We’ve found a little secret: most successful businesses have partner tiers and partner program levels. Why? Because it helps them manage their business relationships and allocate resources in the most efficient way possible.
Each tier offers different benefits, opportunities, and resources. Knowing which tier your business falls into to take advantage of all the program offers is crucial. But to reap these rewards, you first need to understand the different tiers and levels.
Whether you’re just getting started or you’re a seasoned pro, there’s a partner program tier that’s right for you. In this blog post, we’ll dive into setting up partner tiers so you can create a system that works best for you.
What is a partner tier?
Partner management can quickly become complicated, especially with a large partner network. One way to simplify partner management is to tier your partners. This means creating different levels of partnership, with each level providing more support and incentives.
Most people are familiar with the concept of tiers. The term is often used in many contexts, including membership clubs and credit cards. But in partnership programs, the term “partner tier” usually refers to the level of participation or investment a business partner has in a company.
Partner tiers help companies keep track of their most important partners and ensure they get the most value out of the relationship. Including partner tier programs in your Partner Relationship Management (PRM) system can help you build stronger relationships with your partners and improve your overall business results.
Partner tiers aren’t created to promote the “us-versus-them” dynamic that can foster feelings of competition and resentment.
Importance of setting up partner tiers
In any relationship, it’s important to communicate your needs and expectations. But when dealing with multiple partners, you’re likely having difficulty keeping everyone on the same page. That’s why some people choose a way to make partner management easier: tier their partners.
#1: It helps to incentivize and encourages partners to develop their business with your company.
In other words, partner tiers provide a structured system in which partners can progress and ultimately achieve bigger rewards. This not only helps to develop a sense of loyalty among partners but also provides an ongoing source of motivation.
#2: It helps differentiate between different types of partnerships
Making it easier to identify and assess opportunities. As such, partner tiers play an important role in the success of any business partnership. Understanding the partner tiers can help you assess which partnerships are likely to be most beneficial for your business. It’s usually better to be partnering with high-tier partners than with low-tier ones.
So why does all this matter? Well, for one thing, it’s important to know which tier your business partners fall into when you’re negotiating deals or setting up new ventures. After all, you’ll want to make sure that everyone is on equal footing and that no one partner has too much control over the company’s direction.
For example, a solutions partner who is a minority shareholder in a company would typically be considered a lower-tier partner than a majority shareholder. The same goes for service partners who have less experience or fewer resources. Generally, the higher the tier, the more influential and powerful the partner may be within the company.
How do different partner program tiers work
By categorizing your strategic partners into different levels of importance, you can ensure that everyone knows where they stand. And contrary to popular belief, tiering your partners doesn’t have to be a negative experience. Many partner managers find that it helps to provide structure and clarity in their relationships and helps with their strategic decisions.
Your partners like to know where they fit into your partner ecosystem. By assigning them a tier, you’re giving them the clarity they crave and the validation they need. So go ahead and tell your partners that they’re your top tier, your middle tier, or your bottom tier. They’ll appreciate it more than you know.
There’s no denying that the partner program can be confusing. With three tiers — Silver, Gold, and Platinum — it’s easy to get segmented. However, each tier has its own benefits that can help partners succeed. Please use your own naming methodology – you don’t always need to use metals to categorize, but for example’s sake, we will for this article. Further, having 2 or 3 levels in your tiering program may be more appropriate – you do not always need 4 exactly. Partner tiers are usually classified and labeled into three tier levels:
First Level or Tier 1: Bronze/Silver
The first tier, bronze or silver partners, are usually new. They fall in the lower tier but still have access to a wealth of resources. This includes training materials and support from a dedicated account manager. While they may not have as much experience as the gold or platinum-level partners, they are still a valuable part of the company.
These partners will typically be in the “long tail,” meaning that the support given will be more focused on automation until they self-select into engaging more in your partner program.
Second Level or Tier 2: Gold
The second tier includes having a gold partner. Gold partners receive all of the benefits of Silver partners, plus exclusive events and early access to new products.
The idea here is to leave incremental access across each higher tier to enable the incentives for partners to work to move up tiers. Allowing partners to self-select into these based on the effort they want to give allows partner managers to allocate their time appropriately.
Third Level or Tier 3: Platinum
The next tier is platinum partners, the cream of the crop, with access to everything Gold and Silver partners receive specialized support and additional marketing opportunities.
These partners will make up most of the “performers” in your partner network. These partners will be the most engaged but may not have the resources or scale to effectively push them to the next level. They will still be amazing partners, and you will regularly work closely with them.
Fourth Level or Tier 4: Elite
In some cases, there is a top-tier partner called the elite. The elite tier could be the highest possible tier or an exclusive sub-group within the platinum tier.
If you want to move from one tier to the next, it’s not always as simple as just paying a higher fee or meeting a few additional requirements. Sometimes, it’s about making a significant contribution to the company.
These partners are the most strategic, and you will likely engage with them more deeply. They may also be involved in your business’s quarterly/annual planning to grow with them. Elite partners should have some form of a seat at the table with your executive team. They will also have the power to impact your business and partner program greatly, both through their commitment, their likely resources, and their current business size/scale.
What to determine:
Most partners are alike but have different requirements for their different tiers of partners, but there are a few key things that should be universal among all tiers:
- Size of the company
- Products or services that your partner sells
- Your partners’ performance or their record of MRR
- Customer success and deliverables
- The measure of your partners’ service quality
- Validation of skills and expertise
- What incentives to give your partners
Examples of existing partner tiers:
BD Paths’ Takeaway
When you prioritize tier documentation, you can automate your partners to advance within your partner attribution. Creating resource-intensive co-marketing campaigns with your successful partners. So take some time to search the various tiers available to you and see where your business fits best – then get ready to take advantage of all that being a customer partner has to offer!