TL;DR
Partner leveling is breaking under the weight of partner ecosystem complexity. Traditional tiers still dominate, but the real advantage now comes from giving different partner types clear, fair paths to progress, without turning the program into a spreadsheet maze.
With 65% seeing leveling as integral to partner strategy and 73% keeping requirements to four or fewer, the message is clear: complexity must be managed, not multiplied. The winners will be the vendors that make partner status transparent, measurable, and motivating in real time.
Memorable takeaway: The best leveling programs do not just rank partners. They show every partner how to grow.
Meet the Panel
Background to this eBook on Partner Leveling (Tiering)
Channelscaler recently hosted a virtual panel delving into the topic of Partner Leveling (Tiering). On the day, the panel explored how to successfully implement an effective partner- leveling program and the benefits for vendors and partners.
The panel featured senior partnering executives:
- Natalia Vianden, Sr. Director, Global Partner Programs & Strategic Initiatives at Extreme Networks
- Dave Jordan, Global Partner Programs and Strategy at Thales
- Kenneth Fox, CEO at Channelscaler
- Margaret Adam, Director of Product Marketing at Channelscaler
The global audience participated in live polls throughout the webinar, the results of which are shared in this complementary eBook, alongside insights and guidance on how to develop and implement your own partner leveling program.
What is Partner Leveling (Tiering)?
Partner Levels, or Tiers, are different ranks within your partner program to recognize partner achievements and segment those partners based on specific requirements. By categorizing partners based on their performance, you can offer tailored benefits and incentives that align with their achievements and encourage them to reach higher levels within the program.
Many partner programs use “metals” as a naming convention for different levels, e.g. Platinum, gold, silver and bronze. While others use names that reflect skills and/or maturity, e.g. registered, advanced, specialized etc. Or they might incorporate points-based programs to provide more flexibility and granularity.
Whichever you choose, there are many different sizes and shapes to segment your partners and make your program distinctive.
“Not all partners are equal, but all are important.”
Kenneth Fox
CEO
Channelscaler
65%
view the leveling program as integral to their partner strategy
3 Key Benefits of Partner Leveling (Tiering)
Manage Multiple Partner Types
Two thirds of respondents said being able to cater for multiple partner types was one of the most challenging aspects of their partner program.
By applying levels (tiers) you can track and reward different types of partners’ activities, KPIs and behaviours in a transparent, relevant and fair way.
Increase Partner Engagement
65% of respondents reported improved partner engagement as a result of their partner leveling (tiering) program.
Human nature motivates the desire for recognition and to achieve higher status, with clearly designed goals resulting in better performance.
Clear Prioritization
In a growing partner ecosystem, it’s essential to allocate your time effectively.
By having levels (tiers), you can reward higher performing partners with increased resources and engagement to drive high impact results, while identifying and targeting rising stars to support their escalation through these levels.
Rewarding Achievements
Traditional level / tier-based programs are used by 85% of poll respondents. These are based on fixed requirements (or performance metrics), with each named tier offering a step-wise advancement to a predetermined set of benefits and resources.
- Increased margins
- Dedicated vendor resources
- Higher service levels / SLAs
- Priority support
- Market development funds (MDF)
- Marketing tools
- Additional/discounted training/enablement
- Priority support
Points Based versus Levels Based Programs
With the growing complexity of partner ecosystems and markets, we are seeing positive business outcomes being achieved by focusing on a combination of different factors. Each partner’s recipe for success can differ, dependent on their approach, expertise and the added value that they offer customers.
This growing need for flexibility is why a small, but significant number of vendors (11% of poll respondents) are offering a points- based program, providing recognition of a wider range of business activities, delivering continuous progression with frequent, smaller rewards.
Alternatively, 4% of respondents are taking a hybrid approach by deploying a combination of levels / tier-based programs for core leveling and points-based systems for additional, often personal, rewards or incentives.
Offering points can drive engagement throughout partner organizations and deliver more partner mindshare than revenue driven incentives alone.
“In partner leveling, points come from activities like registering deals, running campaigns, attending meetings, or handling renewals, based on the program’s requirements.”
Kenneth Fox
CEO
Channelscaler
Identifying Partner Leveling Requirements
First and foremost, your partner program requirements should align with your business strategy, and reward behaviours that contribute to meeting your corporate goals.
Common leveling (tiering) criteria include revenue targets and training and certification requirements, and these are still important components of most programs.
However, the growing complexity of partner ecosystems, new types of partners and new business models such as Software as a Service (SaaS), mean it is critical that technology vendors segment and differentiate their partners based on the value they deliver. Not only to the vendor, but also to the customer.
“We need to focus on giving the partners options for driving their own success… and providing them ways to integrate with our business and sell our solutions in a way that fits with how they have built their own business.”
Dave Jordan
Global Partner Programs + Strategy
Thales
Measuring Partner Performance
Leveling programs allow channel leaders to easily manage and prioritize partners based on business impact and demonstrated commitment.
To unlock higher levels in a tiered program, partners must typically meet a transactional revenue threshold and/or complete training criteria (normally both), although as we highlighted earlier, many organizations are incorporating a wider range of criteria.
When building your program, it is important to remember that the more requirements you have, the more complicated the partner program. Not only does this make it more complex to track and calculate, but partners often find it confusing. For this reason, the majority (73%) of respondents have 4 requirements or less, in their leveling program.
Multiple data sources are often required to track different criteria. Identifying robust and reliable data sources are essential to managing your program and assessing partners fairly. As such, it is vital that your leveling program provides a trusted, single source of truth.
Typically, partnership levels / tiers are awarded on an annual basis, reflecting earned revenue and other criteria achieved within the previous financial year and partners will remain on that level for the next 12 months.
However, this exercise should not be just a year-end task to track and review. Ongoing and regular tracking and review is important for not only forecasting year-end results, but also supporting partners and ensuring continued engagement and motivation to reach the next level.
Flexible Criteria for Long-term Success
Partner ecosystems are constantly evolving, and so too are partner programs. As such, it is crucial to adapt to market changes to ensure that program requirements and benefits remain relevant.
It is no surprise then that over 60% of respondents indicated that their leveling programs had evolved in the past year by incorporating new criteria. These included factors such as specialized capabilities, customer satisfaction metrics, and recurring revenue KPIs (e.g. renewals, active usage, and NRR).
For an effective leveling program, it is also important to account for global variations in thresholds to ensure fairness and achievability. Partners in emerging markets, for example, might face chalenges in meeting the same revenue targets as those in more mature markets, but they could demonstrate greater lead generation or opportunity creation.
Webinar Poll: How have the requirements of your leveling program evolved over the past year? (respondents were able to select more than one option.)
Top Tip
Make sure your program empowers all partners to succeed and is designed to future-proof your business.
“I think it’s a balance of relevance and ease of use, and also getting partners to do what we want them to do.”
Dave Jordan
Global Partner Programs + Strategy
Thales
The Benefit of Automation
A good partner leveling program should make it easy for vendors and partners to know where they stand and what is needed to reach the next level or tier. This is where Automation comes in.
A platform-based approach transforms the execution of a leveling program from a mundane, error-prone, after- the-fact exercise based on grueling spreadsheets and manual updates, into a real-time visual experience for both partners and vendor users.
Automation also ensures a single source of truth is applied to all partners equally, with automated calculation and application of data from multiple sources and numerous criteria, delivering a single-pane-of-glass observability.
“Whenever I want to implement a new program, my number one priority is to have data to measure it on and can I automate it? If I can’t measure it, if I cannot automate it, I’m not going to implement it.”
Natalia Vianden
Sr. Director, Global Partner Programs & Strategic Initiatives
Extreme Networks
Final Words of Advice
“Ensure that your leveling program includes elements to let them differentiate themselves and choose their own path.“
Dave Jordan
Global Partner Programs and Strategy
Thales
“Accurate and actionable data powering your program is key, and automation is the only way to achieve that.”
Natalia Vianden
Global Partner Programs & Strategic Initiatives
Extreme Networks
“Be easy to work with / do business with – make your program simple to understand, clear how to attain, & visualize it with a single pane of glass.”
Kenneth Fox
CEO
Channelscaler
