What Are the Standard Discounts and Incentives for Distributors?

Some vendor leaders assume that there’s a universal benchmark for what distributors get ‘paid,’ but there isn’t.

At Channelnomics, we field questions about best practices, partner strategies, and channel programs every day. In this series, called “Ask Channelnomics,” we answer some of the questions we receive most from vendors.

Question: Our finance team is conducting a global review of our discounting and incentive structures, including those related to distribution. They’re asking if there’s a typical level of discounts, incentives, and other forms of compensation received by distributors. Is there an industry standard or benchmark?

Answer: It depends. (Apologies, but that’s the honest answer.)

When vendor leaders ask how much distributors are “paid” and what a standard discount looks like, the underlying assumption is that there’s a universal benchmark. There isn’t. Discounting and incentive structures vary widely by product, market, and sales model — and their value is contextual.