Conclusion: Vendors use sales incentives, such as bonuses or rewards, as levers to focus the behaviour or outcomes of their sellers or channel partners. Many vendors work on quarterly results for their sellers, and set sales incentives for these periods. Vendors view sales bonuses and incentives as levers that they can put in place to try to drive a specific focus, or specific sales results.

Being aware of the existence of these incentives can help an organisation understand that incentives may be driving the negotiations approach that a vendor may be prepared to take, and on what solutions are being offered.

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Peter Hall

About The Advisor

Peter Hall

Peter Hall was an IBRS advisor between 2016 and 2020 who covered enterprise infrastructure, management, managing vendor and customer relationships, vendor capabilities and vendor offerings. Peter is also experienced in Start-Up’s and Mergers and Acquisitions. Peter has over 37 years of experience working in the IT sector in ANZ and Asia Pacific, gaining invaluable insights into vendor offerings and strategies, relationship management, and channel strategies. Peter’s an experienced executive having worked for Hewlett-Packard, Blade Network Technologies (acquired by IBM in 2010), IBM and Lenovo. Peter is also an accredited Tony Buzan Licensed Instructor in Mind Mapping.