Last week I taught our workshop, Professional Sales Channel Management. The course teaches channel account managers (CAMs) how to select, motivate and manage their channel partners. During the workshop, I advised CAMs to use a combination of carrots and sticks to maintain a healthy partnership. The next day, taking my exhortations to heart, one of the participants told me he was going to buy a carrot-flavored stick to use with his channel partners.

Partners face a continual barrage from suppliers to sell, sell, sell (or buy, buy, buy). Consequently, many partners adopt a defensive mode whenever a supplier’s CAM approaches. This type of relationship, however, is antithetical to the concept of “partnership”.

CAMs need to win the hearts and minds of partners through trust, sharing of information, joint planning, training, etc. Revenue is the end, not the means. CAM’s have many “carrots” to use - financial (discounts, rebates, MDF, etc.) and non-financial (lead-sharing, information sharing, education, joint-selling, key account planning, conflict management, etc.). Too often, CAMs don’t use all the carrots at their disposal, and don’t remind their partners of the actual, cumulative benefits of these carrots. Studies show that relying on positive incentives builds strong partnerships. Of course, partners must hold up their end of the bargain - sending their employees to training, developing partner plans, implementing marketing initiatives, etc. When they don’t, CAMs need to pull out the stick. Using negative reinforcement, however, is a tricky proposition. The best way to use the hammer is by beginning with a review of the partnerships’ overall goals, and the mutual account plan - if you have one. Use a stick (fewer leads, lower program status, less discount, etc.), but tie it to a specific plan of action. The plan should incorporate your knowledge of the partner’s specific strengths, personnel, finances and goals.