Six Common Programs Used For Channel Partner Incentives
Posted on: 17 January 2020
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Channel partner incentive solutions are one of the best ways to get channel partners to sell more of your product. There are also numerous approaches you can take that may draw greater sales and increase revenue.
1. Rebates
One of the most common types of channel partner incentives is a rebate. With a rebate, partners receive a percentage of their sales back. This is used to move products at a specific moment and is used by almost all companies.
2. Market Development Funds
When marketing to a new country, one of the challenges is that prospective customers will not be familiar with your products. One solution to this is to offer market development funds to your partners. These can be used to expand your sales reach.
3. Deal Registration
If you are not experiencing the market momentum that you had hoped for, one option is to use deal registration. This is a program that allows you to identify an opportunity and then pays a partner for each conversion. For example, if you are selling gym memberships and you expect there to suddenly be an increase in the number of potential customers, such as right before summer, you may offer incentives for partners to sell more memberships during this period.
4. Learning Management Solutions
When you introduce a new product, you might find that some of your partners do not embrace the product. This can be rectified with a Learning Management solution that allows your partner to complete training in your product and receive a financial incentive.
5. Staffing Rewards
If your product requires that a partner hire a new employee specialized in a specific task, you may offer to pay for this employee's salary. For instance, if the partner must sell the product and offer repair services if the product is defective or must be recalled, you may pay for this employee's salary.
6. Solution Development
You may not be sure if your product will be successful in a new market. If you aren't sure, one option is to pay for demos that will allow sellers to promote your product. For example, you may be selling a food product and may choose to give free samples away while paying for them.
Regardless of the method you use, you will want to create an incentive that resonates with your partners. For example, if you do offer a rebate, the rebate needs to be substantial enough to be considered worth the extra effort.