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Channel Incentives are Crippled Without Individual Reseller Plans

Channel Incentive

Reseller Needs To Understand

Your channel resellers are definitely motivated by the additional financial incentives you offer for hitting certain targets, supporting new initiatives, and fulfilling required tasks associated with these rewards. But, if the reseller lacks a well-defined plan, incentives by themselves may be throwing good money after bad. Resellers need to understand their strengths in the market and build a specific plan to go after their target with the right message, product, price and offering. Without this, incentives simply serve to either sell more unprofitable services or fail to generate new revenues.

A well-defined incentive program starts with requiring resellers to define their target customer goals, revenue and product targets, expense and staffing budgets. These are followed by market analysis that helps determine their pricing and margin strategy for growing profitably. Once this is established, then incentives can plan a role to help resellers penetrate the markets they are pursuing. If they don’t have a thoughtful market, competitive, positioning, pricing, margin and profitability analysis, they are much less likely to be successful with incentive programs tied to an incomplete strategy. First and foremost, the reseller’s target customers are going to purchase if their needs are being met by the solution. The incentive is used to help get interested customers to buy now, not as a substitute for a sub-standard strategy.

Provide your reseller account managers with planning support tools they can use to help your resellers more effectively organize their business. Then, provide the targeted incentives that help resellers to more effectively execute their customer-relevant plans.

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