Channel
Incentivization

Why Channel Incentivization?

Technological progress has shifted power dynamics in business, giving strategic partners more alternatives over large technology suppliers.

channel incentivization

3C Ecosystem

Maximize partner program value by emphasizing competency and key moments.Orchestrate a 3C ecosystem to attract partners.

3c ecosystem
3c ecosystem
3c ecosystem

9 channel incentive programs

List of 9 channel incentive programs for a strategic partner strategy.

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1. Value-added reseller (VAR)

VARs boost sales by creating turnkey solutions; incentivize reps for increased effort. Research suggests such programs can elevate total sales by 6% to 9.

Benefits:

Increase
Market Reach

Handle complex
IT projects

Challenges:

Trust issues

The intermediary role of VAR

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2. Sales performance incentive funds (SPIFs)

SPIFs require careful prize selection for a successful strategy; an exciting offer keeps participants motivated, contributing to improved sales performance.

Benefits:

Helps target key individuals

Increases sales momentum

Challenges:

Response to unforeseen circumstances

Unclear
Incentives

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3. Market development funds (MDFs)

Marketers utilize MDFs in channel partner teams for initiatives, aiming to boost local brand recognition—examples include radio ads, webinars, trade show presence, and marketing events.

Benefits:

Utilize partner market insight & influence

Generate a measurable return

Challenges:

"Use it or lose it" deadlines

Stringent terms & conditions

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4. Cooperative funding (CO-OP funding)

CO-OP funds, traditionally account credits, may lack partner satisfaction. A recent approach involves integrating them into rewards and loyalty programs.

Benefits:

More money,
more ads

Opens doors to new ways of marketing

Challenges:

Small business,
small budget

Put a strain on your marketing/sales team

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5. Deal registration incentives

Deals recorded online undergo vendor scrutiny against criteria. Approved deals have a limited timeframe for partners to close, often with vendor support for deal closure.

Benefits:

Enhanced
efficiency

Increased partner satisfaction

Challenges:

Transaction complexity

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6. Enablement and training incentives

Channel partners, not employed by the brands they sell, rely on parent companies for training due to diverse product offerings. Familiarity ensures effective representation, vital for partners handling multiple brands.

Benefits:

Lower
support costs

New revenue
stream

Challenges:

Exclusion

Cultural issues

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7. Loyalty incentives and partner retention

Beyond sales, prioritize sustaining relationships by incentivizing top-performing partners to foster loyalty. Shift incentives from growth to retention, acknowledging the value of committed talents to prevent potential poaching by competitors.

Benefits:

Increases partner retention

Attract
new partners

Challenges:

Market saturation

No control over partner leaving

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8. Rebates incentives

Beyond sales, prioritize sustaining relationships by incentivizing top-performing partners to foster loyalty. Shift incentives from growth to retention, acknowledging the value of committed talents to prevent potential poaching by competitors.

Benefits:

Sales growth

Building a
consumer base

Challenges:

Limited internal implementation bandwidth.

Complexity

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9. Staffing or embedded headcount

Staffing/Embedded Headcount incentives are a type of enablement and training incentives. A full-time employee is embedded in a partner organization to teach partners and promote the product in the partners businesses.

Benefits:

Improved performance

Brand growth

Challenges:

Cultural
differences

Channel Incentives
that Boost Growth

channel incentivization
incentive type

Traditional Incentive

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Complexity of Offering

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Multiple Decision Makers

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Longer Buying Process

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Multi touch Point Usage

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Unpredictability of Demand

incentive type

New Sales Incentive

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Role-Specific Incentives

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Split Incentives

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Presales Incentives

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Omnichannel Incentives

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Analytics-Driven Incentives

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Brand Partners to our Clients

We make sure that you can offer the best of
benefits to connect deeply with your
employees and clients!

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