To scale its reseller program, SkillVari uses a variable commission structure. Resellers who require significant handholding on deals earn a low commission (3-4%). Those who operate independently, managing the entire sales cycle, earn a much higher rate (up to 20%). This incentivizes partner self-sufficiency.
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For its $5k average deal size, SkillVari found a direct US sales model unviable, as travel costs could erase profits. Instead, they built a network of 10 regional resellers, incentivized with commissions up to 20%, to provide local, hands-on demos and support.
A 'one-size-fits-all' commission fails to motivate top performers. Advanced affiliate programs use dynamic compensation, tailoring CPA rates by affiliate quality, customer type (new vs. returning), and specific SKUs to create the most compelling incentives.
For its high-touch VR training product, direct sales were uneconomical due to high travel costs for a relatively low ACV. SkillVari built a network of 10 regional resellers, enabling local, in-person demos that are crucial for closing deals and scaling nationally without an expensive sales team.
The ROI of partner enablement is critical but notoriously difficult to quantify. To create a tangible link to revenue, connect enablement activities like training sessions to specific, trackable outcomes like SPIFs or other direct incentives that drive a desired action and can be measured.
The most effective partner marketing strategy isn't about getting partners to resell your product. Zendesk's Amy Avalos argues it's about enabling them to sell their own unique value, with your technology as the engine. This positions them as trusted advisors and strengthens their brand.
The financial incentive for resellers to transition to a Managed Service Provider (MSP) model is stark. Top MSPs operate at 50-60% margins, a completely different league from the 8-20% margins typical for project-based resellers, which often yield only 1-3% EBITDA.
Traditional revenue tiers (Gold, Silver, Bronze) are vendor-centric. A more effective approach is to classify partners by their business model. For example, an MSSP needs predictable upfront costs to build a service, while a value-added reseller may prefer volume-based rebates. Tailoring your program to their model, not just their size, is key.
Vendors and TSDs get lost in partner labels. The critical distinction is the partner's business model: Do they want a residual commission, to resell on their own paper, or a one-time payment? Offering this flexibility is key to recruiting and enabling modern partners.
Don't underestimate small revenue streams like affiliate commissions. Because they are often pure profit, they go directly to the bottom line and can have a disproportionately large, life-changing impact on a small business owner's personal income.
Instead of running their own ads, an influencer can propose a deal to create ad content for a partner brand. The brand funds the ad spend, and the influencer accepts a reduced commission (e.g., 20% instead of 40%) on sales. This generates risk-free revenue and free brand exposure for the influencer.
