Ask the Expert: Partner and Alliance Manager Compensation
Ask the Expert: Partner and Alliance Manager Compensation
Base Salary
A typical base salary for someone with 4-7 years experience is $65-75,000 depending on local economic market factors. For someone creating corporate partner strategies, product line partnerships and manages a diversified partner taxonomy, or in other words, has the skill to manage all types of partnerships, the number easily starts at $95,000 and continues upwards depending on experience.
Commissions
Commissions and bonus are paid when the partnership goals of the company carry a specific quota for the year and can be measured and validated. For example, a company desires to achieve $10M in revenues and partnerships must deliver 50% of this number. The individual contributor compensation receives commissions on the five million dollars, and has a bonus attached with exceeding this amount.
Where Sales and Partner Management Meet
For a partner manager to receive commissions or bonuses, it is best to use a sales compensation structure model. In the partner development world, commissions and bonuses (C & B) are typically provided for:
a) channel managers
b) strategic partner managers and
c) day-day partner managers
The scale and weighting is weighted in favor of commissions when the goal is to drive consistent revenues. Bonuses tend to be attached to strategic initiatives such as long term OEM (private-label), licensing or product oriented joint manufacturing agreements, or consulting practice investments. This ensures a proper balance between the strategic-longer and tactical-short term challenge that most partner managers face on a daily basis. If management does not equally equate commission and bonuses, the company will lose out on either side.
One Size Does NOT Fit All
The group could not agree on the best bonus or commission fees to pay. This is usually up to the CEO but tends to follow very closely with the commissions of a sales executive, if not a bit lower. Another rule of thumb: At the very least, salary should comprise no more than 60% of the total pay package if you want to really incentivize the individual. This is also the case if the product line and company are somewhat established (i.e. product has been on the market for a year or so). Otherwise, it’s nearly impossible for the manager to make any money above and beyond the base salary.
For more information on partner development topics and tools, visit www.bmginc.com, or www.MyBizHomepage.com/Education for free tools.
Ask the Expert Partner and Alliance Manager Compensation - To learn more about this author, visit Sarah Gerdes's Website.
Like this article? Share it with your friends
As a general rule of thumb: the younger the company, the more weighted on bonus and commissions, whereas the more mature the company more weighted on the salary.
Base Salary
A typical base salary for someone with 4-7 years experience is $65-75,000 depending on local economic market factors. For someone creating corporate partner strategies, product line partnerships and manages a diversified partner taxonomy, or in other words, has the skill to manage all types of partnerships, the number easily starts at $95,000 and continues upwards depending on experience.
Commissions
Commissions and bonus are paid when the partnership goals of the company carry a specific quota for the year and can be measured and validated. For example, a company desires to achieve $10M in revenues and partnerships must deliver 50% of this number. The individual contributor compensation receives commissions on the five million dollars, and has a bonus attached with exceeding this amount.
Where Sales and Partner Management Meet
For a partner manager to receive commissions or bonuses, it is best to use a sales compensation structure model. In the partner development world, commissions and bonuses (C & B) are typically provided for:
a) channel managers
b) strategic partner managers and
c) day-day partner managers
The scale and weighting is weighted in favor of commissions when the goal is to drive consistent revenues. Bonuses tend to be attached to strategic initiatives such as long term OEM (private-label), licensing or product oriented joint manufacturing agreements, or consulting practice investments. This ensures a proper balance between the strategic-longer and tactical-short term challenge that most partner managers face on a daily basis. If management does not equally equate commission and bonuses, the company will lose out on either side.
One Size Does NOT Fit All
The group could not agree on the best bonus or commission fees to pay. This is usually up to the CEO but tends to follow very closely with the commissions of a sales executive, if not a bit lower. Another rule of thumb: At the very least, salary should comprise no more than 60% of the total pay package if you want to really incentivize the individual. This is also the case if the product line and company are somewhat established (i.e. product has been on the market for a year or so). Otherwise, it’s nearly impossible for the manager to make any money above and beyond the base salary.
For more information on partner development topics and tools, visit www.bmginc.com, or www.MyBizHomepage.com/Education for free tools.
Ask the Expert Partner and Alliance Manager Compensation - To learn more about this author, visit Sarah Gerdes's Website.
Like this article? Share it with your friends
| |||
 |
No article feedback found. | ||
|
Leave Your Feedback | ||
|
|||
 “Your Strategic Thinking Coach’s List of Ten Key Components of Effective Strategic Alliances”
| |||
| A strategic alliance is a partnership, a collaborative agreement and/or a relationship between two or more companies or organizations formed to pursue a set of agreed upon goals while remaining independent companie... |
|||
|
How to Build Successful Strategic Alliances
| |||
| First of all, what is a strategic alliance? A strategic alliance is a partnership, a collaborative agreement and/or a relationship between two or more companies or organizations formed to pursue a set of agreed upo... |
|||
|
Ask the Expert: Partner and Alliance Manager Compensation
| |||
| The debate continues to rage about the best compensation structure for partner managers. Recently BMG sat with a round table of chief executives, financial and alliance officers to discuss the merits behind the ple... |
|||
|
How to Identify, Form and Capitalize on Strategic Alliances
| |||
| The last decade has been a decade of change in how business' manage their resources, obtain funding and do business. The Internet has contributed significantly to this. Strategic Alliances have become the business s... |
|||
|
Using Strategic Alliances To Increase Your Business
| |||
| As a business owner, have you ever considered developing strategic business alliances to enhance the breadth of your marketing to sales funnel dramatically? Read on and you will discover 10 key steps you can take to... |
|||
| |||
Dr. John OdaJohn Oda Ph.D NLP is a business peak performance expert, an author, and speaker frequently called upon to provide corporate training, workshops and seminars for many companies in the United States. He is an expert in coaching sales and business professionals in overcoming the behaviors and obstacles that may impede their sales results and affect their bottom line. Since 1995, John has created a speaking bureau such topics, which include: time management, sales training, human diversity, leadership programs and etc. He provides companies with a strategic plan to increase their bottom line by over 25 percent yearly. - Visit Dr. John Oda's Website |
|||
Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
|||
Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) Jay Kubassek is a Canadian born entrepreneur, internet marketing genius, professional speaker, international real estate developer/investor, executive film producer, extreme sport enthusiast and a passionate supporter of several charities worldwide. In 2007, Jay's vision and dedication to help other entrepreneurs and business owners duplicate his marketing success led to the creation of his fourth company CarbonCopyPRO, an internet marketing firm already worth over 15 million dollars that has over 20 employees and contract workers with clients is 12 different countries. Jay resides in NYC with his girlfriend Jamie, three year old son Milo and dog Cooper. As executive producer he recently premiered his first film in the 2008 Cannes Film Festival. As an adventurist he is racing the 2008 Baja 1000 off-road race and is a member of the 2008 U.S. National Elephant Polo Team, The New York Blue who will be representing the US in the 2008 World Championships in Nepal. Visit Jay's Blog: www.JayKubassek.com - Visit Jay Kubassek's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
 Sarah Gerdes (Visit Sarah's Website) Sarah Gerdes is recognized as one of the leading partnership experts by Fortune, Inc. Magazine has represented governments, F50 firms and small businesses in forty-five industries. Learn her secrets to jump-starting revenue here.
|  |
 |
|
|
 |
|
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
 |
 | ||
|
||
 |
||
 |
||
|
| ||
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 |
 Make Money Online Increase Performance Leadership Challenges Of Change 3 Deadly Traps The Money Game |
|
 | ||
 |
Top 50 Social Media Blogs
Top 50 Social Media Blogs | |
 |
Guide To ERP Software
Business Management Software | |
| ||
 |
|
|
|
|
||||||||||||||||||||||||
 |
|
|
||||||||||||
