20 Mar 2003
Lindows.com yesterday unveiled a revenue sharing deal which it claims will make it more attractive for PC builders to ditch Windows and go with its Linux-based operating system.
The company claimed that its RevShare programme allows small and medium-sized computer system dealers to increase profit margins by sharing in after-market revenue, even after shipping their systems.
Lindows explained that the sales initiative will work through a percentage revenue share deal on any added value applications that customers may buy after purchasing their PCs.
So, if a customer buys services or premium upgrades from Lindows, the system builder which sold the computer system will receive a margin of up to 20 per cent of the transaction's profits.
"Many people think it's the Dells and IBMs of the world that make most of the computers worldwide, and that's not true," said Michael Robertson, chief executive at Lindows.
"It's the smaller computer builders with the smaller budgets that are providing much of the hardware for homes and businesses.
"Lindows' RevShare partner programme makes it very easy for builders, large or small, to directly benefit from software and service sales generated from LindowsOS computer systems that they ship into the marketplace."
The Linux distributor pointed out that it is targeting the small PC system builders that account for more than 60 per cent of PCs sold globally.
Larry Kettler, vice president of sales at Lindows, said: "White box manufactures operate on razor-thin margins in an extremely competitive market.
"Coupled with the consistent drop in hardware component prices, this makes RevShare a welcome relief to the PC hardware industry."
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