Channel Pricing Practice
The channel pricing practice helps clients develop channel compensation structures based on a “performance-based” philosophy. This approach aligns the client’s specific goals with the functions performed by their channel. Partners that perform closest to the “ideal” receive the highest compensation. Designing channel compensation programs is often complex work. It requires identifying and ranking the clients goals, doing the same for end-customers requirements and then finding a method to measure partners’ performance. The practice team uses an approach they call Value, Measure, Communicate and Reward (VMCR). The resulting compensation structures must handle the diversity of the client’s product/service mix and the mix of channel types used by the client.