From carrots and sticks to sales: how to build accountable channel partnerships that deliver

Tech investor Serge van Dam shares a pragmatic framework for channel partnerships that actually perform: design both carrots (incentives) and sticks (leverage), follow a deliberate partner selection process, and set clear obligations so relationships don’t atrophy. The aim is simple, to build partnerships that take action and deliver revenue.

Key themes include:

1. Carrots and sticks: leverage is non‑negotiable
Spend as much time designing your sticks as your carrots—consequences, obligations, and ways to enforce action. “You cannot have a successful channel partnership if you do not have leverage.”

2. Start at step 1, not step 3
Don’t jump at an inbound and grant exclusivity. First, define your approach: partnership type, roles, territories, pricing, who contracts, and why customers will buy. Partnerships are hard to unwind. Write a 3–4 page ideal approach before you sign anything.

3. Pick the right partner with a formal process

Consider partner types and evaluate individuals with a weighted, desirability model. Ask the market: “If you could buy our product from anyone, who would it be?” Survey ~100 prospects/customers to guide selection.

4. Remuneration and avoiding atrophy

• Typical revenue share guidance: around 30% to the partner; higher for prosumer/lower ACV offers; ~20% at enterprise levels. Ideally, only share revenue when you get paid (billing dependent).

• Structures likely to fail: no committed minimums (revenue or customer counts by time period) lead to slow, painful atrophy.

5. Red flags to qualify early
If there’s a “let’s talk to legal first” approach, not commitment, call it out early and qualify hard.

Key takeaways:

• Design leverage: set sticks alongside carrots, including committed minimums and clear consequences.

• Write a 3–4 page channel approach before you engage: include roles, territories, pricing, contracting, customer rationale.

• Align remuneration to deal size and only share when revenue lands where possible.

Watch the full video to dive deeper into these strategies