SPEND Advantage

SPEND Advantage Impact

The Path to Sustainable Funding

The technology purchases member companies already make can fund the Association's mission: the Association itself, every chapter, and the members themselves. The member company continues to negotiate the same or better pricing for their technology purchases. Participation is voluntary and adds resources to help members in the sourcing of technology. This operator view shows the full program waterfall on gross commission received.

One member company — the generic view

$
18% blended average
Commission by category
$25,000/mo × 18% = $4,500/mo supplier commission; × 85% distributor pass-through = $3,825/mo gross received
Association royalty (7.5%)
$3,443/yr
$287 per month
SpearPoint platform (7.5%)
$3,443/yr
$287 per month
Member royalty (7.5%)
$3,443/yr
$287 per month
Advisor of record (77.5% residual)
$35,572/yr
$2,965 per month
Gross received (100%)
$45,900/yr
$3,825 per month
Standard Association program. Rates are of gross commission received. The member royalty and the Association royalty are paid in dollars, on placement and on renewal.

Across the program

12 chapters × 25 companies = 300 participating companies at the average spend above
Association royalty
$1.03M/yr
7.5% of gross
SpearPoint platform
$1.03M/yr
7.5% of gross
Member royalty
$1.03M/yr
7.5% of gross
Advisor of record
$10.67M/yr
77.5% residual
Gross received
$13.77M/yr
100%

Five example deals

An Engineering FirmUCaaS rollout · Cisco5 · CX / UCaaS / CXaaS22%supplier commission$48,000monthly spend
$48,000 × 22% = $10,560/mo supplier commission; × 85% pass-through = $8,976/mo gross received ($107,712/yr)
Association royalty (7.5%)
$8,078/yr
$673 per month
SpearPoint platform (7.5%)
$8,078/yr
$673 per month
Member royalty (7.5%)
$8,078/yr
$673 per month
Advisor of record (77.5%)
$83,476/yr
$6,956 per month
Multi-Location Financial CompanySecurity / SASE refresh · Masergy4 · Security / SASE18%supplier commission$23,500monthly spend
$23,500 × 18% = $4,230/mo supplier commission; × 85% pass-through = $3,596/mo gross received ($43,146/yr)
Association royalty (7.5%)
$3,236/yr
$270 per month
SpearPoint platform (7.5%)
$3,236/yr
$270 per month
Member royalty (7.5%)
$3,236/yr
$270 per month
Advisor of record (77.5%)
$33,438/yr
$2,787 per month
Distribution & Warehouse CompanyNetwork buildout · Meter1 · Network Connectivity15%supplier commission$120,000monthly spend
$120,000 × 15% = $18,000/mo supplier commission; × 85% pass-through = $15,300/mo gross received ($183,600/yr)
Association royalty (7.5%)
$13,770/yr
$1,148 per month
SpearPoint platform (7.5%)
$13,770/yr
$1,148 per month
Member royalty (7.5%)
$13,770/yr
$1,148 per month
Advisor of record (77.5%)
$142,290/yr
$11,858 per month
Logistics CompanyVeeam (VMware replacement) · Rapidscale7 · Software Licensing3%supplier commission$200,000monthly spend
$200,000 × 3% = $6,000/mo supplier commission; × 85% pass-through = $5,100/mo gross received ($61,200/yr)
Association royalty (7.5%)
$4,590/yr
$383 per month
SpearPoint platform (7.5%)
$4,590/yr
$383 per month
Member royalty (7.5%)
$4,590/yr
$383 per month
Advisor of record (77.5%)
$47,430/yr
$3,952 per month
CX Call CenterContact center platform · NICE CXone5 · CX / UCaaS / CXaaS20%supplier commission$75,000monthly spend
$75,000 × 20% = $15,000/mo supplier commission; × 85% pass-through = $12,750/mo gross received ($153,000/yr)
Association royalty (7.5%)
$11,475/yr
$956 per month
SpearPoint platform (7.5%)
$11,475/yr
$956 per month
Member royalty (7.5%)
$11,475/yr
$956 per month
Advisor of record (77.5%)
$118,575/yr
$9,881 per month
All five deals together
$466,500/mo of member spend → $548,658/yr gross received → $41,149/yr to each of Association royalty, member royalty, and SpearPoint platform; $425,210/yr residual to the advisor of record
9 most common categories of spend impact: 1 Network Connectivity 2 Network Edge / SD-WAN 3 Cloud / IaaS / Colo 4 Security / SASE 5 CX / UCaaS / CXaaS 6 Application Optimization 7 Software Licensing 8 Business Intelligence 9 AI & Automation

9 Most Common Categories of Spend Impact, defined

1. Network Connectivity

The circuits themselves: dedicated internet access, broadband, private lines, wavelength services, and fixed wireless that connect offices, data centers, and clouds — the recurring carrier services under everything else a company runs.

2. Network Edge / SD-WAN

Managed networking on top of the circuits: SD-WAN overlays that steer traffic across multiple connections, managed routers and edge devices, and the orchestration that keeps branch sites performing and failing over cleanly.

3. Cloud / IaaS / Colo

Infrastructure: public cloud compute and storage, private and hosted cloud, and colocation space, power, and interconnection. Often a company's largest single line of IT spend.

4. Security / SASE

Cybersecurity delivered as a service: managed detection and response, firewalls and secure web gateways, zero-trust access, and SASE offerings that converge network security and remote access into a single cloud-delivered stack protecting users, sites, and data.

5. CX / UCaaS / CXaaS

Cloud communications and customer experience platforms: unified communications (voice, video, meetings, messaging) and contact center / customer experience as a service, including the agent tooling, analytics, and integrations that run how a company talks to its customers and how its people talk to each other.

6. Application Optimization

Services that make applications fast and reliable for the people using them: load balancing, content delivery, WAN and application performance optimization, and the observability tooling that shows where the slowdowns are.

7. Software Licensing

Commercial software agreements and renewals: productivity and collaboration suites, SaaS subscriptions, and enterprise license agreements across the company's software portfolio.

8. Business Intelligence

Data platforms and analytics: warehousing and lakehouse platforms, data integration and pipeline services, and the BI tooling that turns operational data into the reporting and dashboards a leadership team actually runs on.

9. AI & Automation

AI platforms and intelligent automation bought as services: conversational AI and virtual agents, machine-learning platforms, document and workflow automation, and RPA — the fastest-changing category of enterprise spend.

Sampling of available suppliers

Supplier catalog sampling is served from the SpearPoint portal at rollout.