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 – revenue generated, new customer acquisition, marketing qualified leads delivered, or even 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. Consider tying MDF to specific co-marketing activities to ensure maximum return.
- 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 release.
- Dedicated Support & Training: Higher tiers deserve a higher level of support. This could include a dedicated account manager, priority technical support, and tailored training programs. Investing in their success is investing in your own.
It’s also important to regularly analyse tier performance. Are partners actually progressing? Are the benefits at each tier motivating the desired behaviours? We recommend a quarterly review process to identify areas for improvement and ensure your tier structure remains aligned with your overall growth objectives. Don’t be afraid to adjust criteria or benefits based on what the data tells you.
Ultimately, a successful reseller tiering strategy isn’t about creating exclusivity for exclusivity’s sake. It’s about strategically rewarding and enabling your partners to drive more sales and expand your reach across the Australian market. Your next step should be to map out your current reseller base and assess their performance against potential tier criteria.
