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Designing an Appropriate and Effective Channel Manager Sales Incentive Plan


Channel managers and other salespeople with responsibility for indirect sales channels drive their companies’sales performance through independent third-party resellers. While the channel manager position is a sales role, it also involves a number of non-selling functions such as developing business plans with channel partners, training channel partners’ personnel, and hiring and terminating channel partners.

Consequently, as companies design incentive compensation plans for this role, it is critical to determine if it is sales-oriented enough to warrant a sales-incentive plan (as opposed to a broad-based or executive incentive plan). Since the nature of the role frequently varies, each company must consider the unique characteristics of the position as they evaluate each of the key compensation design parameters—target pay levels, pay mix, performance measures, delivery mechanics, and payment timing.

Take a look at our latest research on this topic to identify a complete compensation package for your Channel Managers.

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