Channel Partner Strategy for Motivating Resellers

Vendors or Parent companies rely on channel partners to get the bulk of their products sold in the open market. What the vendors should realize is that these partners are independent business entities that they cannot bend to their will. Resellers are not employees and should never be treated as one. They are partners of equal status with separate needs and agendas.

Part of every vendor's channel partner strategy is coming up with incentives and loyalty programs for partners. Since all private companies' main objective is growth and development, they naturally need to be profitable in order to succeed. Commissions through sales of products are standard, of course, but vendors also need to further motivate their partners to keep them loyal. As independent businesses and firms, resellers can cater to the competition if they would benefit from such a partnership even though they also sell your product.

Incentive program
In developing and establishing an incentive program, the vendor has to keep in mind the main objectives: to encourage channel partners to sell more of their products; encourage resellers to develop rapport with the vendor's customers; and motivate their sales team by allowing a level of independence and freedom to choose what products to sell. A symbiotic relationship is necessary in order to have all parties satisfied. The reseller has to be profitable, the sales team has to be motivated and the vendor has to have increased revenues.

The channel partner strategy, incentive programs should not only take into account the rewards for resellers. It should also result in resellers streamlining their product lines by reducing the vendors they represent. A VAR or Value Added Reseller should specialize in a vertical market to increase their expertise and credibility with customers and clients.

Other forms of rewards
Rewards or incentives program differ from each vendor. Parent companies who take advantage of technology uses partner portals to automate the rewards so partner channels can see real time their progress and equivalent rewards. Sales performance for individuals in the sales team can often increase with simple bonuses. Motivating your sales teams can be done with simple activities like a team building or free dinners. Gift vouchers for goods or services are often the most common forms of bonus incentives given by companies for a job well-done. Even if the rewards maybe small, what is most important is the validation and the feeling of recognition for the work and effort. Monetary vouchers and credit or debit accounts are even more favorable because the sales agent can chose their own reward. In some cases where channel partners are in another country, culture and social norms may be different from the western cultures so incentives should suit the right individuals and take into account what is acceptable and proper.

No matter what the bonuses are, the vendors should not forget that the sales people who talk and meet with customer's everyday are paid by the resellers or channel partners. Their goals and objectives should always be aligned with the parent company.