What pricing models work best for channel partnerships?

ROI insights

Getting pricing right with your reseller channel is absolutely critical. It’s not just about covering your costs; it’s about motivating partners, driving sales volume, and ultimately, growing your market share. We’ve seen many Australian SMEs stumble here, so let’s look at the models that genuinely deliver results.

There’s no ‘one size fits all’, but understanding the core approaches will help you choose what’s best. The key is aligning your pricing with your channel strategy – are you focused on rapid expansion, premium positioning, or something in between?

  • Resale Pricing: This is the simplest. You set a wholesale price, and your resellers add their margin and sell to the end customer. It’s easy to administer, but requires careful margin control to ensure profitability for everyone. We often recommend tiered resale pricing based on partner performance – rewarding those who move more volume.
  • Margin Sharing: Instead of a fixed wholesale price, you share a percentage of the final sale price with your reseller. This can be very attractive, especially for higher-value products or services, as the reseller’s earnings directly correlate with their sales success.
  • Subscription/Licensing Models: If you offer a subscription service, consider a tiered reseller commission structure. For example, a percentage of monthly recurring revenue (MRR) or annual recurring revenue (ARR). This incentivises partners to focus on customer retention, not just initial sales.
  • Performance-Based Rebates: Layered on top of another model, rebates reward partners for hitting specific sales targets or acquiring new customers. This is a powerful tool for driving focused activity, particularly around key product launches or during quieter periods.

Don’t underestimate the importance of transparency. Clearly communicate your pricing model and margins to your partners. Provide them with the tools and resources they need to accurately quote and sell your products. Regular reviews of your pricing are also essential – market conditions change, and your channel strategy may evolve. We’re already seeing businesses preparing for adjustments in early 2026 to account for anticipated economic shifts.

To get the most out of your reseller channel, start by mapping out your ideal partner profile and then designing a pricing model that directly incentivises the behaviours you want to see. A well-structured pricing strategy isn’t just about profit; it’s about building strong, mutually beneficial relationships that fuel sustainable growth.

The bottom line

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