Your new most useful tool: channel partner scorecards

Investing in a channel always begs the big question: What will the return be? When will we see ROI, and how can we possibly calculate it beforehand? Behold—the channel partner scorecard!

Channel partner scorecards allow you to actively manage your partner relationships, rather than simply “let them happen.” The scorecard works by compiling specific information to answer the following questions:

  • How profitable are my channel partner relationships?
  • Which partners perform most highly? Which need more work or to be released?
  • Which areas of the partnerships need more focused management effort?

Knowing the answers to these questions is the key to securing maximum ROI.  To that end, scorecards are regularly divided into four parts: (a) partner profile, (b) revenues by product, (c) costs, and (d) ROI. If you’re not sure how to create a partner profile, see “Partner profiling: It’s not a ‘data entry problem!’”

For revenues by product, you’ll want to include both forecasted and actual revenues, which will help you identify trends, manage inventory, manage cash flow, and make financial projections.

Next step is costs. Include market development funds, marketing materials, training costs, and service costs. (If some of these don’t apply or you have other categories that do, adapt this area accordingly.)

And, finally, ROI. To calculate ROI, subtract your actual cost from your actual revenue. Then divide by your actual cost and multiply the quotient by 100. To judge how positive or negative the resulting product (a percentage) is, compare it to industry averages, as well as the ROI seen in your other channel partners.

Like partner profiles, get the best use out of this tool by updating it regularly and referring to it often!


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