Incentives work. Better-designed incentives work better.

Exceptional results come from the multiple, small, often unseen decisions that make a program what it is.

Almost any sales or channel incentive program will produce some result. Offer people an attractive enough carrot and, all else being equal, at least some of them will respond. Sales may well increase and engagement may well improve.  

The real question, however, isn’t whether the program works. It’s how much better it could perform if it were designed more thoughtfully. 

A basic “hit target, get reward” program may have increased sales by 5%. But could a better designed program have achieved 8%, 15% or even 20%? Could it have engaged more partners, sustained momentum for longer, or changed the behaviours that matter most to the business? 

The difference between an average program and an exceptional one is rarely a bigger reward or a more ambitious target. More often, it lies in the dozens of small decisions that shape the program and the participant’s experience from beginning to end. 

Those decisions don’t attract attention. In incentive programs, people notice things like the launch, the rewards and, hopefully, the results. But those many small, behind-the-scenes decisions have a profound effect on the program’s success. 

They are decisions about: 

• Objectives (e.g.: Should the program reward growth, market share, or a combination of these? Should it target certain products, or all? A new product or a neglected one?) 

• Targets (e.g.: Should every partner work towards the same target, or should targets reflect different territories, business sizes or starting points?) 

• Communication (e.g.: How often should communication take place? In what form? And what should it say?) 

• Program duration (e.g. Three months, or a year, or ongoing? And why? How will momentum best be maintained?) 

• Rewards (e.g.: What are the most relevant rewards? Should they be delivered only at the end of the program, or should participants experience regular milestones along the way?) 

• Progress tracking (e.g.: Updated quarterly, monthly, or daily? And through what mechanism?) 

• Dozens of other moving parts, all of which matter. 

But looked at this way, program design can start to feel like a technical exercise. In reality, every one of those decisions is ultimately experienced by a participant. And participants don’t think in terms of mechanics.  

So, instead of asking, “have we designed the mechanics correctly?” perhaps a better way to think about good program design is to look at it from the participant’s perspective. And every participant, consciously or unconsciously, will ask these questions: 

Is this worth it? 

Every incentive program asks sales teams or channel partners to invest something. Their time. Their attention. Their effort. Sometimes even a change in long-established habits or priorities. Before they make that investment, they make a judgement. Is this worth it? 

The value of the reward plays a role, but it’s only part of the answer. 

Imagine asking a dealer to increase sales of a product range. If the objective is vague, the qualifying criteria unclear and the rewards difficult to understand, many participants will simply continue selling what they already know. The reward may be attractive, but the path towards earning it feels uncertain. 

By contrast, a well-designed program removes uncertainty. It defines the objective clearly, explains why it matters, shows participants exactly what success looks like and gives them confidence that their effort has a realistic chance of paying off. They know, for example, what products they need to increase sales of, how much by, compared to what baseline, and over what period. Clarity gives participants confidence. And with that confidence, they commit.

Can I actually succeed? 

One of the biggest design challenges is finding the balance between aspiration and attainability. If targets are too easy, there’s little sense of achievement and little reason for partners to change their behaviour. On the other hand, if the target feels impossible, many participants will quietly decide the program isn’t worth pursuing and mentally opt out before they even begin. Poorly designed programs just think about setting targets. Well-designed ones think about targeting psychology. 

Good program design also recognises that not every partner starts from the same place. An established national distributor and a new or growing regional reseller shouldn’t necessarily be judged in the same way. One may already have a significant share of the market, while the other has greater opportunity for growth. Treating them identically may feel equal, but it may not actually be fair, and it may not produce the best outcome. 

Thoughtful programs often create multiple pathways to success. They may reward percentage growth rather than absolute sales, recognise achievement across different product categories, or introduce tiered milestones that keep a broader range of participants engaged throughout the program. 

The objective isn’t to make success easy. It’s to make success feel achievable.

How am I doing? 

Imagine setting off for a long journey without any map or idea of distance. Or imagine training for a marathon without ever knowing how far you’ve run or still have to go. Most people would feel a little directionless, or struggle to stay motivated. Sales teams and channel partners are no different. People are far more likely to stay engaged when they can see how far they’ve come, how much further they have to go, and that they’re making progress.  

That’s why communication is far more than a launch announcement followed by a monthly email. Good communication becomes part of the incentive itself. It’s a dashboard that shows progress towards the next milestone, a personalised update highlighting how close a participant is to qualifying, a reminder that another product sale will unlock the next reward tier, or recognition of partners who’ve achieved important milestones along the way. 

These moments reinforce effort while there’s still time for participants to respond. Momentum is rarely sustained by rewards alone. It’s sustained by visible progress.

Can I trust this program?

Participants should be able to trust a program the same way a loyal customer trusts a purchase from her favourite brand. They need to know that things work, and that they’ll do what they’re supposed to. 

Participants need confidence that the rules are clear, progress is accurate, rewards will arrive as promised and support will be available when needed.

Consider two programs offering identical rewards. In the first, registration is confusing, claims disappear into a black hole, participants struggle to see whether their sales have been recorded correctly and reward delivery is unpredictable. In the second, registration takes minutes, progress updates are accurate, queries are resolved quickly and rewards are delivered exactly as promised. The rewards haven’t changed. The participant’s confidence has. 

When people can’t trust a program, they spend their energy questioning the program itself. When they do trust it, they can focus on achieving their goals. 

Incentives are made better by design.  

From the outside, successful channel incentive programs are often judged by their results. Higher sales, more engagement, stronger partner relationships. 

What’s less visible is the thinking that produces those results. Not one brilliant idea, one perfect reward or one clever campaign. But, rather, dozens of thoughtful design decisions that remove uncertainty, encourage participation, sustain momentum and build confidence. None of these design decisions is necessarily transformative on its own. But together, they shape how fully partners engage, how long they remain engaged and, ultimately, how much value the program creates. 

That’s the difference between a program that delivers some improvement, and one that exceeds expectations, delivering a return multiples higher. Good design doesn’t just make a program work. It makes it work better.

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