It’s a common challenge for Australian businesses relying on reseller channels: some partners simply aren’t delivering the expected return. Before jumping to termination, we need to analyse the situation and implement a strategic approach to improvement. Ignoring underperformance erodes overall channel contribution and can negatively impact brand perception. A proactive, marketing-focused strategy is key to turning things around.

The first step is accurate diagnosis. Don’t rely on gut feeling. We need to look at concrete data – sales figures, lead conversion rates, marketing activity participation, and customer feedback related to that partner. Compare their performance against top-performing partners and identify specific areas of weakness. Is it a sales skills gap, a lack of marketing investment on their end, or a misalignment with your target customer?

Here are some practical steps we recommend:

• Joint Business Planning: Work *with* the partner to create a tailored plan. This isn’t about dictating terms; it’s about collaboratively identifying opportunities and setting realistic, measurable goals. Focus on specific marketing initiatives they can implement – co-branded content, local events, or targeted digital campaigns.
• Enablement Investment: Provide resources to help them succeed. This could include sales training focused on your product’s value proposition, marketing collateral customised for their region, or access to qualified leads. Think of it as investing in their capacity to generate revenue for both of you.
• Incentive Alignment: Review your incentive structure. Are the rewards motivating enough? Consider performance-based rebates, spiffs for specific product lines, or co-funded marketing budgets tied to achieving agreed-upon targets.
• Performance Tiers: Introduce a tiered partner program. This recognises and rewards high performers while providing a clear pathway for underperformers to improve and move up the ranks. Transparency around criteria is crucial.

It’s important to set a timeframe for improvement – typically a quarter or two – and regularly monitor progress against the joint business plan. If, despite these efforts, performance remains consistently below expectations, then a difficult conversation about partnership termination may be necessary. However, approaching the situation with a focus on enablement and collaboration first significantly increases the chances of revitalising the relationship and unlocking untapped potential. Don’t delay; a proactive approach to channel management is vital for sustainable growth in 2026 and beyond.

The next step is to schedule a channel performance review. Gather your data, identify your underperforming partners, and begin the diagnostic process. A small investment of time now can yield significant returns.