Apple pulls plug on Authorized Business Agent program
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."
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."
Comments
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.
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'???
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.
If Apple is serious about penetrating the corporate world they'll need big messy programs like Microsoft has. ; )
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.
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.
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.
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.
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/
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.
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.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?
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.
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.
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.