Palo Alto Networks Bets Big on Back-End Rebates

Vendor departs from channel norms with shift away from discounts, embracing back–end rebates and sales incentives.

Palo Alto Networks is rolling out major enhancements to partner profitability and predictability as part of its drive to incentivize partners to sell more products across its cybersecurity portfolio. The extensive update to the NextWave Partner Program includes two significant changes that aim to boost partner earnings through rebates and sales incentives.

The security vendor is shifting its compensation model to focus heavily on back-end rebates, moving away from relying as much on up-front discounts as a main lever for enabling partner profitability. In the past, the margin that partners could expect through up-front discounts varied widely between deals, making it hard for partners to predict their profitability and plan investments accordingly.