Whether you’re an Independent Software Vendor (ISV) or a business looking to grow your presence in the Microsoft ecosystem, Microsoft's incentives are designed to help you hit the jackpot.
From cash rewards to Azure credits and marketing benefits, Microsoft is offering a range of programmes to help you grow, innovate, and thrive.
In this blog post, we’ll break down the key incentives, how to qualify, and how to make the most of them. If you’re ready to maximise your rewards, keep reading—and don’t forget to reach out to WeTransact.io for expert assistance in listing your products on the Microsoft Marketplace. Plus, we’ll explain why using the right contracts is critical and how Cloud Contracts 365 can help you get it right.
Microsoft incentives are financial and non-financial rewards designed to encourage businesses to sell on the Microsoft Marketplace and grow their Azure consumption. For the Microsoft fiscal year 2024-2025, there are three main incentives and two additional benefits to know about:
1. Marketplace Transact and Grow Incentive.
2. ISV ACR Growth Incentive.
3. Marketplace Rewards.
These incentives are directly tied to your Marketplace performance and Azure consumption, offering cash pay-outs, Azure credits, and marketing benefits.
This incentive rewards you with cash for selling on the Microsoft Marketplace. Here’s how it works:
Milestone 1: Earn $20,000 in cash when you reach $100,000 in Marketplace sales.
Milestone 2: Earn $50,000 in cash when you reach $4 million in Marketplace sales.
These milestones can be achieved through multiple sales or a single transaction, and they can be replicated per publisher. If your company has multiple subsidiaries, each with its own publisher profile, you can maximise your earnings across all entities.
This incentive not only provides immediate financial rewards but also helps you build a strong business case with Microsoft. By transitioning your pipeline to the Marketplace, you position yourself as a key partner, opening doors to long-term collaboration and additional benefits.
If you’re an Azure-paying customer, this incentive is for you. Microsoft rewards you with cash based on your Quarter-over-Quarter (QoQ) growth in Azure consumption. The more you grow, the more you earn.
Level 1: 10% rebate on QoQ growth, capped at $100,000 per half-year.
Level 2: 10% rebate for Azure IP Cosell-eligible partners, capped at $100,000 per half-year.
Level 3: 15% rebate for strategic workloads, capped at $50,000 per half-year.
Example:
If your Azure consumption grows from $200,000 in Q1 to $300,000 in Q2, you’re eligible for a cash incentive of $10,000 to $35,000, depending on the level you qualify for.
This status is granted to software companies that either achieve $100,000 in Marketplace Billed Sales or spend $100,000 on Azure over a rolling year. Once eligible, you can submit your marketing and technical collateral to qualify for the IP Cosell Incentive, unlocking even more rewards.
Marketplace Rewards are non-cash benefits designed to boost your visibility and reduce your Azure costs. These rewards fall into two categories:
▪️Press release support.
▪️Blog features.
▪️Social promotion.
▪️Microsoft executive endorsements.
Use these credits to offset your Azure bills or offer them to customers as discounts. For example, if you consume $20,000 monthly on Azure, a $20,000 credit gives you a free month.
The more you sell, the more rewards you unlock. For instance:
▪️$25K in sales: $2K in Azure sponsorship
▪️$100K in sales: $30K in Azure sponsorship
▪️$1M in sales: $100K in Azure sponsorship
Pro Tip: Use Azure credits strategically during customer negotiations. Instead of offering a direct discount, provide Azure credits to protect your margins and close deals faster.
These programmes are designed to subsidise your development efforts. Whether you’re undertaking an Azure project yourself or working with a consulting partner, Microsoft offers financial support for projects of all sizes. This is a fantastic opportunity to innovate without worrying about budget constraints.
When listing your products on the Microsoft Marketplace, having the correct contracts in place is not just a formality—it’s a necessity. Contracts define the terms of your relationship with customers and Microsoft, protect your business from legal risks, and ensure compliance with Microsoft’s requirements. Here’s why it’s so important:
1. Compliance with Microsoft Standards: Microsoft has specific legal and operational requirements for Marketplace listings. Using the wrong contracts could lead to delays in approval or even rejection of your listing.
2. Protecting Your Business: Contracts safeguard your business by clearly defining terms such as liability, intellectual property rights, and payment terms. Without the right clauses, you could expose your business to unnecessary risks.
3. Building Customer Trust: A well-drafted, industry-specific contract reassures customers that you’re a professional, trustworthy partner. It sets the tone for a smooth and transparent business relationship.
4. Avoiding Legal Disputes: Poorly written or generic contracts can lead to misunderstandings and disputes. Tailored contracts help prevent these issues by addressing the specific needs of your business and customers.
This is where Cloud Contracts 365 comes in. As the no.1 provider of contract management tools for technology businesses, Cloud Contracts 365 makes it easy to create, review, and manage contracts tailored to your industry. Here’s how we can help:
1. Customisable Templates: Access a bank of pre-built, industry-specific contract templates designed to meet Microsoft Marketplace requirements.
2. AI-Powered Risk Analysis: Our AI-powered tools review your contracts for potential legal risks, ensuring you’re protected and compliant.
3. Streamlined Management: Manage all your contracts in one place with built-in e-signature functionality and automatic renewal reminders.
4. Faster Time to Market: By using Cloud Contracts 365, you can quickly create and finalise contracts, reducing delays in getting your products listed on the Marketplace.
With Cloud Contracts 365, you can focus on growing your business while we handle the complexities of contract management.
Getting started with these incentives is easier than you think. Here’s a quick checklist:
1. Enrol in the Incentives Programme: If you’re new, follow the guides available in the Partner Centre to enrol, fill out tax details, and set up your payment profile.
2. List Your Solutions on the Marketplace: The moment you publish on the Marketplace, you’re eligible for rewards.
3. Focus on $100K in Sales Pipeline: Whether it’s new deals, upsells, or renewals, bring these deals to the Marketplace to qualify for the $20,000 cash incentive.
4. Leverage Azure Credits: Use them to reduce your costs or offer them to customers as part of your sales strategy.
5. Use Cloud Contracts 365: Ensure your contracts are compliant, professional, and risk-free to avoid delays and protect your business.
The clock is ticking! These incentives are only valid for the fiscal year, and sales after 31 May 2025 won’t count towards the Marketplace Transact and Grow Incentive. By acting now, you can maximise your rewards and position your business for long-term success in the Microsoft ecosystem.
Microsoft’s FY 2024-2025 incentives are a golden opportunity for businesses to grow their Marketplace presence, increase Azure consumption, and unlock valuable rewards. Whether you’re looking for immediate cash pay-outs, marketing support, or Azure credits, there’s something for everyone.
If you’re new to Microsoft’s Marketplace or need help navigating the incentives, WeTransact.io is here to help. Their team of experts can guide you through the process of listing your products, ensuring you’re set up for success.
And don’t forget to use Cloud Contracts 365 to ensure your contracts are compliant, professional, and tailored to your needs. With the right contracts in place, you’ll avoid unnecessary delays and risks, giving you the confidence to focus on growing your business.
Don’t miss out—get listed and start selling on the Marketplace today!
WeTransact.io specialises in helping businesses maximise their Microsoft Marketplace presence. From listing your products to navigating incentives, their team is dedicated to helping you succeed. Book a meeting with them today to get started!
Cloud Contracts 365 provides contract management tools designed for technology businesses. With customisable templates, AI-powered risk analysis, and streamlined management features, Cloud Contracts 365 ensures your contracts are compliant, professional, and ready for the Microsoft Marketplace.
Start your free trial today to discover more!