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Glossary

Partner tiering

Also called Partner tiers, Partner program tiers, Tiered partner program, Partner levels

Updated

Definition

Partner tiering is grouping partners into levels, such as Registered, Silver and Gold, based on measurable results like revenue sourced, deals closed and certifications. Each tier earns different benefits, so partners who do more with you get more back.

How partner tiering works

A tiered program has three pieces:

  • Criteria. What a partner must achieve to reach each tier, measured over a trailing period. Common measures are partner-sourced revenue, number of closed deals and certified staff.
  • Benefits. What each tier gets: a higher commission rate, a named partner manager, leads passed from your team, market development funds or better placement in your partner directory.
  • Review rules. When tiers are reviewed, how partners move up, and how much warning and grace they get before moving down.

The partner program tiers guide includes a full three-tier matrix you can adapt.

Why programs use tiers

Without tiers, a partner who sends one deal a year gets the same treatment as one who sends twenty. That is unfair to your best partners and expensive for you. Tiers tie benefits to results, give partners a visible next goal and tell your team where to spend time.

Choosing benefits that scale

Benefits paid only on results, such as a higher commission rate, cost you in proportion to the revenue that came in. Fixed-cost benefits, such as dedicated partner manager time or marketing funds, are best kept for the top tier, where the revenue justifies them. A partner scorecard makes the review step easier, because each partner's numbers are already in one place.

Example

A software vendor runs three tiers. Silver requires $50,000 of partner-sourced revenue in the trailing twelve months and pays a 20% referral fee. Gold requires $200,000 and pays 25%, plus a named partner manager and access to marketing funds.

Signal Partners starts the year at Registered, earning 15%. Over twelve months it sources four deals worth $62,000 in first-year revenue and gets two staff certified. At the annual review it moves to Silver, so its next deal, a $20,000 contract with Kestrel Foods, earns $4,000 instead of $3,000.

FAQ

Frequently asked questions

How many partner tiers should a program have?

Three is the usual choice: an entry level every approved partner joins at, a middle level for partners with a track record, and a top level for your most productive partners.

How often should partner tiers be reviewed?

Every six or twelve months, using results from a trailing period such as the last twelve months. Reviewing more often makes tiers feel unstable.

Should partners pay to join a higher tier?

Most SaaS programs do not charge, because a fee filters out small partners who might grow. Let partners earn tiers through results instead.
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