Apple pulls plug on Authorized Business Agent program

[AppleInsider]

Apple Inc. last week began informing partners that it plans to end its Authorized Business Agent program at the end of the year.

The program is comprised of approximately 800 independent professionals across the U.S. who had been approved by the company to recommend the sale of Apple solutions without having to incur the costs typically associated with becoming a reseller.

As Authorized Business Agents, participants earned fees whenever their clients purchase Apple and related third-party products from an exclusive online store -- the Apple Business Agent Store.

In an email to agents last week obtained by both MacNN and AppleInsider, Apple announced that it plans to discontinue the program effective at the close of business on December 31st, 2007.

The Cupertino-based company provided no reason for the cancelation and instead cited a clause in the Authorized Business Agent Agreement that affords it the right to terminate the program on short notice.

"We appreciate your contribution to Apple's business as part of the Apple Business Agent program. Unfortunately, after careful consideration, we have decided to end this program," the e-mail said. "In accordance with section 12 B(i) of the Authorized Business Agent Agreement ('Agreement'), Apple is notifying you that your Agreement will be terminated effective January 1, 2008."

The cancelation of the program is said to have an even greater effect on Apple Consultants Network members who also chose to become Authorized Business Agents, primarily because those individuals were forced to cut their ties with Apple retail stores when joining.

"Personally, I never took this program too seriously because I know from experience that Apple makes these types of about-face moves at a moment's notice," one member told MacNN. "Historically, time and again, Apple [has] proven to be loyal only to Apple, disregarding the needs of the individual resellers and evangelists who built Apple from the ground up and stuck with them through their lean times."

A copy of the AABA cancelation letter obtained by AppleInsider.

ACN members who participated in the program were forbidden from participating in Apple's store referral program, and while those members are now allowed to rejoin the referral program they must now also attempt to rebuild their relationships with nearby stores.

"In my case, I will likely continue to be excluded from the referral program because the nearest store now has its compliment of ACN members," the member said. "So basically, I am about to be completely cut off from Apple as a result of their own program decisions."

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[MoonShadow]

Wow. This is a terrible shame.

Without the AABA program, there isn't an Apple store within a 2 hour drive of where I live. Several area schools and a couple businesses rely on the agents to keep them up to date on their hardware and software, and now they'll mostly be cut off... left with only out-of-reach retail stores that don't really care about them personally.

For the first time in a very long time, I'm massively dissapointed in Apple.

[city]

So this must be why Apple stock is up.

[blackbird_1.0]

Does this mean no more Circuit City's or CompUSA's with Macs or Mac repairs?

[johnmcboston]

Originally Posted by blackbird_1.0

Does this mean no more Circuit City's or CompUSA's with Macs or Mac repairs?

Yah - I'm kind of lost on this announcement. Does this stop CC, BB, etc from selling macs? Or is this a slap to the 'guy done the street that opened a Mac repair shop'???

[OriginalMacRat]

This is about independant "consultants" and has nothing to do with retail businesses.

[SpamSandwich]

Originally Posted by city

So this must be why Apple stock is up.

Nah, the market is in a jumble right now. AAPL has been bobbing up and down like a prize-fighter.

[walshbj]

If I had to guess I'd say this is preparation for announcing some brand new program at Macworld. You can't announce something new with fanfare without killing the existing partners gently in advance.

If Apple is serious about penetrating the corporate world they'll need big messy programs like Microsoft has. ; )

[ak1808]

Originally Posted by walshbj

If I had to guess I'd say this is preparation for announcing some brand new program at Macworld. You can't announce something new with fanfare without killing the existing partners gently in advance.

If Apple is serious about penetrating the corporate world they'll need big messy programs like Microsoft has. ; )

a) They are not serious about penetrating the corporate world.
b) Strategy is what you do as much as what you do not do.

[Silencio]

Originally Posted by walshbj

If I had to guess I'd say this is preparation for announcing some brand new program at Macworld. You can't announce something new with fanfare without killing the existing partners gently in advance.

Maybe their own in-house version of the Geek Squad, since being an independent Apple consultant is so darned profitable that Apple wants all that revenue for itself now.

But seriously: I'm an independent, Mac-focused consultant myself, and this now-dead program had no impact on me. My business is to sell solutions, not move hardware and software units. I've been very satisfied with all my dealings with Apple Enterprise over the past few years for that kind of thing.

If Apple is serious about penetrating the corporate world they'll need big messy programs like Microsoft has. ; )

They'll also need the big messy programs like Dell and IBM and all the other big hardware vendors have, too. All that support overhead and smaller profit margins probably explain why Apple has not made a bigger push to sell into the enterprise market thus far.

[CREB]

Yes, Apple is becoming more incestuous. This inbreeding should have some interesting results.

[digitalclips]

How long before the smaller independent Apple Dealers get the same treatment?

[roehlstation]

Originally Posted by MoonShadow

Wow. This is a terrible shame.

Without the AABA program, there isn't an Apple store within a 2 hour drive of where I live. Several area schools and a couple businesses rely on the agents to keep them up to date on their hardware and software, and now they'll mostly be cut off... left with only out-of-reach retail stores that don't really care about them personally.

For the first time in a very long time, I'm massively dissapointed in Apple.

Schools have a different program altogether, they have regional reps that deal with schools directly, that program is still in place.

[roehlstation]

Originally Posted by blackbird_1.0

Does this mean no more Circuit City's or CompUSA's with Macs or Mac repairs?

No, this means the number of people that run a Mac resale shop out of their house won't be doing that anymore.

[Abster2core]

Originally Posted by MoonShadow

Wow. This is a terrible shame.

Without the AABA program, there isn't an Apple store within a 2 hour drive of where I live. Several area schools and a couple businesses rely on the agents to keep them up to date on their hardware and software, and now they'll mostly be cut off... left with only out-of-reach retail stores that don't really care about them personally.

For the first time in a very long time, I'm massively dissapointed in Apple.

I did a cursory check on 10 randomly selected AABA agents* and checked their web sites. Three were under construction and only 2 had a but casual reference to a their Apple affiliation. The remaining five had no visible links or references for Apple/Mac and where highly technical/commercial in nature. As per Apple's description, the AABA was bent towards a means to "gain: supplemental revenue".

Whereas, after doing the same via the Apple Consultants Network members section†, all ten significantly displayed their affiliation to Apple and its products and services. As per Apple's description, the ACN was bent towards a means to benefit for "state-of-the-art training and certification".

It would seem that the Authorized Business Agent program isn't commanding enough interest, thus revenues, to warrant its continuation.

If we recall a few years back, that if there were four- six pages of computer ads running in the weekend papers they were mainly for pcs, suppliers and services. For every PC vendor, there appeared to be a couple of dozen consultants offering their services to keep your pc in service. On the other hand, perhaps one small Apple/Mac ad and no related consultants. Obviously none were needed.

Things have changed since. Although now there appears to be more Apple consumer product ads in the mainstream media than for pcs and their vendors, services, etc.

Perhaps the dramatic reduction in hardware prices has affected the arena most, thus the lack of involvement, realistically or imagined.

Am I disappointed? Not at all. As a developer/consultant, it really doesn't pay me to supply or service Macs. The retail, online stores and services department do it better and faster than I, and my clients don't need the extra charges to warrant my efforts. In other words, I tell them were to go, and so far, all have been happy to listen.

* http://agents.apple.com/find/index.html
† http://consultants.apple.com/

[rain]

What they lose is their discount.
5-15% off hardware and software. It was years ago when I worked with a guy who was part of the program, so i'm not sure what the discount was. Saved a chunk o change when we bought 7 new G3's thou.
We would recommend Apple to people, show them our network. If they bought a bunch of Mac's, we would help them get their network going, do a day or two of training, field a few calls.

Some companies took it and ran with it thou. Put on big training course's, did lots of advertising for mac support.
It's a shame Apple is just tossing them out like this. It was these loyal members that kept Apple from going the way of the Commodore in the early 90's. Now that their stock is high and gaining momentum on the market... they say "thanks, bye".

Seems a bit cold, but thats the Apple likes to roll. They have shown a few times they don't care who their 'loyal' customers are.

That said, I'm pretty sure they aren't going to lose much if any business over this.

[Abster2core]

Originally Posted by rain

What they lose is their discount.
5-15% off hardware and software. It was years ago when I worked with a guy who was part of the program, so i'm not sure what the discount was. Saved a chunk o change when we bought 7 new G3's thou.
We would recommend Apple to people, show them our network. If they bought a bunch of Mac's, we would help them get their network going, do a day or two of training, field a few calls.

Some companies took it and ran with it thou. Put on big training course's, did lots of advertising for mac support.
It's a shame Apple is just tossing them out like this. It was these loyal members that kept Apple from going the way of the Commodore in the early 90's. Now that their stock is high and gaining momentum on the market... they say "thanks, bye".

Seems a bit cold, but thats the Apple likes to roll. They have shown a few times they don't care who their 'loyal' customers are.

That said, I'm pretty sure they aren't going to lose much if any business over this.

Perhaps more sofistication is necessary. Based on comparing some of the Business Agent Program vs Consultants Network, it appears that the Business agents are not Apple concentric, more supplemental in nature and rely more if not most on other services for their primary income. In addition, the 'Consultants' require a more invested interest to become certified members.

I really feel that there is relatively little to lose for Apple to discontinue the ABAP.

Apple Business Agent Program: Apple Authorized Business Agents are independent professionals approved by Apple to act as agents for the sale of Apple and third-party products. Solution-focused and experienced, they can provide extraordinary customized service for you and your business.

• Supplemental revenue
• Apple training and support
• Professional backing by Apple
• New opportunities, minimal overhead

Apple Consultants Network: The Apple Consultants Network is a distinguished community of independent consultants certified in Apple technology, who pride themselves on delivering the highest quality of service to their clients. As a member you would gain invaluable resources and training directly from Apple to help build and maintain a successful consulting business.

• State-of-the-art training and certification
• Business and peer connections
• Apple's online referral directory
• Use of the Apple program logo
• Resources, promotions and discounts

P.S. Sounds like your former employer was a Consultant.

[JeffDM]

Originally Posted by roehlstation

No, this means the number of people that run a Mac resale shop out of their house won't be doing that anymore.

Was that really happening?

[Abster2core]

Originally Posted by JeffDM

Was that really happening?

Yes. Many are. Again, quite a few web sites are down, don't display Apple anywhere and/or, have no brick/mortar contact info.

[JeffDM]

Originally Posted by Abster2core

Yes. Many are. Again, quite a few web sites are down, don't display Apple anywhere and/or, have no brick/mortar contact info.

I don't know if that's an indicator though, I know a lot of small single location shops that don't have a web site or a very good one - but the actual shop is still often good. They weren't Apple-affiliated or sold/serviced Apple products, but the quality of the web presence can often be quite different from their real presence.

[Haggar]

They are not serious about penetrating the corporate world.

Then what's with web sites like macenterprise.org or Tom Yager's Enterprise Mac blog in Infoworld? Should these guys just give up and shut down because they are deluding themselves?

Even Apple has an IT Pro web site: http://www.apple.com/itpro/

Is that site nothing more than a token gesture by Apple designed to give the impression that they care about enterprise computing? Isn't Apple itself a corporation? If so, they must not be using Macs themselves.

The next time some PC punk says stuff like "Macs aren't suitable for businesses" or "I would never buy a Mac server", think about how you are going to respond. Based on your belief that Apple is not serious about the corporate world, your only choice would be to agree with PC Punk's statements. Anything else would be self contradiction.

[roehlstation]

Originally Posted by digitalclips

How long before the smaller independent Apple Dealers get the same treatment?

Those people are free to pursue an ACR (Apple Certified Reseller) status, this status isn't going anywhere (at least not for a long time) it is what the large stores have. (MicroCenter, MacMall, Circuit City ..etc.) They just have to do a certain volume every year.

[Abster2core]

Originally Posted by JeffDM

I don't know if that's an indicator though, I know a lot of small single location shops that don't have a web site or a very good one - but the actual shop is still often good. They weren't Apple-affiliated or sold/serviced Apple products, but the quality of the web presence can often be quite different from their real presence.

When you go to a consulting firm web site and there isn't a contact person, street address or phone number, I would be very suspect.

[freshh20]

Not easy for rural america to stay on top of technology. Cable and Phone companies will not provide service. Government will not help like they did with electricity. Now when start ups can't supplement selling apple solutions the public and apple gets hurt. Of course all decisions are not hurting apples bottom line as all decisions are dollar based. It is the rural customer that will continue to have problems. 4 and 1/2 hours to MSP and 4 hours to Milwaukee, and 6 hours to Chicago. Not possible to start a store up here and attain the volume goals that have been set. If it was easy apple would open a store.

[JeffDM]

Originally Posted by Abster2core

When you go to a consulting firm web site and there isn't a contact person, street address or phone number, I would be very suspect.

Maybe, but that's not a proof of the argument. It's hard for me to explain, but for most people, I don't think they look on the Internet to find a local business. The Internet isn't their market, nor is it their means of promoting themselves because their market doesn't need a business that has a web site.

[Plague Bearer]

We were participating in this program. We loved it. We are a Mac only Brick n mortar reseller. We have other programs to fall back on. But, this particular program had a lot of benefits. We are too small to carry a huge selection of product or be able to purchase product in sufficient volume to get any price break worth even mentioning through the distributor channels. Below a certain size the distributors really aren't your best friend. As a small reseller, it is aggravating to know that a customer could buy a computer from Apple in the education channel at a better price that you could buy it from the distributor. This program let us sell anything available from the Apple store. And we didn't have to expend resources to keep it up to date. There were specials and discounts that we could never otherwise offer. Being able to sell the refurbished machines in particular was very nice. That alone put a mac in the hands of people who might not be able to afford one. Or put them in a nicer model of Mac than they could afford otherwise. Financially, We made less per sale than other channels, But, It was worth it because we didn't have to deal with the inevitable problems with Apple double dinging an account, Pairing the customers order with it's payment. Which each is handled through separate methods and must be re-associated AT Apple. Which leads to an inevitable lost order or miss pairing of order and payment. I wish this program had offered more specials like the back to school iPod special and the current printer special. And I wish it offered more discount incentives which were useful for closing a more difficult sale. It was a great sales tool. it had some small problems. Tracking a order for our own records was nearly impossible. I hope Apple will consider making this online store available to their resellers and perhaps consider expanding it's specials and incentives. A black Friday special blowout would be AWESOME! As it is we'll be closed instead.

[MacinTek]

Originally Posted by Abster2core

Yes. Many are. Again, quite a few web sites are down, don't display Apple anywhere and/or, have no brick/mortar contact info.

I am a Business Agent and a Certified Member of the Apple Consultants Network. I used my AABA status so I could order product, prepare for installation and install that product seamlessly... as a single resource for my clients. My Business' website (www.macintek.com) has its affiliation quite prominently displayed.

I, for one, am insulted by the arrogance of this cancellation. There are agents who sell six-figure numbers every year and those who barely make the twenty-grand quota. Apple's margins on those sales are plenty enough to cover the cost of the program. Having been one of the pilot group guinea pigs, I've watched the program grow... even to the point where Apple no longer considered it a "Pilot Program". What I have seen is the politics of Corporate Apple... there are those who see a value in grass-roots evangelism of the brand (classic Apple philosophy) and those who believe in a more formal model where the brand can only be represented by uniformed, salaried employees of the government... err... corporation (Apple Retail, Small Business and Enterprise Channels).

The model that our program fit was one that encouraged cooperation, one that saw a niche for both the retail space and a more personal, consultancy-based approach. In essence.. there's room in the retail world for both of us so... let's consider ourselves on the same team... after all, it ought to be US against Windows, not US against US.

Unfortunately, a more aggressive and less ethical model won a battle that many didn't even realize was being fought...
I first saw it when, at MacWorld, I noticed a small (AABA) table just inside the Hall, against the wall... I then saw another Table right as you enter the Hall at the front of the Apple Booth with a banner advertising Apple Business Sales. They had brochures. We had none. The had a link on the main Apple online store. We didn't. They appeared to have the support of Apple, we didn't. We have always been the red-headed stepchild.

The next year... just after Thanksgiving... I became aware of the internal policy of Apple Retail and Small Business Channels to raid AABA clients' saved shopping carts and use that information to hijack our customers. This is not paranoid suspicion, it was confirmed by Apple as a policy of the channel.

Then, there was the on-again, off-again access to refurbs, the iPhone sales and, finally, the virtual abandonment of the AABA store website, only to have that rectified less than a week before the program's cancellation notices were sent out... The web site was fixed the same time the notices were begin printed. Someone at Apple is getting a sick thrill out of teasing AABAs. They clearly don't respect us... and I have nothing but distain for them.

Please note that I am not referring to anyone who worked so hard to make the program succeed (which it did). I am referring to the greedy, self-possessed control freaks who fought against a program that wasn't harming their bottom line in the least.

Apple, as a corporation, has fallen into the same mold as HP... they had a fine philosophy for many years... then, someone hires an outsider to ramp up the retail channel (week before last) and, in their arrogance, they decide to make cuts for the sake of making cuts to establish themselves. And we got trampled. 'Sounds like a stereotypical mega corporation to me...

What ever happened to "Think Different"?

[amishman]

Originally Posted by Plague Bearer

We were participating in this program. We loved it.

I also am a participating member for the last year or so. I really liked it. I was invited by Apple to join as I worked for an Apple VAR at the time and to continue being an VAR, you needed to buy $100K per year. Sometimes we met that... other times we did not. So, they killed out account and I decided to join as an independent to the Business Agent program.

I am also bummed it is being disbanded. It was a nice way to earn a few $$ off of the referrals and helping Apple sell more Macs into business markets. I install these iMacs as POS systems at retail stores. So, having an Apple affiliation was nice but now I guess I just send these clients away to get their own computers.

Apple always seems to do stuff like this. They had a big VAR shakeup years ago where good stores seemed to be pinched out. Maybe they were making way for the newer Apple Stores. Who knows.

Anyway, I still love Apple but today I am just a pissed off family member because I am being cut-off from the family again. I nnce was a VAR, then an Apple Business Agent, and maybe now I will become a hobo.

tj

[amishman]

Originally Posted by amishman

I also am a participating member for the last year or so. I really liked it. I was invited by Apple to join as I worked for an Apple VAR at the time and to continue being an VAR, you needed to buy $100K per year. Sometimes we met that... other times we did not. So, they killed out account and I decided to join as an independent to the Business Agent program.

I am also bummed it is being disbanded. It was a nice way to earn a few $$ off of the referrals and helping Apple sell more Macs into business markets. I install these iMacs as POS systems at retail stores. So, having an Apple affiliation was nice but now I guess I just send these clients away to get their own computers.

Apple always seems to do stuff like this. They had a big VAR shakeup years ago where good stores seemed to be pinched out. Maybe they were making way for the newer Apple Stores. Who knows.

Anyway, I still love Apple but today I am just a pissed off family member because I am being cut-off from the family again. I nnce was a VAR, then an Apple Business Agent, and maybe now I will become a hobo.

tj

I also wonder why Apple did not just allow Apple Consultants to have a similar online store as the business agents. Maybe they could have just closed down the Apple Business Agent program and rolled it together with the Apple Consultant program so you need to meet certain criteria to become one (ie: help selling $50K per year of product or something) and see how this flew. This would take out the one time sellers of $2000 per year and focus on groups that do help move some product for a living.

I guess I don't really see much benefit to a consultant not being able to make some profit from sales of Apple equipment. Every little bit helps keeps us going and pushing the Apple envelope.

tj

[hvance]

While I love Apple products, the way they are treating their folks who got them where they are, is not unexpected. To summarily drop them is in poor taste at best, immoral at worst, which I think Apple has done. I have just had a miserable experience at an Apple store. It is the most ill run, ill conceived retail store I have ever visited. Apple had best be glad that they are on a roll right now, but rest assured they will crash and crash very hard. This is the easiest call to make I have ever seen. You can only live on glitz for so long. Apple desperately needs to re-think their strategy. Customer service is not like their products. If Apple wants to expand their base from Apple lovers to more mainstream they had better get up to speed. Customers will only put up with this inflated ego attitude for so long. I truly hope they change their ways for I am a long time Apple lover, not a Johnny-come-lately to the Apple party.

[tdamon]

Originally Posted by hvance

While I love Apple products, the way they are treating their folks who got them where they are, is not unexpected. To summarily drop them is in poor taste at best, immoral at worst, which I think Apple has done. I have just had a miserable experience at an Apple store. It is the most ill run, ill conceived retail store I have ever visited. Apple had best be glad that they are on a roll right now, but rest assured they will crash and crash very hard. This is the easiest call to make I have ever seen. You can only live on glitz for so long. Apple desperately needs to re-think their strategy. Customer service is not like their products. If Apple wants to expand their base from Apple lovers to more mainstream they had better get up to speed. Customers will only put up with this inflated ego attitude for so long. I truly hope they change their ways for I am a long time Apple lover, not a Johnny-come-lately to the Apple party.

I don't know what Apple store you went to or why you had a bad experience, but the majority of things I hear about the Apple Retail Stores are positive. My personal experience has just been that the stores are often under-staffed, leaving customers waiting for too long. Other than that, it is a good, unique shopping experience.

Also, if you have ever had to utilize part of a warranty on an Apple product (be in the short-term included warranty or the extended AppleCare), it is unlikely that you would be able to speak negatively of Apple customer service.

My $0.02.

[nkron]

I am also a "canceled" ABA and would like to find a similar arrangement with a reseller. Does anyone know if any of the authorized resellers offer commissions to consultants who bring them business ?

[JesterDev]

Please excuse my ingorance on this topic. I'm rather new to Macs. Does this mean that places like MacMall and other sites will soon be gone? I just bought a Macbook back in March (kind of a test it all out kind of thing) and I am planning on buying a MacPro (Penryn) for myself and an IMac for my wife. However I wanted to buy one from an online retailer that gave me a coupon for a discount on my next purchase.

I guess If I'm understanding this right, that company will be gone soon..

[CREB]

Originally Posted by hvance

While I love Apple products, the way they are treating their folks who got them where they are, is not unexpected. To summarily drop them is in poor taste at best, immoral at worst, which I think Apple has done. I have just had a miserable experience at an Apple store. It is the most ill run, ill conceived retail store I have ever visited. Apple had best be glad that they are on a roll right now, but rest assured they will crash and crash very hard. This is the easiest call to make I have ever seen. You can only live on glitz for so long. Apple desperately needs to re-think their strategy. Customer service is not like their products. If Apple wants to expand their base from Apple lovers to more mainstream they had better get up to speed. Customers will only put up with this inflated ego attitude for so long. I truly hope they change their ways for I am a long time Apple lover, not a Johnny-come-lately to the Apple party.

I share the same sentiment as you. The Apple store that is three miles from my residence is terrible when it comes to customer service so I drive twenty-three miles to go to one that is decent about customer service and to purchase items. In the trading circles I deal with there is the consensus that Apple is becoming like other corporations equating to less interest in holding Apple stocks or options. As much as I enjoy, and as long as I have been purchasing Apple products (since 1984), I too am changing my stance on Apple unless something changes, which I doubt.

[CREB]

Originally Posted by tdamon

I don't know what Apple store you went to or why you had a bad experience, but the majority of things I hear about the Apple Retail Stores are positive. My personal experience has just been that the stores are often under-staffed, leaving customers waiting for too long. Other than that, it is a good, unique shopping experience.

A unique shopping experience is private shopping at Saks Fifth Avenue, Nordstrom, or having your clothes hand tailored from a shop in Savile Row. Apple has followed the Bang & Olufsen model for stores regarding tenant improvements and FF&E, but not staff.

[nkron]

Originally Posted by JesterDev

Please excuse my ingorance on this topic. I'm rather new to Macs. Does this mean that places like MacMall and other sites will soon be gone? I just bought a Macbook back in March (kind of a test it all out kind of thing) and I am planning on buying a MacPro (Penryn) for myself and an IMac for my wife. However I wanted to buy one from an online retailer that gave me a coupon for a discount on my next purchase.

I guess If I'm understanding this right, that company will be gone soon..

The thread is discussing another group of people/ businesses that Apple used to distribute it's products called Business Agents.
There is no reason to believe that MacMall or similar resellers are being dropped by Apple

[tdamon]

Originally Posted by CREB

A unique shopping experience is private shopping at Saks Fifth Avenue, Nordstrom, or having your clothes hand tailored from a shop in Savile Row. Apple has followed the Bang & Olufsen model for stores regarding tenant improvements and FF&E, but not staff.

Private shopping? You mean like the Personal Shopping that Apple Stores offer where you make an appointment and have an Apple employee only helping you for an hour?