SoftLetter

Channel Optimization: Are You Giving the Channel too Much? Part 2 of 2
October 15, 2005

Not making money selling a product is a problem for the channel, and one that you should care about as it results in less mindshare for your company. Unless the channel is providing valuable fulfillment benefits, a direct sales model always makes the most sense. Funding channel switchin is throwing money away. The big win is not from simply figuring out how to pay the channel more, but making sure the intended margins and payments reinforce desired behaviors in the channel. Increasing MDF payments for a product that will not benefit from additional advertising will only help to subsidize other products. Offering rebates without the appropriate strings turns them into handouts.

Practice: Optimize

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