Conflicting interests and lack of trust are the biggest obstacles to healthy, profitable channel sales partnerships. Vendors might be interested in selling as many products as possible through as many resellers as they can, for example, while resellers such as contractors are interested in selling more (and better) products than competing resellers. Ultimately, all parties are running a business and are looking out for Number One. This can lead to a lack of trust between channel partners. One of the best channel management strategies you can utilize to overcome these conflicts and align partners’ goals with yours is a channel incentives program.
Strategically using channel incentives to accomplish these four things will lead to longer-lasting, more mutually beneficial relationships: