MapInfo's VAR strategy.

* MAPINFO'S VAR STRATEGY

Five years ago, a startup called MapInfo Corp. began selling a PC-based alternative to high-end geographical information system3. Like many companies in emerging markets, MapInfo quickly discovered that its customers were enthusiastic--but usually needed plenty of hand-holding, training, and applications development help. That's not a job you can do over the phone or through dealers who are just box-pushers," says senior vice president Barry Bycoff. Our success really depended on building a network of value-added resellers."

Despite "four years of war stories," MapInfo managed to put together a highly productive VAR channel, which currently generates more than 40% of the company's revenues. Bycoff says the network includes more than 200 active VARS, many of which sell geographical data or specialized applications that extend MapInfo's basic desktop mapping capabilities.

We recently asked Bycoff and Kevin Harrison, MapInfo's vice president of sales, about the lessons they learned in building a VAR channel. Their answers:

* Restrict distribution: MapInfo sells only through authorized VARS, says Bycoff, so there's virtually no price competition from mass-market dealers. "VARS can sell our products at list price, and we'll try to protect the incumbent in a territory if he's doing a good job."

* Focus on small VARs: Two years ago, MapInfo decided to sign up about 25 "larger, better-financed" resellers to help boost sales volume. Harrison says the larger dealers were "somewhat successful" but often couldn't afford to deliver personalized service. Now, the company's VAR recruiting efforts focus primarily on consultants and small systems integrators. "There are no large VARS," says Bycoff.

* Generate customers, not just leads: Before passing a lead on to a VAR, MapInfo's telemarketing department usually qualifies the customer and may even close the sale. The VAR'S role, says Harrison, is to add enough service and support to convert a onetime sale into an ongoing relationship. If he services the customer correctly, he's built an annuity."

* Deliver high-quality support: The hot button for most VARS, says Bycoff, is broadbased" support and training. MapInfo has three field support reps who visit local VARS, and the company hosts an annual VAR conference that offers sneak previews of upcoming products. We spend a lot of money on support," Bycoff notes, "but our marketing costs are low because our VARS really push the product."

* Insist on committment: To become an authorized MapInfo VAR, a reseller or consultant has to make a financial commitment-- $2,000 up front and a promise of $10,000 per year in orders--and attend a training course. If a VAR fails to live up to its $10,000 quota, MapInfo simply stops passing on customer leads. "Being an authorized dealer shouldn't be too easy," says Bycoff.

Barry N. Bycoff, senior vice president; Kevin Harrison, vice president of sales, MapInfo Corp., 200 Broadway, Troy, N.Y. 12180; 518/274-8673.