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Individual sellers, driven by quarterly targets, may try to reduce partner margins on deals where they "did all the work." A well-designed partner program must enforce fair compensation regardless of a single deal's dynamics. This ensures partners can reinvest in future growth, prioritizing the long-term health of the ecosystem.
A genuine partnership is a long-term investment where a vendor empowers the partner to build and sell their own value-added services around the core product. This creates a deeper, more sustainable, and mutually beneficial relationship beyond simple reselling.
Shift partner tiering away from being solely based on sales volume. Instead, use a partner's investment in training and certification as the main parameter. This approach rewards commitment and capability, which are leading indicators of future success. It allows smaller, highly-invested partners to be recognized and supported appropriately.
Lacking a sales quota is a strategic advantage for partner marketers. It provides the freedom to step back from short-term targets and focus on the partnership's long-term 'North Star.' This allows them to advocate for partners more authentically, building deeper trust than a purely transactional, sales-driven relationship.
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.
To prove its "partner-first" commitment, Akamai financially incentivizes its direct sales force to work with partners. Sales teams earn a higher commission on deals closed through a partner, even if Akamai initially sourced the opportunity, ensuring internal alignment and prioritizing the channel.
Traditional channel management focuses on high-level account mapping. A more effective approach is to deeply understand the individual partner sales rep's compensation plan. By tailoring your pitch to help them achieve their specific goals, like hitting a new logo quota, you create powerful, personal motivation that drives real engagement and results.
A successful channel program rests on three equally important pillars. Partners must be able to make money, the product must be trustworthy to protect their reputation, and the vendor's team must be accessible and supportive. Weakness in one area cannot be overcome by strength in the others.
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.
Beyond not competing with partners, genuine trust is built by preventing "extreme favoritism to the bigger partner." Partners watch to see if you provide a level playing field for everyone, regardless of size. Trust is also solidified by how you act when things go wrong; a vendor that "shows up" during a crisis builds loyalty.
Instead of letting a partner program evolve organically, start with a clear vision of the ideal channel based on board-level metrics. Actively build towards that future state, which includes strategically stopping activities that only service a legacy model.