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.

1. Video:
“How To Calculate Commissions and
Partner Negotiations”

2. Tenego Partnering: Services

3. How To Calculate Commissions and
Partner Terms Negotiations

4. Two Sides: Vendor and Reseller
Vendor Wants
Someone already travelling the road
Reseller Wants
Someone to create/pay for the road

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. 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. 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. 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. 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