Channel partner incentive programs build brand awareness, channel loyalty, and increase B2B sales, and are designed to help you:

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Increase overall sales volume and produce higher ROI.
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Reduce old inventory by motivating channel partners to clear it out for you.
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Accelerate adoption of new products by incentivizing purchases.
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Promote product bundling and cross-sales.

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Give you quality insight into your channel, with more complete customer data.
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Channel incentives improve partner marketing throughout your channel.

What types of channel incentive programs are there?

Channel Sales Incentives
Warranty Registrations & Bundling
Channel SPIFFs
Enablement & Training Incentives
Channel Rebates
Channel Partner Retention
Referral Incentives
VAR Incentives

What steps are involved in launching a channel partner incentive program?

  • Start From The Beginning

    Determine objectives for targeted segments – such as increased sales from dealer-distributor reps, or maybe improving product knowledge among contractors.

  • Build Your Budget

    Allocate the budget needed to successfully influence your channel partners. It typically costs $500 in reward spend per channel partner per year to meaningfully affect their behavior.

  • Select Rewards

    Based on your goals, determine the timeline of your promotions, and learn what interests your audience.

  • Measure Your Performance

    Set KPIs (key performance indicators) that will determine the success of your channel incentives program.

  • Go to market

    Build awareness and engage your channel partners, making sure they are actually redeeming their points.

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Channel Incentive Program FAQs

What's the definition of channel sales?

Channel sales are indirect sales that take place through a distribution channel and are facilitated by your channel partners – intermediary agents and businesses – who influence the purchasing decisions of your end users.

Over 76% of industry marketers use some type of channel partner to sell their product to end users.

What are channel incentives?

Channel incentives are rewards, recognition, discounts, SPIFFs, or rebates that are used to motivate channel partners to prioritize your brand. Channel incentives can be used to motivate channel partners to recommend your products to end users, include more of your product in their product mix, provide referrals, or to include contact marketing data for your end users.

What is the difference between direct sales and channel sales?

Direct sales use your company’s sales reps to sell to its end users. Channel sales rely on channel partners to sell your products to the end users.

How can I increase my channel sales?

A channel sales incentive program is a highly effective way to increase the profitability of your sales channel by producing increased channel sales, improving channel marketing, and producing a higher degree of loyalty and collaboration in your channel partners.

What is channel strategy?

Channel strategies are plans you use to improve your channel sales. These may include boosting brand awareness, increasing sales, providing sales training and enablement, or gathering better marketing data and insight into your channel. Channel incentives offer solutions for each of thes objectives.

What are some best practices for channel incentive programs?
  • Define specific, measurable goals for your channel incentive program. Channel incentive program objectives could be increasing revenue from your distributor sales reps, inspiring dealers to include better data on warranty registration forms, or any number of actions.
  • Select KPIs that help you track progress towards your goal. Make sure these align with the behaviors you’re incentivizing your channel partners to perform.
  • Identify the target audience for your channel incentives. This is your channel partners whose behaviors you want to alter most.
  • Segment your audience so you can personalize channel incentives and marketing, and then analyze data more effectively. Channel partners can be organized by region, territory, dealer, or their level of engagement.
  • Market your program all throughout onboarding and the entirety of your channel incentive program.
  • Consistently track and analyze data. This will help you notice trends you can capitalize on, and identify potential problem areas quickly.
  • If your channel incentive program is performing well and producing ROI, you may consider increasing your budget and looking for ways you can expand your program.

See what our clients say about our channel partner incentive programs.

Learn from our incentive experts by downloading one of our free ebooks!


The BthruB Incentive Program Playbook
A step-by-step outline for structuring your incentive program for sustainable ROI. Download your copy to learn more about the latest in incentive strategy!



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Channel Incentive Playbook
Check out strategies, data, and insights drawn from channel incentives plan examples. Gain access to studies of our most successful channel incentive programs and learn what made them excel!


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B2B Sales Strategy Ebook
Deep dive into the sales and marketing trends of today’s B2B channel. Learn how incentive technology is the next step in achieving differentiation in the evolving channel landscape.


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