Even though it exists, many of you may have never heard of a company called Amway1.
When I was a young man, at least once a week, there was a big promotional show on television about Amway products. In addition, every time it had a convention of Amway distributors, it would be almost like the Super Bowl in terms of attendance and hoopla.
At those conventions, it always recognized success regarding the "dollars of company revenue" and "product sales (units)" the leading resellers had achieved during the past year.
Despite the tens of thousands of participating Amway resellers who appeared to be making money hand over fist, the FTC began an investigation into whether Amway was possibly the largest pyramid scheme in the US.
After years of investigation, the FTC finally ruled that it was not a pyramid scheme for several reasons. Still, it required Amway to label its products with a message that average resellers make little or nothing on their products.
Not long after that, Amway was involved in a significant class action settlement, which resulted in the company paying out $56 million to former resellers.
I called today's article Appway for a reason. Not because I want to compare Top 100 to Amway, but contrast its business decline with your potential success in reaching Top 100 status and beyond.
In my article, More Top 100 Clues from Award Recipients, I stress the importance of apps, especially as they relate to award categories like QBO Appology, QB-Desktop Integrations, QBO-Advanced Mid-market Specialist and QB Enterprise-Large Business Specialist.
Today, I want to discuss the importance of apps as they relate to the 2023 Top 100 list makers. To do this, I've spent considerable time analyzing the statistics relative to app scoring by all candidates.
This data is based on domestic ProAdvisors answering Part 1 of the QuickBooks Ecosystem: Apps & Software section of the official application form (shown below).
While the optional Part 2 of the app evaluation has much more bearing on those award categories I mentioned a couple of paragraphs back, Part 1 directly affects every award category and, by doing so, the Top 100 awards as a whole.
As shown in the illustration (above), we are measuring five distinct types of app interaction within Part 1: App Use, App Referrals, App Resales, App Certification and App Implementer status.
Let's look at what the numbers tell us about each category, the 2023 applicants and the Top 100 ProAdvisors.
As it turns out, only three of the 75 apps in the app list received no activity by any 2023 applicants. While I won't mention them here, you can count on the fact they will be removed from our 2024 formal application.
App Use
This is a simple enough app interaction measure—I shouldn't have to define it formally. You should have checked the box if you use the app in your own practice (or had any time after December 2021 until you completed the application form).
The typical ProAdvisor completing the formal application reported using more than 24 of the 75 apps in their practices. Forty-one of the 75 apps had a median selection frequency or higher.
The highest ranked 24 apps from a ProAdvisor "use in practice" standpoint were QuickBooks Time, Melio, RUN by ADP Payroll, DocuSign, Bill (aka: Bill.com), Gusto Payroll, Tax1099.com, Paychex, Mailchimp by Intuit, Transaction Pro (Utilities), Rewind Backups, Square POS, Dext Prepare, Expensify, Ignition, Fathom Reporting, Online Backup & Restore, HubSpot, Guideline 401K, Bulk Import Excel, Uncat, Veem, AvaTax and A2X.
This list shows you what your peers are personally using in their practices or chosen to make at least themselves thoroughly familiar with in perhaps determining if one of these apps might enter their "app referral stack."
For those who just made it for the first time into the Top 100 or those on this year's first Top 25 Up-n-coming ProAdvisor list, I would recommend you thoroughly review this list to identify apps your peers feel worthy for their practices that you might not have considered.
App Referrals
In this category of app interaction, we were looking for a "registered referral partner" status in which you have had referrals resulting in your client either purchasing or subscribing to the app, essentially any time after December 2021.
Of those ProAdvisors checking the "I make referrals to this app" box, the average applicant did so for 18.6 of the 75 apps in our list. Only 8.6 of the 75 apps had a median selection frequency or higher.
The most frequent 19 apps selected by applicant ProAdvisors as their referral were Gusto Payroll, QuickBooks Time, Bill (aka: Bill.com), Melio, RUN by ADP Payroll, AvaTax by Avalara, Expensify, Rewind Backups, SOS Inventory, Transaction Pro (Utilities) Fathom Reporting, Webgility, Tax1099.com, Fishbowl Inventory, Paychex, Dext Prepare, Knowify Construction, Method CRM and DocuSign.
According to our list, these are the 19 most common "successful" referrals by Top ProAdvisors, at least if they answered based on our definition. This is an impressive "app stack" covering a wide range of clients' everyday needs, whether using QuickBooks Online or QuickBooks Desktop.
The initial six in the list work with both platforms, as do at least eight of the remaining apps.
Newbies—or those ProAdvisors who didn't make this year's Top 100 ProAdvisors or Top 25 Un-n-comers—might consider the ramifications of not having these app relationships. On the other hand, you may find that a focus outside the typical might be beneficial, and you want to offer referrals to alternative apps to the group used by so many of the Top 100.
Either way, app interaction at the referral level has a significant impact on your app score in the Top 100 process.
App Reseller Status
Insightful Accountant recognizes the unique relationship that exists when a ProAdvisor is a formal 'Reseller' of an app or software, which is why we do not ask applicants to disclose specific sales dollars or volume information related to their sales in Part 2 of our App analysis; however, that doesn't preclude from asking about "status as a Reseller" in Part 1.
So we poll our applicants about their status in formal reseller arrangements with any of the 75 apps on our list.
Concerning the applicants responding, the typical ProAdvisor had slightly more than five referral arrangements between December 2021 and their application date. The median selection frequency for the 75 apps was 2.3.
The five most frequent apps with which ProAdvisors have resale arrangements are QuickBooks Time, Gusto Payroll, Bill (aka: Bill.com), Rewind Backups and Dext Prepare.
As far as our Top 100 applicants are concerned, there is a significant difference between referring a client to an app instead of reselling apps through a formal arrangement. Perhaps some of those who choose to 'resell' these apps do so as part of an "app inclusive service" approach.
That might be a question we ask in 2024 Part 2 of our application for the first time.
App Certified
This is one of the application areas that contribute highly to the "average app score" component of the categorical rankings and the overall "training and certification app score" components.
An old nautical phrase says, "If you're not sailing ahead, you're dead in the water." Training, recognized by "certification for a ProAdvisor, is like sailing ahead.
Too many ProAdvisors previously on the Top 100 list missed the boat, so to speak, for 2023 because their overall training record, as they reported it, showed limited participation in point-eligible training. They also fell below the 'average app score' in most cases.
Four was the average number of app certifications held by ProAdvisors, making the 2023 Top 100 list. The median number of reported app certifications by all 2023 applicants was 1.75.
The four highest-ranked apps in which Top 100 ProAdvisors are "certified" were Gusto Payroll, Bill (aka: Bill.com), QuickBooks Time and Expensify.
This makes it pretty clear. Suppose your "app certifications" are down around the median for all applicants. In that case, you need to consider devoting time to getting formally trained and certified in the apps you use, refer or resell that offer formal certification.
You don't necessarily need to get certified in many apps if you get trained and certified in a few apps that offer intensive training related to their certification.
Part 2 of the App Assessment within the formal certification awards far more points to an individual getting certified in a single app that requires 40-plus hours and a traditional test than if you get certified in an app only after taking two to four hours of training.
App Implementation Partners
One of the boxes available to ProAdvisors in the formal application process asks if you are authorized to implement the app; in other words, you are an "Authorized Implementation Partner" recognized and promoted by the app or software developer.
The requirements for this status normally exceed what's required to earn product certification, even in the same app or software.
Typically, "implementers" perform installation, set-up, integration with QuickBooks (Online or Desktop), data migration, training and maintain an ongoing relationship with their client. Implementations range from a day or so to perhaps several weeks.
In some cases, the app developer may retain the implementation partner on behalf of the client.
The average number of apps/software for which the 2023 Top 100 ProAdvisors reported in the official application form was four. The medium number of implementation credentials reported by all 2023 applicants at 1.79 was slightly higher than for app certifications at 1.75.
The four highest-rated apps for which Top 100 ProAdvisors serve as implementers were Bill (aka: Bill.com), Gusto Payroll, QuickBooks Time and RUN by ADP Payroll.
It's pretty straightforward. The stronger your interactions with apps and software that integrate with QuickBooks Online and Desktop, the more likely you are to find yourself in not only the app-related categories of Appologist, Integration Specialist, Mid-market Specialist and Large Business Specialist, but in one of the core categories, QuickBooks Online and QuickBooks Desktop making up the Top 100 ProAdvisors.
If you get busy bolstering your app interactions, you will find that you are also strengthening your Top 100 application scoring factors.
So best of luck to you in the Top 100 2024 process.
Footnotes and Disclosures:
1 - Amway, founded in 1959, is a privately held company based in Michigan producing nutriceuticals, skincare products and cosmetics as well as other consumer goods. Their products are sold exclusively by independent distributors.
As used herein, QuickBooks®, QuickBooks Online (QBO), QuickBooks Desktop (QBD) and QuickBooks ProAdvisor refer to registered trademarks of Intuit Inc., a publicly-traded corporation headquartered in Mountain View, California.
Other company, product or trade names used herein may refer to specific products which are registered, trademarked or otherwise held by their respective owners; they are referenced for informational and educational purposes only.
This is an editorial feature, not sponsored content. No vendor within this article has paid Insightful Accountant or the author any form of remuneration to be included, or have any product included, within this feature. The article is provided solely for informational and educational purposes.
Neither the publication of this article, nor inclusion of any product, company or trade name herein, represents any form of endorsement by either the author or Insightful Accountant.
Note: Registered Trademark® symbols have been eliminated from the articles within this publication for brevity due to the frequency or abundance with which they would otherwise appear or be repeated. Every attempt is made to credit such trademarked products within our respective article footnotes and disclosures.
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