Incentives are the secret sauce of any partner program, but let’s face it – most miss the mark. Either they don’t know what gets partners excited, or they stumble on executing their strategies.
Now, how do you nail partner incentives?
We’ve hosted a public webinar with Karlyn Bentley (Ansira) and Kathleen Meza (Dell) to help you figure out what works, what doesn’t, and how to implement them.
Here’s a quick article for our webinar’s biggest takeaways:
The Current State of Partner Incentives
Gone are the days when simple commissions were enough to motivate partners.
According to the State of Partnership Leaders Report, a whopping 72% of companies offer commissions as their primary incentive.
But here’s the thing: 78% of partners only see these commissions as nice-to-have or worse.
Only 27% of those commissions even make it to the reps doing the referring.
The report also highlights that 91% of partners forecast more than 10% sourced revenue in 2024, with referrals being the highest priority. Co-marketing efforts are also on the rise, though they can be tricky to scale and often clash with other marketing priorities.
All these insights reveal a gap between what companies offer and what partners find valuable, so how do you bridge that? Here are some of our recommendations:
1. Determine Desired Behaviors
This might sound straightforward, but it’s where many programs go wrong. You need to be crystal clear about the actions that will drive the most value for both your company and your partners.
Consider these points when determining desired behaviors:
- What specific sales targets do you want partners to hit?
- How often should partners engage with your marketing campaigns?
- Are there specific training programs you want partners to complete?
- How should partners be involved in gathering customer feedback?
Defining these behaviors creates a focused foundation for your incentive program. Clear, actionable behaviors help set the stage for meaningful and motivating incentives.
2. Identify Key Individuals
Now, you have to identify which specific roles or people will be driving these behaviors. This could be sales reps, marketing managers, or customer service teams.
Understanding who these individuals are allows you to tailor incentives that resonate with them directly.
For example, sales reps might be motivated by financial bonuses, while marketing managers might prefer co-branded marketing opportunities.
3. Understand Motivations
As you should have noticed, different roles have different motivators and a one-size-fits-all approach rarely works. You need to dig deeper into what makes your partners tick.
Ask them what types of rewards they value most. This could be one or a combination of the following:
- Financial Rewards: Bonuses, commissions, or profit-sharing.
- Recognition: Awards, public acknowledgments, or exclusive status.
- Resources: Access to premium tools, training programs, or co-marketing funds.
- Growth Opportunities: Professional development, certifications, or networking events.
Consider conducting surveys or holding focus groups to gather insights directly from your partners.
4. Assess Scalability and Delivery
It’s one thing to design compelling incentives, but ensuring they can be effectively rolled out across all partners is crucial. Without scalability, even the best-designed incentives can fall flat.
Start by evaluating your resources and capabilities. Can your team handle the administration of these incentives at scale? Are there tech tools that can streamline the process?
You should also consider delivery. Partners should be able to access the benefits from incentives without jumping through hoops. Simplify the process to enhance adoption and satisfaction.
Access the World’s Premier Network for Partnerships
The key to nailing partner incentives is aligning your goals with your partners’ motivations. Use these steps to ensure you’re designing the right rewards and incentives for your ecosystem.
If you’re looking to enhance your impact even further, join us at Partnership Leaders!
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