Partner incentive amount and type always seem to be in question and I can understand why. The partner incentive is the motivator and continual base driver of partner deals. Therefore, the type, amount and structure are very important decisions. In recognition of this, data on referral partner incentives was analyzed to determine the most popular incentive type and amount offered to referral partners to help direct referral partner strategy.
This data was analyzed by a third party and comes from referral partner incentives fulfilled by referral partner programs run on the Amplifinity partner referral program software, reported in The State of Business Partner Referral Programs. Here are the findings.
What type of referral partner incentives are companies providing and why?
There are many different types of referral partner incentives. Referral partner programs run on Amplifinity used three different types. This is how the usage came out:
- 60% used checks
- 20% used gift cards
- 20% used bank transfer
Checks had the highest usage with 60% of programs fulfilling on them. Checks were typically used when a referral partner program had variable reward amounts or offered a percentage of revenue to referral partners.
The 20% that used gift cards typically offered this type of referral partner incentive when they had a “bounty” reward structure.
Bank transfer tied with gift cards at 20%. This type of referral partner incentive was utilized when the partner program was paying out high amount regularly and wanted to group the incentive payments. This is also used when international payment are required in order to handle currency exchange.
What is the average referral partner incentive amount companies offer?
The other aspect of referral partner incentives that is even more deliberated on than referral partner incentive type is amount. Partner marketers and channel program managers need to ensure that the incentive is high enough to provoke action and keep the referral partner program top of mind but low enough so it’s still is less than the average cost per acquisition of marketing leads.
According to the data, the average referral partner incentive amount overall was $182. Here is the incentive amounts breakdown.
- 14% fulfilled on incentives that were greater than $1,000
- 76% fulfilled on incentives from $100 – $1,000
- 10% fulfilled on incentives from $40 – $100
The maximum incentive paid out to a single referral during the course of a year was $8,463. This variance in the amount of referral partner incentives can mostly be due to the structure of the incentive being a percentage of revenue and the different costs of the product or service the partner referred.