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.