The What and the Why of Partner Profitability

The balance of power is shifting. Gone are the days where solution provider partners beg to be included in vendor partner programs. Instead, solution providers have become savvy about which vendor’s lines to carry and are trimming unprofitable vendors from their line cards. In this dawning age of partner clout, where do you fit in the partner profitability formula? Are you providing enough opportunity for your partners to be successful in the market? Are your partner investments too high, resulting in a poor ROI for solution providers? In this study we examine components of partner profitability and how vendors can ensure they are integral to their partners’ business.

Our MarketStar Insight team worked with PartnerPath to gather and analyze input from both solution providers and vendors to identify ways each side can improve the profitability equation. To increase channel loyalty, vendors should consider the following:

• Front-end Margin is NOT Profitability
• Increase Partner Opportunity
• Make it Easy for Partners