Why a Point-Based Partner Program
Amid rising competition and the need for efficiency in partner ecosystems, many technology, media, and telecom vendors are moving away from traditional metal-tier programs (gold, silver, bronze) toward point-based systems. Unlike metal tiers that mainly reward resellers, point-based programs recognize the broader ecosystem, including non-transacting partners who influence opportunities, customer retention, and innovation.
Moving Beyond Metal Tiers
Metal-tier models are increasingly viewed as outdated. They struggle to manage today’s vast partner ecosystems—ten times larger than in the past—and fail to incentivize behaviors beyond transactions. Critics argue that too many partners gain benefits with little effort, diluting program value.
In contrast, point-based programs score partners individually across multiple dimensions, making it easier to identify true value. This approach benefits vendors with large and diverse networks, allowing them to reward both resellers and ecosystem partners who drive growth. Companies like Microsoft, VMware, Smartsheet, and Okta are already making the transition.
The Rationale for Points-Based Models
According to Canalys’ Jay McBain, today’s partners cross multiple roles and can’t be neatly segmented into rigid tiers. Points-based systems offer flexibility, enabling partners to earn distinctions aligned with their unique contributions. They also:
- Create equity by rewarding both transacting and non-transacting partners.
- Support a single global program, adaptable at the individual level.
- Foster co-innovation and collaboration across vendors and partners.
This model aligns with the ecosystem economy, where partnerships emphasize value creation, network effects, and integrated customer experiences, rather than simply pushing transactions.
Designing Effective Scoring Models
There’s no one-size-fits-all model. Vendors can tailor scoring systems to reflect their business priorities, usually across three to five dimensions. Common ones include:
- Contribution – revenue, growth, net-new customers, and deal registrations.
- Capability – alignment with strategic products, marketing expertise, and certifications.
- Commitment – consistency of results, loyalty, and training completion.
- Coverage and Consumption (often added by large vendors).
Each dimension can be weighted, allowing vendors to direct partners toward desired behaviors.
Using Data to Navigate Ecosystems
Managing partner ecosystems requires strong data. Information from multiple systems must be consolidated and fed into the scoring engine to calculate program-level and partner-level points. This enables vendors to:
- Track performance at the company, team, and individual levels.
- Measure the effectiveness of incentives.
- Invest resources where they have the most impact.
Practical Considerations
Point-based programs are not without challenges.
- Earning periods and calculations often reset quarterly.
- Eligibility rules may require training or milestones.
- Revenue thresholds (e.g., $50,000 minimums) prevent gaming the system.
- Caps per transaction ensure fairness across many partners.
Despite these guardrails, the flexibility and precision of point-based models far outweigh the complexity.
The Bigger Picture
Channel leaders face growing pressure to deliver at greater scale, complexity, and personalization. Point-based partner programs provide a framework to do just that, enabling vendors to:
- Engage more diverse partner types.
- Reward value beyond transactions.
- Foster innovation and collaboration.
- Gain better ROI by understanding partner strengths and weaknesses.
As McBain notes, many organizations are still in the early stages of this transition, but momentum is building. For vendors willing to embrace it, point-based programs represent a fairer, more adaptive, and strategic model for ecosystem success.
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