Many Australian SMEs using a reseller channel struggle with how to best structure those partnerships. Simply having tiers – Gold, Silver, Bronze, for example – isn’t enough. Effective tiering drives partner engagement, increases sales volume, and ultimately, boosts your market share. We’ve seen firsthand how a well-defined structure can transform a passive reseller network into a powerful extension of your sales team.
The key is to move beyond basic benefits and focus on creating genuine value at each level. Here’s how we approach it:
- Performance-Based Progression: Don’t make tiers static. Base progression on measurable criteria like annual sales revenue, number of new customers acquired, or successful completion of product training. This incentivises partners to actively grow with you.
- Differentiated Marketing Development Funds (MDF): MDF is crucial, but don’t distribute it equally. Higher tiers should receive a significantly larger allocation, reflecting their greater contribution and potential. Consider tying MDF usage to specific marketing activities that align with your overall strategy.
- Exclusive Access & Early Introductions: Reward top-tier partners with early access to new products, beta programs, and exclusive market intelligence. This fosters a sense of partnership and gives them a competitive edge. It also provides valuable feedback before wider releases.
- Dedicated Support & Account Management: As partners move up the tiers, their needs become more complex. Provide dedicated account managers and priority support to ensure they receive the attention they deserve. This builds loyalty and strengthens the relationship.
It’s also important to regularly analyse the performance of each tier. Are partners achieving the targets required for progression? Are the benefits at each level still relevant and motivating? We recommend a quarterly review process to identify areas for improvement and ensure your tier structure remains effective. Don’t be afraid to adjust criteria or benefits based on market changes or partner feedback.
Ultimately, a successful reseller tiering strategy isn’t about creating arbitrary levels of prestige. It’s about strategically investing in your partners to drive mutual growth. By focusing on performance, value, and ongoing optimisation, you can build a reseller channel that delivers significant returns for your business.
To get started, we suggest mapping out your ideal partner profile and defining the key behaviours you want to encourage. This will form the foundation for a tier structure that truly aligns with your business objectives.
