AppSmart announced a funding program that executives and peers say stands alone in the industry.

The AppDirect division unveiled AppSmart Invest, which delivers upfront capital and recurring payments to program members. AppSmart will provide an upfront payment and a residual monthly payment tied to the technology adviser’s book of business. It also will provide the support of its back office.

AppSmart’s Tim Basa

“This state-of-the-art program offers AppSmart’s extensive ecosystem of sales and support to owners,” said Tim Basa, vice president of sales. “It gives owners the flexibility to continue growing their businesses without having to exit. In addition to a generous upfront cash amount, they continue to receive long-term residual payments — we call that smart funding.”

Don’t confuse this with an M&A program. Although AppSmart has purchased multiple master agents – most recently MicroCorp – it isn’t acquiring members of the Invest program.

Moreover, AppSmart executives say Invest differs considerably from how a bank, private equity firm or M&A consultant would engage with channel partners. For example, Invest members can access funds more quickly and will retain control of their business.

“This is the best of both worlds; the business owners get upfront capital, evergreen recurring commissions and maintain full ownership of their business,” said Brian Leonard, AppSmart’s vice president of marketing.

Positive Feedback

Partners praised the program.

GCG’s Joel St. Germain

“Out of all the offers my business received, there was simply nothing out there that resembled the type of financial benefits AppSmart Invest offers. It made our decision to choose AppSmart a simple one,” said Joel St. Germain, chief executive officer of Global Communications Group. “AppSmart truly represents the future of how businesses find, buy and manage technology services, and GCG is thrilled to continue growing with this innovative program at such a pivotal time in the industry.”

GCG and four other companies belong to the Invest program. On Track Communications president Bill Mansfield also spoke highly of the initiative.

“It’s refreshing to work with a company that understands my life goals and my channel-based business,” Mansfield said. “From our first conversation, it was clear that AppSmart Invest provided a unique opportunity and they delivered on it in every way.”