Channel partners are increasingly becoming more difficult to incentivize. With competing brands fighting their way into your channel’s portfolio, it becomes necessary to develop reward programs that leave a major impression. The 10 steps featured in this how-to guide on partner reward programs provide valuable insight, incentive structure, and tips on how to:

•   Motivate a channel
•   Increase sales
•   Drive incremental revenue

Of course, we are ready to assist if you’re looking for channel incentive program experts! Feel free to contact us if you have any questions, or would like us to help bring bright ideas to your next program.

QUOTA SHARE

Non-exclusive dealers, partners, or agents might sell ten to twenty different brands. Understanding your brand’s share of a typical rep’s quota is incredibly important. If you have a small “quota share,” then you likely have a small mind share and small heart share. Your promotional offers will need to be richer and your communications great to capture disengaged rep’s attention.

•  Re-examine your participants base

How many participants? Are they likely to participate?

•  Reward selection/value based on what it takes to motivate participants

How much is enough? The lower your quota share, the higher the reward will have to be to motivate sales.

•  Ask why sales of a certain product aren’t high enough

Why are desired performance levels not being achieved? Perhaps sales reps or channel partners don’t understand the product.

channel partner quota share

RAMP UP TIME

We regularly see disappointment in the ramp-up time of new channel reward
programs. The sponsors always expect it to be much faster (because they are
familiar with the reward program, it’s important to be the sponsor, and mistakenly they think the channel will grasp it quickly). Due to the disconnected nature of channels and lower “quota share” (described earlier), new channel reward programs ramp up slowly.

There’s a quick surge initially from a small group of reps who are actively engaged with the sponsor (or just love spiffs!), then a slower but steady increase in participation for months 3-12, and finally, the participation line flattens a bit until the reward program is fully ramped at 18-24 months.

SUGGESTIONS

SIMPLIFY

Remember to keep it simple. Your audience is much less familiar with your incentive program than you are. Too many programs are too complex, so sales reps ignore them.

AS A REMINDER

The two most important perspectives to keep in mind as you develop and evaluate any incentive program are:

PARTICIPANTS

If you were a participant in the program, would you put forth the extra effort required to take advantage of the earning opportunity?

SPONSORS

Will the executive sponsor of the incentive feel the program’s investment generated a satisfactory return?

Your channel partners are ready to be motivated!

Download the full eBook to see all 10 steps to creating a channel reward program that demands attention.
After you’ve had a chance to brush up, see how Brightspot can help you with your next incentive program!