Partner marketing is a powerful way to extend your brand’s reach, tap into new customer segments and drive revenue. Alas, despite the best efforts of partner marketing teams, many B2B SaaS companies struggle to motivate their partners. Luckily, commission-based strategies can offer partners direct financial incentives to drive sales.
Below, we’ll explore common commission-based strategies, ways to communicate the benefits of commissions to potential partners and how you can leverage your marketing team to support partners’ success.
Let’s go!
What’s the low-down on commission-based strategies?
Do you wish you could supercharge your partner program? When all the marketing in the world isn’t enough, commission-based strategies might just be the ticket you need. (Everyone loves money, after all). Offering incentives to partners — based on their sales or the leads they generate — helps to align partners to your company’s sales goals by directly rewarding performance.
In short, commissions help the partner and the business work toward the same objective: growing revenue.
Companies can employ several types of commission structures in their partner programs. Some common ones include:
Percentage of sales
Many partner programs offer a commission plan that is a percentage of the total deal. For this commission strategy, partners receive a percentage of every sale they facilitate, which can vary based on the product or service sold or the total value of the sale. For example, a partner who sells a SaaS subscription might receive a 10% commission on the customer’s first-year revenue.
Flat fee per sale
A flat commission (also called a flat reward) is a commission structure where partners are paid a fixed amount for a sale instead of a percentage of the deal. In this model, partners receive a fixed amount for each sale, regardless of the total value of the transaction. A flat fee-per-sale strategy can work best for standardized products or services.
Tiered commissions
Do you want to reward the partners who achieve more sales volume or bring in a certain number of new customers? Tiered commission structures can be highly effective in driving partner performance. By providing incentives beyond a fixed percentage, such as access to marketing funds, leads, or promotion through digital marketing, you can motivate partners to go the extra mile in increasing their sales.
No matter how you plan to incentivize partners, choosing the commission structure that aligns with your business model and the type of products or services your partners are selling is essential.
How to communicate the benefits of your commission strategy
It’s not rocket science: Potential partners will sell more if they understand how they can benefit financially from the partnership and what support they’ll receive to drive sales. That’s why communicating the value of your commission structure is oh so essential when recruiting new partners.
Here are four tips to effectively communicate the benefits:
1. Be transparent about the commission structure
Clearly outline how commissions will be calculated and paid out. Potential partners should have a full understanding of what they can expect. Will they receive a percentage of each sale, or is there a flat rate? Are there any bonus opportunities for reaching sales milestones? Transparency builds trust and sets expectations early on.
Scaleo, an affiliate marketing platform we are in no way associated with, recommends “Setting specific goals, metrics, and benchmarks…[such as] monthly or quarterly sales targets, achieving a certain percentage of market share, or meeting customer satisfaction metrics.”
2. Highlight real-world examples
If possible, share success stories of other partners who have benefited from your commission program. Case studies or testimonials can show how your commission structure works in practice and provide proof of the financial rewards available.
Consider featuring partners who have achieved significant earnings or those who started small and grew with your company. Salesforce recommends highlighting both big accomplishments and small wins of a variety of partners: “Whether a mention in an email newsletter, a banner in your partner portal, or a speech at a partner summit, these shoutouts will make your partners feel proud and valued.”
3. Emphasize ongoing support
Prospective partners want to know that they won’t be left to figure things out on their own. Highlight the marketing, sales enablement, and training resources available to them. The more support they see, the more confident they’ll be in their ability to succeed — and earn commissions!
4. Address long-term growth potential
Growth potential makes your partner program more attractive to those looking for a sustainable, long-term relationship. Partners want to know how to *make more money* with your program. By emphasizing tiered commissions or growth incentives, you can show potential partners that they have the opportunity to increase their earnings over time. (We recommend featuring a partner testimonial on your website and social media).
With just a little background work, you can create a compelling case for why partners should join your program and actively participate in driving sales through commission-based strategies.
How to support partners to succeed with commission-based strategies
Simply offering a commission isn’t enough to drive results. Your partners need the right tools, resources and support to close deals! Here’s where your marketers can contribute.
Here are three tips to help partners take full advantage of commission-based strategies:
1. Provide training
Partners are more likely to succeed if they fully understand your product or service. Offering detailed product training, case studies, and sales enablement materials can equip partners with the knowledge they need to sell — and improve consistency. We suggest:
- Creating partner-specific webinars that explain how certain features work or how they benefit the customers
- Holding workshops where partners can ask questions and better understand your offerings.
- Offering coaching sessions that help partners learn how to talk about your solution, especially if it’s embedded in their product.
2. Offer co-branded marketing materials
One of the biggest barriers to your partner’s success is a lack of marketing resources. Do you want to save your partners time and ensure the messaging aligns with your brand? By providing co-branded marketing materials, you can make it easier to promote your product effectively.
We recommend giving your partners content for the following:
- Landing pages. Whether you can build them for your partners or just offer copy, landing pages are a great way to ensure that your partner “speaks” about your product in a way that aligns with your brand.
- Email templates. Whether it’s sales outreach or marketing nurtures, providing easy-to-use copy paste emails makes it easier for partners to get the word out to their lists.
- Social media posts and graphics. Don’t underestimate the power of social media! (Especially LinkedIn for B2B audiences). Social media posts and graphics that highlight your partnership and explain the benefits to prospects can go a long way toward helping partners sell your product. (As a bonus, these give your partners extra content to share on their channels).
- And more! (check out our recent article on co-branded content).
3. Recognize top-performing partners
Who doesn’t love a gold star? Another way to encourage your partners is by recognizing and rewarding top performers. Whether it’s public acknowledgment, bonus commissions, or access to premium resources, acknowledging your partners’ efforts motivates them to continue driving sales.
Grow your partner program with a content marketing agency that gets it
Commission-based strategies can be powerful in your channel and partner marketing arsenal. You can foster stronger, more successful partnerships by aligning partner incentives with your business goals, offering the right support, and effectively communicating the benefits. When done correctly, commission structures motivate partners to prioritize your brand and drive growth, leading to a win-win situation — for you and your partners.
But don’t go it alone…enlist a partner! Simply reach out, and we can help with all your partner marketing content needs.