In this article, we will discuss what channel partner incentive programs and what the different types of them are. Also, we will discuss the benefits of the partner incentive program and best practices for this program.
What is a channel partner incentive program?
A channel partner is a thing that or program that partner motivates wither reseller or distributor. This helps them to engage in a certain behaviour with your business. You can offer them different kinds of rewards and help them grow their business also. This will create trust and the good thing about your business in the mind of the partner. In this way, the partner will sell more of your products in the market to help you profit. Channel partners are available in different shapes and sizes in the market. The channel partners don’t need to be there in the industry. They can be affiliates, distributors, resellers, independent retailers, and value-added services. You can also make it easy to find them by hiring a channel partner software for the business. This will help you to find the people in the market who will become a channel partner for your products. Anyone who sells you rand in the market directly can either be a partner or no partner. The best way to make sure they are selling your product is through a channel partner program. This will send people over to check if the products of the business are being sold by the partner or not. This means that a good partner will always sell the partnered products of the business. This is done so that the partner wants to be in the incentive program, which is like B2B loyalty. The main reason why you need to keep a check on partners is to see if they are committing fraud or not.
What are the different types of channel partner incentives?
There are many different kinds of incentive programs that you can find in the market. There are also several benefits that both parties receive while using this program. Here is the list of different kinds of partner incentive programs in the market.
Rebates are known as the volume-driven partnership that encourages to sell more. This means that that rebate will get a percentage back from the sales they are committing. There are mainly four types of rebates out there in the market. Rebates are the sales which are done in huge volume and that too on black Friday or huge sales etc.
- Discounts on wholesale products
This means that the business will sell the product to the channel partner at the wholesale product. There is a wide range of customer types that you will deal with in the market. Most of the partner companies need to check their purchasing frequency and volumes. The best way to keep track is to make a list of pricing and terms for each of the customers. This list will make sure you are giving products at the right price to the partners.
- Sales Performance Incentive Funds (SPIFs)
SPIFs are designed in such a way that it inspires the sales team of the channel partner. This will help the sales team to promote your brand over others with the promise of rewards. SPIFs are a good way to encourage the channel partner to strive for higher performance etc. This can be done during the odd season or any other season in any country.
- Market Development Funds (MDF)
MDFs are the resource that will help your channel partner with sales and other marketing efforts. These incentives can be in the form of funds, or they can also be knowledge-based. Marketers use these MDFs for a wide range of initiatives to create brand awareness. Some of the MDFs are to fund webinars, radio spots, launch marketing events, and also a booth for a trade show.
- Funds are great types of channel partner incentives
Cooperative funding is the way for companies to help channel partners achieve their goals. These funds are earned over a long period rewarding partners for loyalty and purchases. These are the funds that are given as credit, but a lot of manufacturers think this does not have any link.
- Deal registration incentives
These rewards partners with cash for identifying the potential customer and referring them. If those leads buy your products, then the partner will get the benefit of it. The channel partners can register online. This means you can check what they are doing. You can send them money either online or don’t send money according to their performance.
What are the best channel partner incentive practices?
To ensure that your partner is working for the betterment of your business. Given below are some of the best practices that you can do to encourage channel partner incentive.
- Choose the behaviour you will reward
This means that to ensure the growth of your company is its products being sold in the market. You will have to choose which behaviour will reward the partner, and this will motivate them.
- Reward with cash or cashback
Once the behaviour is selected, you will have to choose in which way you want to reward your partner.
- Make sure the channel partner incentive program is understandable
You have to make sure that it is easy to understand for the partner so they can work accordingly. You can also do the CRM system implementation for better results in the market
- Ensure rewards are attainable
Make sure that the rewards are getting attained by the partners to keep them motivated. This does not mean that you should keep easy terms for the partner to take profit.
- Reward partner with an incentive in an accurate manner
This means that you should check on each partner and see how they are doing in the market. Then accordingly you should reward them and make them pay from time to time.
- Consider automating the program
This means you should appoint a channel partner software to keep track of everything.