I started this conversation with one of my biggest partners in South Florida today. You see, he’s been a good Microsoft partner and selling a bunch of their software, lining up references, signing up people for Software Assurance and basically sending $$$ to Las Vegas and Redmond by the truckload. He has become obsessed with what I call Microsoft PH (“Point Whoring”), a disease similar to clipping bar codes from a Marlboro box so you can give yourself a leather jacket along with cancer. Every now and then Microsoft calls him up and tells him that he needs to become a certified partner. Keep in mind that he is a one man shop.

Does it make sense? My answer was, in short: For us, Yes. For you, No. But they call me all the time! Yes, it’s their job to make you spend $1,699 for what you already get for $299.

Here is the dirty little secret: Customers don’t know the difference between the Microsoft Certified Partner, Professional, System Administrator or Desktop Support Technician. You got a Microsoft logo and did something you didn’t want to do, thats all it says. Is it a huge benefit for a Small Business guy? Not at all. There certainly are advantages in terms of training, “free* software, support calls”, and Microsoft Connections but the Small Business team at Microsoft has worked so hard on making the SBSC valuable that you’re more likely to get value out of their training than the SQL 2005 bootcamp.

But.. But.. Money.. In the pocket, it burns, it burns!

Disclaimer: This IS going to hurt. Here is the advice I gave him:

Vlad: Spend $1,600 on marketing
Vlad: or training
Vlad: or investment - buy a new box
Partner: I HAVE!!
Vlad: lot better ways to blow $1,600 than to give it to Microsoft
Partner: both
Vlad: then XXXXX, I got some advice for you
Vlad: go to the bank, ask for a “savings account”
Vlad: and start XXXXXXX paying yourself!!!

Now I know it is unamerican not to spend every last dime you earn but this has to be said. Banks have these special accounts that you can put money into so you don’t spend it. Hold on with me, I promise I have a point. It’s like time travel – you put your money into this account and then you can spend it in the future. Over time, that pile of money gets bigger, and bigger, and bigger. It is a huge secret and a loophole in the banking system but trust me, it works.

Here is what I think most Americans don’t get.. when everyone talks about using December to buy stuff and get write-offs they are not suggesting you go and clear your bank account. Tax writeoffs on investment and major purchases are great when you’re trying to hide from that next tax bracket or have made significantly more this year than in the past and just want to manage a smaller tax impact.

But it does not… I repeat… does not mean that you have free money. So if you do go and blow your money on something meaningless in 2006, you will have $1,600 less. If you don’t spend it (yes, through the “savings account scam”) you may be paying 20–30% tax on that income and still get to keep more than a $1,000. To try it from another angle, if you don’t spend the $1,600 it will not disappear from your account on January 1st. Yes, you may pay some taxes on that income, but it will still be there. It’s not spend or die.

So your Vladville tip of the day is: “start fXXXXXX paying yourself!!!!”

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