An authorized reseller is a business partner that has entered into a contractual relationship with the vendor to sell their products. Authorized resellers have been vetted by the vendor and are authorized to sell their products to end customers. This type of partnership often involves training, marketing support, and other resources provided by the vendor to the authorized reseller.
Channel incentive program management (CIPM) is the real-time management of incentives such as marketing development funds (MDF), sales performance incentive funds (SPIFFs), loyalty programs, and other rewards offered to channel partners. CIPM provides actionable metrics and drives revenue for vendors and their channel partners.
A vendor that makes and sells software products that run on one or more computer hardware or operating system (OS) platforms.
Joint Marketing Funds (JMF) are programs designed to support joint activities between a vendor and its channel partners. JMF programs are intended to provide certified partners with the funds to support a range of proactive, revenue-generating activities such as advertising and direct marketing campaigns, these are normally agreed up front and partly attached to revenue goals.
Market development funds are used in indirect sales channels whereby a vendor makes funds available to help channel partners, resellers, VARs, or distributors sell its products and create local awareness. The funds are issued to partners in advance of sales and are discretionary in nature, as they are based on predicted or expected revenue but based on last years closed revenue.
A 1T (or Tier 1) partner is a channel partner that purchases directly from a vendor. This type of partnership typically involves a contractual relationship between the vendor and the partner, allowing the partner to sell the vendor’s software and hardware products directly to end customers.
PRM is a combination of the software, processes, and strategies companies use to streamline business processes and support the activities required to manage the entire life cycle of channel partners. It typically includes a partner portal, partner database, and other tools that allow companies and partners to manage leads, revenues, opportunities, and sales metrics and in some cases through joint prospecting tools.
Tier 2 partner is a reseller that purchases products from a distributor who, in turn, purchases products from the vendor. In this scenario, the vendor sells to the distributor, who then sells to the channel partner. This type of partnership often involves a distribution agreement between the vendor and the distributor.