Operational Overview

1. Operational Overview Slides

2. What this Deck Will Cover
• Tax Exemption Certificate
• Subscriptions
• Invoicing & Billing
• Customer Contract Requirements
• Payment Methods

3. Tax Exemption Certificate Required
• Any US-based partners located in a taxable state must submit a Tax Exemption Certificate
before they start submitting orders.
• Do so by logging a case on the Partner Community:
– Case Type: Orders & Contracts
– Sub-type: Billing Dispute
– Subject: Tax Exemption Certificate
• Taxable states include:
Alabama
Arizona
Colorado
Connecticut
District of Columbia
Hawaii
Idaho
Illinois
Indiana
Kansas
Kentucky
Louisiana
Maine
Massachusetts
Michigan
Minnesota
Mississippi
Michigan
Minnesota
Mississippi
Nebraska
New Mexico
New York
North Dakota
Ohio
Pennsylvania
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Washington
West Virginia
Wisconsin
Wyoming

4. ISVForce Overview

5. ISVForce Subscriptions & Invoicing Overview
• Month-to-Month subscription terms
• Invoices are auto-generated upon order activation and emailed to the identified billing
contact (from your Term Sheet)
– The subscriptions auto-renew monthly per customer, until Cancellation is received
– If no Cancellation or Reduction is received, the invoice will continue for that customer
• Cancellations and Reductions must be received at least 30 days prior to the next billing
date for each customer
WARNING: even if your customer is no longer using your application,
invoicing from Salesforce will continue until a cancellation is received. You
are required to submit a cancellation order no matter what.

6. ISVForce Subscription Term: Monthly & Auto-Renewing
Initial Order
Start of monthly
subscription
Eligible to
cancel
DEADLINE!
30 day minimum requirement to submit for
cancellation of subscription
Establish renewal communication with
customer
Auto-Renews
Start of
month 2 of
subscription
MAY
JUNE

7. ISVForce Subscription Term: Details
• An initial order for a net new customer, once provisioned, will establish the start date of that monthly subscription
• Once the monthly renewal date is reached your customer’s subscription will auto renew with all the licenses/
products that were ordered in the previous month.
• You are contractually required to submit a Reduction or Cancellation Service Order a minimum of 30 days prior to
the anniversary date via the Channel Order Application.
– Order will Reduce or Cancel on the anniversary date
– Reduction = Request to remove a number of licenses or product from your contract with Salesforce
– Cancellation = Request to cancel the contract in its entirety
• It is important you build a strong renewal practice into your business processes to maintain compliance to
Salesforce 30 day cancellation policy
• For example: Communicate to your customers that they must cancel with you 45 or 60 days prior to monthly anniversary
of when the subscription will be auto-renewing. This creates a buffer between your customer cancelling with you and you
cancelling with Salesforce.

8. ISVForce Invoicing Model: Monthly Billing
Initial Order Add On Order
5 users
3 Users
Total Users
8 Users
5/14 – 6/13 6/5 – 6/13 6/14 – 7/13
Total Users
8 users
7/14 – 8/13

9. ISVForce Invoicing Model: Details
• Salesforce bills ISVForce partners on a monthly basis
• Salesforce delivers one invoice per customer / per month for ISVForce
• Invoices will be delivered throughout the month, based on the date the customer originally began
service.
• Salesforce will pro-rate all Add-On Orders
• If an add-on order occurs in the middle of a customer’s billing cycle you will see partial invoices as
they have been pro-rated for the days of service

10. ISVForce Requirements for Contracts With Customers
• List product per your name and your branding.
– Do not describe it as the “Salesforce” app or “Force.com” app. Do not use Salesforce
branding
• Clearly list what you charged to your customer in subscription fees
– Per User or Per Org
– Pricing must be clear in the case of an audit by Salesforce
• List additional service fees separately
– For example: implementation fees, on-boarding fees, customer support fees
• Your customer must have minimum one month subscription term
• Pass auto-renewal terms along to your customer
– Customers should know they need to actively cancel with you just as you must actively
cancel with Salesforce to stop invoices.

11. ISVForce Payment Methods
• You will pay Salesforce by Wire Transfer on Net-30 terms
– Instructions for wire payments will be on the invoices
• Invoices must be paid within 30 days of receipt
• When you reach 10 or more active customer (subscriptions), you can request approval to get monthly Account
Statements
– Request Account Statements by logging a Case on the Partner Community
• Type: Orders & Contracts
• Sub-Type: Billing Dispute
• Subject: Account Statement Request
• Account Statements
– Sent on the 10th of each month to your Billing Contact (provided via the Term Sheet)
– A summary report listing all invoices yourreceived in the prior month
– Payment is due by the 30th of the month in which the statement was received

12. OEM and VAR Overview

13. OEM and VAR Subscriptions & Invoicing Overview
• Subscription terms are 1 year (annual subscriptions)
• Invoices are auto-generated upon order activation and emailed to the identified billing contact
– Invoices re-occur monthly after order activation and remain monthly for the durations of the subscription term
– If no Cancellation or Reduction is received prior to renewal, the contract will automatically renew itself for
another full year
• Cancellations and Reductions must be received at least 30 days prior to the annual renewal
date for each of your customers
WARNING: even if your customer is no longer using your application,
invoicing from Salesforce will continue until a cancellation is received.
You are required to submit a cancellation order no matter what.

14. OEM and VAR Subscription Term: Annual & Auto-Renewing
Establish renewal communication with
Initial Order Auto R enews
Start of annual
subscription
Year 2 of annual
subscription
DEADLINE!
30 day minimum requirement to submit for
reduction of licenses or cancellation of
subscription
customer

15. OEM and VAR Subscription Term: Details
• An initial order for a net new customer, once provisioned, will establish the start date of that annual
subscription.
• Your end customer’s subscription will auto renew on annual anniversary date with all the licenses/products
that were ordered in the previous year
• If you want to Reduce or Cancel your Service Order this must be submitted via the Channel Order
Application a minimum of 30 days prior to the anniversary date
– Order will Reduce or Cancel on the anniversary date
– Reduction = Request to remove a number of licenses or product from your contract with Salesforce
– Cancellation = Request to cancel the contract in its entirety
• It is important you build a strong renewal practice into your business processes to maintain compliance to
Salesforce 30 day cancellation policy
– For Example: Communicate to your customers that they must cancel with you 45 or 60 days prior to annual
anniversary that the subscription will be auto-renewing. This creates a buffer between your customer cancelling with
you and you cancelling with Salesforce.

16. OEM and VAR Invoicing Model: Monthly Billing
Initial Order Add On Order
5 users
3 Users
Total Users
8 Users
5/14 – 6/13 6/5 – 6/13 6/14 – 7/13
Total Users
8 users
7/14 – 8/13

17. OEM and VAR Invoicing Model: Details
• Salesforce invoices OEM and VAR partners on a monthly basis
• Your initial order dictates the start of the subscription term, the annual auto-renewal
date and the billing anniversary date
• Salesforce delivers one invoice per customer / per month for ISV
• Invoices will be delivered throughout the month, based on the date the customer originally began
service.
• Add-on orders will be pro-rated and are co-terminus with the auto-renewal date
• If you see partial invoices, it is likely an add-on in the middle of a customer’s billing cycle

18. OEM and VAR Requirements for Contracts With Customers
• List product per your name and your branding.
– Do not describe it as the “Salesforce” app or “Force.com” app. Do not use Salesforce
branding.
• You must pass through Salesforce Service Agreement terms to your
customers.
– These may be consolidated with your contract terms to customer as addendum, exhibit,
hyperlink, click-through agreement, etc.
– Customer acceptance of these terms must be recorded and retained in case of an audit by
Salesforce.
• Clearly list what you charged to your customer in subscription fees
– (per-user or per-unit) and frequency (per-month or per-year)
• List additional service fees separately
– For example: implementation fees, on-boarding fees, customer support fees
• Your must have minimum one year subscription term with your
customer.
• Pass auto-renewal terms along to your customer.
– Customers should know they need to actively cancel with you just as you must actively
cancel with Salesforce to stop invoices.

19. OEM and VAR: What Happens at Renewal Date?
• Remember that each customer will have their own renewal date, based on when
their specific agreement started
• If you do not cancel, the contract renews for a full year and cannot be canceled until
the end of the following year
• If you submit a reduction during the initial year, the reduction will take place at the end
of that year
• If you cancel, the cancellation will take place at the end of that year

20. OEM and VAR: Payment Method
• US-based Partners will start on a Direct Debit payment method
– Each invoice is paid automatically upon order activation by a debit against partner’s bank account
– E-mails will still be sent to your Billing Contact address (from you Term Sheet) as confirmation of charges
– Direct debit banking information, account and routing numbers, should be supplied to Salesforce securely
over the phone. You will be unable to transact if this information is not recorded.
– Please log a case via the Partner Community to initiate this call.
– Case Type: Ordrers & Contracts
– Case Sub-Type: Billing Dispute
– Subject: Direct Debit Information

21. OEM and VAR: Payment Method (Continued)
• Non-US Partners will start on Wire Transfer, Net 30 payment method
– Partners can make one or more wire transfer payments across multiple customer invoices, honoring the Net
30 Term from receipt of each invoice. You may pay the invoices individually or all at once.
– E-mails sent to your Billing Contact address (from your Data Sheet). They will contain details on where to
send the wire payments in your region.
– Partners on Direct Debit can be moved to Wire Transfer once they reach $5,000 USD or more in monthly
billings. Please request approvals through your ISV AE.

22. Next Steps
• Follow On-Boarding Checklist
• Review all material in the Partner Community – Distribute page