Many Australian SMEs rely on reseller channels to expand their reach, but simply recruiting partners isn’t enough. To truly unlock growth, we need to ensure partner incentives directly support your core business goals. A poorly designed incentive scheme can lead to partners pushing the wrong products, discounting heavily, or neglecting customer service – all undermining your brand and profitability.
The key is moving beyond simple margin increases. While attractive margins are essential, they’re easily replicated by competitors. We need to think about incentives that drive specific behaviours that benefit *your* business. Here’s how we approach it:
- Tiered Rewards Based on Value, Not Just Volume: Instead of rewarding partners solely on sales revenue, consider a tiered system that rewards activities like lead generation, solution selling (bundling your product with complementary services), or achieving high customer satisfaction scores. This encourages partners to focus on higher-value interactions.
- Market Development Funds (MDF) with Clear ROI Expectations: MDF is a powerful tool, but it needs to be strategically allocated. Don’t just hand over funds; require partners to submit detailed marketing plans with measurable objectives. We’ve seen success with MDF tied to specific campaigns targeting new customer segments.
- Performance-Based SPIFFs (Sales Performance Incentive Funds): Short-term SPIFFs can quickly motivate partners to focus on specific products or promotions. For example, a bonus for selling a certain number of units of a new product launch. Ensure these SPIFFs align with your overall product strategy and don’t cannibalise existing sales.
- Incentivise Training and Certification: Partners who deeply understand your product are more effective at selling it. Offer incentives – like increased margins or exclusive access to leads – for completing training and achieving certifications. This builds partner capability and improves the customer experience.
Regularly analyse the performance of your incentive programs. Are they driving the desired behaviours? Are partners actively participating? Don’t be afraid to adjust the scheme based on data and feedback. A dynamic approach, constantly refining incentives based on market conditions and your business objectives, is crucial for sustained success.
Ultimately, aligning partner incentives with business goals isn’t about simply offering more money. It’s about creating a mutually beneficial relationship where partners are motivated to invest in your brand and drive profitable growth. Your next step should be a comprehensive review of your current partner program, mapping incentives directly to your key business objectives for the coming quarter.
