Channel Incentives: Contra Or Opex

Channel leaders often fight an uphill battle when requesting incentive funds that can motivate partners toward higher productivity. When setting guidelines for channel spend, finance sees things in black and white: spending is either tied to revenue or not. If channel marketing fails to correctly categorize partner incentives, it may lose funding for programs that drive activity and results. In this report, we examine opex and contra incentives, offer guidelines for using each, provide insight into their timing and funding, and present examples and key observations from leading channel suppliers.