Not Your Father's Partner Programs: Growth Opportunities For The Channel

By John DeSarbo, ZS Principal

Information technology channel partner programs used to be so simple. For years, most partner programs had a straightforward structure. Channel partners, which were typically traditional resellers, participated in “reseller programs.” If partners met sales thresholds and invested in product training, then vendors provided financial and non-financial benefits. Partners that achieved higher performance tiers received richer product discounts and rebates, and in some cases earned co-op or market development funds (MDF). High-performing partners earned a logo and plaque to display their status. Some vendors created special program tracks for their non-reseller partner types, such as independent software vendors and managed service providers.

Unfortunately, while most IT partner programs were easy to understand, they frequently did not produce the intended results for either vendors or partners. Vendors poured millions of dollars into partner programs to add new incentives and support only to see a decline in partner participation and sluggish channel growth. CFOs questioned why so much was invested in the partner programs with no clear return on investment.  

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