Though channel partners can buy products at discounted rates, vendors still need to invest to help them generate demand. There are three basic models for funding channel partner programs: market development funds, contra-revenue funds, and co-op funds. These are distinctive models, but businesspeople commonly confuse them. Therefore, you should be careful to specify to the partner exactly what kind of funding your company offers. Market development funds (MDF) are distributed to partners in … [Read more...]
Chapter 19 – Channel Partner Programs
In Chapter 18 we explained what channels are and why so many companies choose to utilize them. In this chapter we focus more specifically on channel partner programs, which are formalized groupings of sales and marketing activities designed to attract and retain channel partners. Many of the foundational elements of channel partner programs are table stakes for playing the game of channel distribution. Smart companies understand that well executed channel partner programs can create a … [Read more...]
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