Channel Sales

Channel partners are important to scale sales.
Commission structure / revenue share for channel partners are typically based on their level of effort in facilitating a deal. For illustrative purposes:
  • Limited Touch (i.e. platform listing / warm leads & intros only): 10%
  • Active Deal Sourcing or Qualified Opportunity: 20%
  • Assistance on Closing the Deal (i.e. address customer concerns / overcome objections): 30%
Similar logic for referral partners.
*Make sure there’s still sufficient margin to cover your direct costs after channel compensation.
For early stage companies, focus on creating one good channel model first, then replicate.
Remember, good partners offer complementary solutions and have a stake in your company’s success (e.g. more customers using your product increases the retention rate of their solution.)
Additional Sources: