What counts as partner sales?
Partner sales is any revenue sourced, influenced, or transacted through a company outside the vendor's own payroll. It covers three distinct motions: resell, where the partner buys at a discount and sells on their own paper; referral, where the partner introduces a qualified buyer and the vendor closes on vendor paper; and co-sell, where both teams run the deal together and share credit under a written agreement. Affiliate traffic, agency recommendations, and marketplace listings also fall under partner sales when the partner is compensated for the outcome. If a non-employee materially moves the deal, it belongs in the partner column.
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How are direct and partner sales conflicts prevented?
Conflict is prevented by a written rules of engagement document that every direct rep and every partner signs. The document names which accounts are reserved for direct, which segments default to partner, how deal registration locks an opportunity once approved, and what the tiebreaker is when a registration lands on an account a direct rep is already working. A fast decision SLA, usually two to three business days, matters more than the specific rule because partners disengage from slow programs long before they disengage from fair ones. Published rules enforced consistently remove most heat even when individual deals get complicated.
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How does deal registration work?
A partner submits an account name, primary contact, use case, and expected close window through the partner portal before actively working the deal. The vendor's partner team reviews the submission against existing direct and partner pipeline, approves or declines within a defined SLA, and locks the account to the registering partner for a protection window of usually 60 to 180 days. During the window the registered partner is credited and paid regardless of who else touches the account internally. If the window expires without a signed order, protection drops and the account returns to open status for other partners or the direct team.
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What margins do partner programs typically pay?
Standard reseller margins run 10 to 30 percent of annual contract value, scaled by partner tier, deal size, and whether the opportunity was registered or sourced by the vendor. Referral fees sit lower, usually 10 to 15 percent of first-year revenue, because the partner is not carrying the deal end to end. Premium margins of 30 percent and above are reserved for implementation partners who deliver services alongside the software, carry certifications, and take on first-line support. Discount stacking is almost always capped so that a top-tier partner on a registered deal with volume commitments cannot combine every lever at once.
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What is MDF and how is it used?
Market Development Funds, or MDF, are vendor dollars allocated to partners for co-branded campaigns, events, content, and demand generation activity that drives joint pipeline. MDF is usually earned, partners accrue a budget based on prior-year revenue or tier status, and claimed against pre-approved activity plans with proof of execution and reported outcomes. Well-run programs tie MDF release to specific pipeline or revenue targets rather than lump-sum grants, which keeps spend accountable and partners focused on activities that convert. Unused MDF typically expires at the end of each fiscal period rather than rolling over indefinitely.
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What are partner tiers?
Partner tiers rank partners by annual revenue contribution, certification coverage, customer satisfaction, and co-marketing commitment, releasing benefits as a partner moves up. A common three-tier structure runs Authorized, Advanced, and Premier, or Silver, Gold, and Platinum, with each tier unlocking a higher discount floor, longer registration protection, more MDF, priority lead routing, and access to named vendor resources like a dedicated partner manager. Tiers are reviewed annually against published thresholds so a partner always knows what to grow next. Clear tier mechanics are what separates a durable program from a logo-collection exercise.
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How is partner-sourced different from partner-influenced pipeline?
Partner-sourced pipeline is an opportunity the partner originated, usually proven by a registered deal submitted before the vendor had the account in CRM. Partner-influenced pipeline is a deal the vendor already had where the partner contributed meaningful work, a demo, an executive sponsor, a technical reference, or a signed implementation plan, without owning the original open. Programs report both numbers and compensate them differently. Sourced pipeline earns the full channel discount or margin. Influenced pipeline earns a smaller influence fee or SPIFF, with the strict discipline that only one partner can be credited per deal to prevent double-counting.
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What is co-sell and how is credit split?
Co-sell is a deliberately shared motion where the vendor's direct rep and the partner's account team work an opportunity together, usually on the vendor's paper, with the partner delivering domain expertise, implementation scope, or an existing customer relationship. Credit is split by a written co-sell agreement signed before the deal is worked, with the partner earning a reduced margin or an influence fee rather than the full resell discount. Quota attainment is counted for both the direct rep and the partner account manager so neither side has an incentive to push the deal into a single-ownership lane and starve the other.
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Who owns the customer relationship after a partner-led sale?
Ownership depends on which motion closed the deal and what the partner agreement says. On a resell, the partner invoices the customer, owns renewals, and typically owns first-line support, with the vendor supporting the partner rather than the end buyer directly. On a referral or co-sell, the vendor owns paper, renewal, and support, and the partner is paid their fee and stays involved on an advisory or services basis. Either way, both parties should see the same account record, pipeline, and support history, which is why partner-led revenue needs the same CRM as direct rather than a side portal.
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What should a partner sales program commit to in writing?
A credible program commits to five things in a signed agreement: the margin and fee schedule by motion and tier, how a partner earns and keeps them; deal registration rules including the protection window and the decision SLA; the enablement path, which trainings and certifications unlock which benefits; the co-sell and attribution model, how sourced and influenced credit is counted; and the marketing support, MDF accrual rates, co-branded assets, and lead sharing commitments. If any of those five are vague, partners either disengage or push every deal into direct where the rules are clearer. Written clarity is what makes a program worth joining.
