Learn How to Calculate Sales Commissions and Partner Negotiations


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We have found that every company struggles with determining their sales partner channel commission structure. Many adopt what seems to be a de-facto ‘standard’ from their sector or what one of the global technology companies use, even when your company’s products-services mix is different and what the partner is gaining is different. These slides outlines Tenego’s methodology that you can use to determine your company’s Standard Partner Commissions, based on what it costs for you to sell your products. ALSO you get will a list of the factors used in partner discussions and negotiations that may increase or decrease these commissions and incentive structure.

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Learn How to Calculate Sales Commissions and Partner Negotiations

  1. 1. Video: “How To Calculate Commissions and Partner Negotiations”
  2. 2. Tenego Partnering: Services
  3. 3. How To Calculate Commissions and Partner Terms Negotiations
  4. 4. Two Sides: Vendor and Reseller Vendor Wants Someone already travelling the road Reseller Wants Someone to create/pay for the road
  5. 5. What do you want from a Partner? Lead Generation Qualification Sales / Closing Delivery Support Direct Sales Resellers/ Sales Agents… Referrals Full Service / OEM / System Integrators… Sales & Delivery / Complementary Services
  6. 6. Partner Programme: Quinn Essential Financial Software Ltd DEMO Product: ERP: Financials, Order Processing, Stock Control, CRM, SRM, Business Intelligence/Reporting… Sectors: Wholesalers, Distributors, Manufacturers, Professional Services Companies, Retail, Supply Chain Management Companies Regions: Current: Ireland, UK Target: North America; US and Canada - investigating Netherlands, Australia and other English speaking Quinn Typical Deal: Year 1: Lifetime: Sales Cycle Length: 6 to 12 months €20,000 €100,000 €500,000 €150,000€250,000 Licence: €40,000Annual Support: Annual Services: Services: Partner Types and Responsibilities: Customer Support Lead Generation Qualified Leads Meeting 1 Meeting 2 / Demo Evaluation Propose / Close Implement Reseller & Implementer: Reseller/Agent: Commissions, Targets and Incentives: 18% Targets: Year 1 Year 2 2% 3 6 7% 31 61 per Quarter Reseller & Implementer: Licence: On Activity Targets: Propose / Close On Sales Targets: Qualified Leads 18% Targets: Year 1 Year 2 2% 3 6 7% 31 61 per Quarter Reseller/Agent: Licence: On Activity Targets: Propose / Close On Sales Targets: Qualified Leads Partner Supports: Training: Sales Training, Solution Training, Implementation Training, Support Training Sales Materials: Presentations, Brochures, Case Studies, Testimonial Videos, Website Content Sales Support: Joint Roadshows, Joint Webinars, 1-to-1 Sales person support, Reference Site Visits Cooperative Marketing: funding for Events, PR, Direct Marketing and Outbound Call Campaigns, Trade Shows etc per annum cost €1,500 €500 €50,000 €10,000 Referrral: 8% Targets: Year 1 Year 2 1% 14 14 Referral: Licence: On Activity Targets: Meeting 1
  7. 7. 1) How Compelling is the Product’s Customer Value Proposition? 2) Market Opportunity / Market Conditions 3) Brand: New Product or Known Brand 4) New Solution Space / Early to Market 5) Competition 6) Resulting Services Revenue Generated 7) Complexity of the Sale / Length of Sales Cycle 8) Product Proven Sales Process and Reference Sites 9) Clear Qualification Criteria, Lead Gen Materials and Methods 10) Strong Partner Sales Support 11) Cooperative Marketing Funds and Funded Resources 12) What Other Products are funding the Reseller’s Sales Efforts? 12 Arguments to Increase or Decrease %
  8. 8. Software Business Experts  Practical  Results Focussed  International Business Development  Hands-On Execution Oriented CONTACT DETAILS: NSC Campus, Mahon, Cork, Ireland + Dublin, London & Dubai Web: www.tenegopartnering.com Email: accelerate@tenegopartnering.com www.twitter.com/dkiernan www.linkedin.com/in/donaghkiernan Donagh Kiernan Founder & CEO
  9. 9. To Learn More About Sales Commissions and Partner Negotiations Download the Full Video to see: • Partner Projected Scenarios • The Cost of Your Sales Process • Commission and Targets Hosted by Donagh Kiernan, Founder and CEO of Tenego Partnering Or Email: info@tenegopartnering.com www.tenegopartnering.com http://ie.linkedin.com/in/donaghkiernan