Optimizing Channel Compensation

Managing Channel for Collaborative Advantage

Course Overview

A great deal of pressure is being brought to bear on channel members. Continuous pricing pressure has driven many distributors to seek volume over specialization. Many customers go around distributors to directly negotiate with suppliers, and this puts the entire burden for compensating distributors on suppliers. This volume-driven mentality leads to a lack of focus on new product introductions and service innovations. The process leads to customers calling the shots on services and deciding what and how distributors should be paid. If the distributor is not compensated and is not partnering with the supplier correctly, the distributor will be forced to support those products where it can do the most volume. The process will lead to a weak customer relationship for the distributor and a high cost of new product introductions for the supplier (sales efforts and product failures). Thus, optimizing channel compensation has a direct impact on aligning three key resources (supplier—distributor—customer) of a supply chain which leads to successful and sustainable collaboration in the long term.


Who Should Attend

  • C-Suite, Business Owners and Entrepreneurs
  • Supplier Development Executives
  • Marketing VPs and Directors
  • Product Managers
  • Business Development Managers

What can you do immediately after the course

  • Strengthen your channel relationship
  • Apply a structured approach to assess your channel health
  • Access to our ready-to-use channel assessment toolkit
  • Learn channel successes and failures – stories and lessons
  • Identify specific ideas to optimize channel compensation and bottom line
  • Gain insight into real-world case studies to see how successful firms manage supplier alignment / partnership


"Real world-examples with realistic framework made the content very rich. The program helped us generate specific ways to improve our channel compensation."

National Channel manager, Electrical Distributor

Course Outline

Channel Goals

Understand the process of determining and documenting channel objectives, measures (metrics) and targets for a given SUPPLIER or PRODUCT CATEGORY or MARKET SEGMENT.

Channel Focus

Identify channel partners to achieve channel goals. Commitment analysis is the process of deciding core suppliers for a given product line or category.

Value Proposition

Develop effective value proposition that engages channel partners to create customer value.

Channel Drivers

Implement channel value proposition across the organization at various levels – both suppliers and customers

Collaborative Advantage

Manage channel collaboration for competitive advantage. Process of managing channel alignment and resolving channel conflicts.

(CATEGORY-SPECIFIC) Channel Performance

Managing channel partners to achieve channel goals. Performance analysis is the process of assessing supplier performance within a product line or category.

Channel Forces

Proactively manage change to effectively adapt to channel forces.

Channel Inputs and Outputs

Communicate channel inputs (goals and challenges) and outputs (results and performance).

Course Packet – Tools and materials

What will you receive at the program?

What do you need to bring?

Slides as a course booklet

Laptop or tablet for class activity

Workbook for exercises and activity

Financial metrics and numbers for you to use in the session

Channel Assessment Toolkit


Best Practices Framework Maps




Course Instructors

Barry Lawrence, Pradip Krishnadevarajan, Senthil Gunasekaran

Course Timings

Day 1: 8:00am-5:00pm
Day 2: 8:00am-noon