Understanding promotional allowance program regulations can be a bear, but if you want to design a market development funds (MDF) or Co-Op program that your corporate legal team and finance department will love, understand them you must.
This Incentive Insights takes a look at how the Robinson-Patman and Sarbanes-Oxley acts affect your promotional allowance programs.
The Robinson-Patman Act requires that a seller offer all competing resellers similar programs in a proportionately equal manner. But how does the legislation define key points in this statement such as “competing resellers” or “offer”?
Sarbanes-Oxley (SOX) regulatory requirements address issues born out of the Enron and Worldcom scandals. A side effect of SOX is many marketers classify their reimbursement expenses as contra-revenue, which can show up as sales decreases when reporting revenue. A better solution is understanding how to categorize reimbursement expenses against SOX requirements.
Learn more when you read Incentive Insights: Promotional Allowance Program Regulations.
About the Author
Perks WW Channel provides services and software to help you engage your B2B and indirect channel partners to improve sales effectiveness. With a listing on the Salesforce AppExchange and a global user base exceeding 9.25 million users, Perks WW Channel takes the guesswork out of channel incentives and loyalty programs. Our solutions empower leading global enterprises with the sales and marketing programs they need to produce a competitive advantage through their indirect sales channels. The available solution set encompasses the three most critical areas to optimize indirect channel performance: marketing enablement, incentive management and global managed services. We provide these services to some of the most influential companies in the world, all backed and supported by years of expertise and our Science of Motivation™ methodology.More Content by Perks WW Channel Experts