Decoding Vendor Margins, Partner Profitability, and Total Economic Impact

Partner compensation is a topic of frequent conversation. Channel chiefs and program managers are constantly trying to find the right balance between the margin allocated to partners and the profitability of their product sales. Leadership teams and finance managers are always questioning whether they’re paying partners too much in the way of discounts. And partners will almost always say that they don't get a big enough cut of product sales.

In this primer, Channelnomics explains the different ways that partners make money and how vendors can influence sales through compensation and incentives.