Your Channel Incentive Program Needs a Marketplace

February 15, 2017 Deb Broderson

Your Channel Incentive Program Needs a Marketplace

Image result for market

The channel continues its transition towards embracing the impacts of the cloud and IoT. As the pace of change increases, the requirements of the channel ecosystem need to be redefined. Consideration of these shifting business models by channel sales and channel marketers, when designing and structuring their channel enablement and channel incentive programs, is important for two main reasons:
  • The transition to the cloud has severely impacted both partner profitability and their cash flow.
  • SMB partners lack the marketing resources to plan and execute effective marketing campaigns.

How does a marketplace help?

Chances are you want to accelerate time-to-revenue, right?  Then what better solution than offering your channel partners a marketplace of pre-packaged marketing plays that you know can be successful.  Rethink how a marketing services catalog (marketplace) can help your company and your partner be more successful.

What type of marketplace services would help your channel partners?

To give you an idea of what type of packages you could include in your co-pay marketing services, below is a list of commonly produced marketing assets. Depending on your target demographic, industry, or solution, some of these services may be more effective than others.


But I’m out of budget!

This is where co-pay comes in.  Providing marketplace services in the form of co-pay offerings can cater to the needs of prospective customers while increasing the collaborations between the vendor and reseller.

Co-pay definition: — An amount of money that a partner with available marketing development funds (MDF) is required to pay when executing or purchasing a specific marketing campaign. 

Co-pay is based on the mutual investment between a vendor and its reseller in a marketing activity that both believe will yield desired results. Co-pay ratios vary and are typically determined by vendors as part of their overall channel program incentive structures. The split can be 50/50, 60/40, or any other variation that the vendor deems appropriate.

Some co-pay programs have payout ratios that are based on the type of marketing program being purchased. This flexibility allows vendors to set a high-ratio payment amount for the most successful marketing; in some cases, they offer fully funded options. This flexibility allows resellers to make the most of their allotted budget. In addition, partners can take advantage of a broader set of marketing tactics without making a significant investment.

Advantages of marketplace services include the following:

  • Branding and messaging consistency
  • Reduced cost of production and distribution of marketing materials because of leveraging a common platform
  • Faster time to market and faster time-to-revenue
  • More efficient way to enable partners
  • Less time spent on planning, production, and launch of campaigns
  • Increased ability to customize and co-brand
  • Visibility into the utilization and effectiveness of campaigns
  • Better use of a MDF/co-op budget

The success of your marketplace will require consistent and regular evaluation cycles of your overall marketing strategy, programs, and results. Throughout the review cycle, it is important to understand the true value of your investments when it comes to MDF/co-op funds, as well as the overall value of a co-pay program.

Have a question?  Send me a note.  I’d love to chat.



About the Author

Deb Broderson

Deb Broderson comes to Perks with 30 years of diverse experience leading channel marketing, marketing operations and program management teams within the technology industry. Deb has provided strategic direction to Fortune 500 clients, developed and executed global, multi-channel, go-to-market strategies and created worldwide field marketing organizations. Deb has worked on both the agency and client-side of the business, providing a well-rounded perspective to client challenges. Deb was honored as one of the Top 50 Channel Chiefs in North America by CRN.

More Content by Deb Broderson
Previous Article
Channel Incentives: Marketplace Best Practices
Channel Incentives: Marketplace Best Practices

It is crucial for organizations to set up the right channel program using the right channel technology to m...

Next Article
Sales Professionals: Motivated by What?
Sales Professionals: Motivated by What?

The competition for top-performing sales professionals is fierce! Executives & HR leaders continue to look ...


First Name
Last Name
Subscribe to our Blog
Thank you!
Error - something went wrong!