Channelnomics data shows one in three partners struggle with vendor complexity – and the impact on productivity, pipeline velocity, and revenue performance is significant.
An astonishing figure surfaced in Channelnomics’ quarterly Partner Confidence survey: One in three channel partners operates with significant friction in vendor relationships across programs, systems, and go-to-market activities.
What makes this notable is that it is likely understated. The ratio is derived from an aggregation of reported challenges, yet in the field partners consistently express frustration with overly complicated channel programs, restrictive – even regressive – partnership requirements, unrealistic sales expectations, persistent channel conflict, and systems that make accessing information and support difficult and time-consuming.
This is a persistent problem for vendors seeking to maximize the value of their channel partners. Channelnomics research has consistently found that ease of doing business – the simplification and removal of friction from the go-to-market process – has a greater influence on partner behavior (investment) and performance (sales and revenue contribution) than any other factor.
Channel Friction Is Hurting Partner Productivity and Revenue
Channel leaders frequently cite ease of doing business as a priority, yet execution falls short. As Steve Jobs noted, simplicity is hard. Removing friction requires continuous improvement, a willingness to challenge entrenched policies and processes, and sustained investment.
When faced with the complexity of simplification, channel teams often default to more familiar and controllable levers, such as adjusting incentives.
There are, however, clear opportunities to improve partner productivity and engagement, particularly in partner relationship management and related systems.
Outdated PRM Systems Are Costing Deals and Efficiency
One in four partners report that insufficient or ineffective relationship management systems impede their ability to execute on vendor expectations. PRM platforms are widely viewed as cumbersome and outdated. Partners struggle to access basic information, let alone transact efficiently through automated systems. Instead of enabling sales, PRMs often slow them down, forcing partners to rely on account managers for support and placing additional strain on vendor resources.
Why Vendor Complexity Is Slowing Pipeline Velocity
Quoting processes present another source of friction. Partners report that obtaining pricing can take excessive time, often requiring multiple revisions and corrections. The result is lost momentum and, in some cases, lost business. Channelnomics data indicates partners can lose up to 25% of opportunities due to slow and inaccurate quoting processes.
Incentives add further complexity. Many partners lack visibility into what they have earned, what is tied to specific deals, or how close they are to achieving performance thresholds. Incentive management systems are typically designed to prevent overpayment, but in doing so they often limit transparency and usability.
Basic enablement gaps persist as well. Limited access to product specifications, marketing assets, and sales playbooks leave partners without the information needed to effectively generate and close opportunities.
Ease of Doing Business Is the Key to Channel Growth
Addressing ease of doing business can appear overwhelming when viewed in totality. Applying the 80/20 rule offers a practical starting point. By identifying and prioritizing the issues that create the most friction, vendors can make targeted improvements that deliver disproportionate impact.
This dynamic is driving renewed investment in channel management systems. Many vendors continue to operate with outdated PRM and incentive platforms due to perceived switching costs. While replacement can be complex and costly in the short term, a growing number of vendors – approaching 50% this year – are finding that system modernization delivers measurable gains in both internal efficiency and partner productivity.
The implication is straightforward. Vendors that continue to tolerate friction in their channel operations are effectively taxing partner productivity and diminishing their own growth potential. Ease of doing business is not a soft metric or a branding exercise – it is a measurable driver of partner investment, pipeline velocity, and revenue outcomes. Vendors that treat it as such will see the return. Those that do not will continue to wonder why partner engagement and performance fall short of expectations.
Larry Walsh is the CEO, chief analyst, and founder of Channelnomics. He’s an expert on the development and execution of channel programs, disruptive sales models, and growth strategies for companies worldwide.
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