. Using your example:
- Prior year baseline: revenue from 100 Microsoft 365 E5 seats
- Current deployment: 200 Microsoft 365 E5 seats
- Incremental growth: revenue generated from the 100 net-new seats
In this scenario, the Growth Accelerator would apply to the YoY incremental revenue tied to the additional growth versus the same period last year, not to the revenue from all 200 seats.
-
Growth Accelerator is applied only to eligible growth SKUs as listed in the Product Addendum.
Growth also doesn't look at the amount of licenses, but looks at the $ itself. You'll earn growth accelerator for every YoY CSP revenue growth achieved (on the eligible products). So not the entire subscription with the existing licenses, but the extra $ within the Solution Area CSP revenue.
Example shows on which amount the Growth Accelerator would be applied to.
Also, please remove the percentages in your post, as it's Distributor private information and should not be shared publicly.
- JillArmourMicrosoft
tafara can you help with this by chance?
