Licensecart No Longer SolusVM Authorized Reseller

[Jonathan]

Wonder what happened here...

From the 1st of June, 2017, all SolusVM services will cease to be provisioned as a result of internal cash flow issues. This was not an easy decision for us with all other options being thoroughly exhausted.

Yearly licenses will be refunded on a pro rata basis from our service end date stated above.

We hope to reintroduce SolusVM in the future once our issues have been permanently resolved. Customers who choose to return to us will be offered discounts for their continued custom.

Please note that other services will not be affected by this and we hope that you can maintain confidence in us. We apologies for any inconvenience this may have caused.

Screenshotted in case it disappears. OP at https://twitter.com/Licensecart/status/867031199608438784

 

[Lee]

Internal cash flow issues, does Solus require an up front or something and not enough buying licences?

 

[Jonathan]

Internal cash flow issues, does Solus require an up front or something and not enough buying licences?

That's what I'm wondering about. I know for regular licenses you just pay for the license each month, and it is up front.

I dunno how it works for resellers, maybe it's one that requires a lump-sum style agreement?

 

[Jonathan]

From a source @ Solus:

Pay licenses at the beginning of each month basically like cPanel. Just takes a tally of total licenses active at the end of the month and done.

 

[Lee]

Seems odd then, you will always get the ones that don't pay and you end up with the cost for the month like it or not. But then you make sure they pay in advance and cancel before, only way with such slight margins.

 

[zafouhar]

From a source @ Solus:

If they work like cPanel then they may have a minimum amount and if Licensecart doesn't have enough licenses to meet the minimum amount then it makes no sense to continue offering Solusvm

 

[raindog308]

Could be one of those "we make pennies per license, out of which we pay staff and take profit, and...oh crap it's the 1st of the month and we need to front another month's worth of Solus".

It's also easy to get caught out on things like a large order cancels, disputes, etc. On paper, you may never need to pay your supplier before getting the customer's money, but it never works like that. tl;dr probably undercapitalized and running on thin margins.

 

[maounique]

"We apologies" or not, there is one thing I do not understand.
Why are yearly licenses to be refunded? As I see it, solus authorized licensecart to sell yearly licenses, they did, the agreement is now between solus and the end user, the middle man has nothing to do with it, they do not provide after market services. What if the store you bought your 1 year antivirus license gets under and your license is invalid and has to be refunded in part? Something is wrong some place, or their agreement with solus is crazy.

 

[Jonathan]

I bet their one-year was just a monthly that got renewed, ie they could pay for up front. Perhaps with thin margins getting some people on-board with yearly made the business model work...for a while? Then perhaps it caught up and new ordering yearly's couldn't subsidize the low margins anymore.

 

[QuadraNet_Adam]

Probably didn't have enough volume/customers.

 

[Tyler]

Darn. It was nice because they were cheaper than SolusVM's pricing. Had I remembered them, I would have moved my licenses over to them (not saying it would have saved the company, but it probably would have helped had just a few others done it).

I always liked Licensecart, too, and they have always been very pleasant.

 

[Jonathan]

Darn. It was nice because they were cheaper than SolusVM's pricing. Had I remembered them, I would have moved my licenses over to them (not saying it would have saved the company, but it probably would have helped had just a few others done it).

I always liked Licensecart, too, and they have always been very pleasant.

Licensepal still sells it for a bit cheaper than direct.

 

[maounique]

I bet their one-year was just a monthly that got renewed

I don't think so, LC is not looking like a hit and run job and such a behaviour can't really look like anything else.
Maybe Solus used some obscure clause to invalidate all licenses for some reason, being under a new management, I wouldn't think this is that far fetched as it sounds, maybe they are squeezing all the available turnips for the last drop of blood...

 

[Jonathan]

I don't think so, LC is not looking like a hit and run job and such a behaviour can't really look like anything else.
Maybe Solus used some obscure clause to invalidate all licenses for some reason, being under a new management, I wouldn't think this is that far fetched as it sounds, maybe they are squeezing all the available turnips for the last drop of blood...

Well it probably doesn't help that @Licensecart comes off as very stand-offish frequently attacking members in one of his vendor's forums for asking simple questions. That sort of behavior doesn't exactly attract new customers...

 

[maounique]

Well it probably doesn't help that @Licensecart comes off as very stand-offish frequently attacking

So we have a standoff a la Burst vs. VD, none particularly pleasant or loved, but, if that is the case, my bet is that LC is not the bad"(est)" guy here.

 

[Jonathan]

So we have a standoff a la Burst vs. VD, none particularly pleasant or loved, but, if that is the case, my bet is that LC is not the bad"(est)" guy here.

Oh man I'd forgotten all about that. Oh the good 'ol days...

 

[Lee]

From his Twitter feed. "We did state that this is an internal cash flow issue with SolusVM."

Sounds like BS to me, trying to blame Solusvm having cash flow issues. If that was the case it would be affecting more than just him.

He has seen this thread so could explain.

 

[igobyterry]

I cannot go into specifics regarding the termination, however it was a last resort and not something we wanted to do. Further, SolusVM is not having any kind of cashflow issue (nor would it be logical for us to terminate a reseller if that were the case)

We continue to have a good relationship with our other 3 distributors who are in good standing, at http://solusvm.com/distributors-2/

As well, early next week we will have a page on our website for additional users to apply to become a distributor.

 

[Lee]

Thanks @igobyterry - knew there was more to it.

 

[Licensecart]

From his Twitter feed. "We did state that this is an internal cash flow issue with SolusVM."

Sounds like BS to me, trying to blame Solusvm having cash flow issues. If that was the case it would be affecting more than just him.

He has seen this thread so could explain.

I've not been on here for a while and Callum meant with the solusvm product customers. Some how I've created a black hole, income coming in for every license didn't add up to our outgoings and I believe it's due to my kitty with InterWorx licenses and the InterWorx sales dropping so fast causing us to pay more for not what we were selling.

That and something else I'm not sure on I assume it's licenses which were not paid and we paid for them (due to not having modules made). Nothing to do with SolusVM it's my fault and I'm working on getting back on track with Callum and Matthews help.