How to Incentivize Distributors?

Distributors primarily focus on sales rather than technical services to secure business. Their product inventory enables customers to enjoy immediate delivery, providing a seamless purchasing experience and meeting their instant needs. A distributor incentive program can enable you to connect your many distributors to boost sales if you rely on distributors, dealers, agents, and resellers to bring your products to customers. Distributor incentive programs can be an effective way of enhancing sales and meeting business goals.  With a well-designed and well-run incentive program, you can drive sales employees and discretionary spending on your items.

Incentive programs are an ideal way to bridge the gap between you and your sales partners. A mutually beneficial program that builds trust, loyalty, and a solid professional relationship between the two is the way to go. If these relationships are built on trust and mutual respect, they can be beneficial and provide many benefits. However, if these bonds are not as strong, they will drain your working capital and, eventually, your business. Implementing distributor incentive programs can foster stronger relationships with channel sales partners, enabling wider product distribution, as well.

The basic and most important aim of a Sales Incentive Program for a distributor is to satisfy their employees while aiming to achieve company targets. Closing deals also becomes much easier if a proper plan is executed well.


Distributors are always looking for new ways to boost consumer experience and sales. There are many ways to enhance and boost loyalty, marketing, and revenue, but incentive programs are among the most successful ways to build a company bond. In the retail sector, these methods are highly effective. Some of the many advantages of an incentive scheme are:

1. Increase in business:

Providing a financial incentive for merchants to carry their items is typically one of the most important factors in a company’s decision to make sales. Providing an incentive might catalyze a long-term partnership and make for a successful recipe for business growth.

2. The team is motivated:

It comes as no surprise that Incentives tend to have a positive impact on employees’ work performance. Due to these incentives, employees will be more likely to pitch, market, and give preference to your products in the shop, resulting in increased marketing and product circulation.

3. A bond between you and customers:

Incentives pave the way to create an environment filled with loyalty and motivate employees to continuously excel in their field of work by providing the best service to customers. This situation is ideal for both parties as they are getting something good out of it. It also increases sales and boosts morale.

What kinds of incentives are more effective for the distributors of the service sector?

A good mood is equal to good performance. Enjoying your work can only be true if you are not always frustrated and are motivated to work to your full potential each day. Keeping your sales team motivated can be a daunting task. It might be because they interact with customers all day, and sometimes these conversations can take a turn. So here are a few examples of incentives that are more effective for the distributors of the service sector:

1.Distributor rebate program:

Rebate schemes for distributors enable your business associates to get money back if they meet specified purchase conditions. Companies frequently use these incentives to induce the desired behavior.

2. Customer rebate program:

A customer rebate program can help an item gain traction with consumers. Because of the growing interest, distributors have a simpler time selling to merchants and other clients, which is how these programs boost distributor-manufacturer ties.

3. Gamification might be a good idea to switch things up:

The concept of gamification isn’t new. It was called ‘contests’ in the past, and though the term itself is new, it does not mean it is only for the new generation! The idea behind gamification is to induce a sense of fun in the monotonous pattern of work and life that people face. Gamification will encourage people to work harder and win points. Switching things up occasionally works as change is the only constant.

4. Annual trips:

Offering yearly recreational trips would be a great idea. Not only will it create strong relationships between the team members, but it will also boost their motivation. This would make for a fun and cost-effective incentive. It would also create a positive atmosphere among the employees and boost their creativity.


Understanding your team members and their requirements is important. You have the freedom to design a plan as and how you would like. There are some points to keep in mind and some ideas that will help you achieve the goals that you all can follow. Identify what will work for your team and design a plan accordingly. 

About Author

Amit Jain

Sales Compensation Expert, Founder, Mentor - Helping organizations transform their sales incentive programs into growth engines