September 25, 2023

What Are The Three Types Of Channel Partners?

In business and marketing, the term channel refers to the distribution system of a business or company. It is also called the trading range of support and resistance on a price chart.

A channel can be categorized into two main types; the first is the distribution channel, and the second is the price channel.

The distribution channel is a system that intermediates the supply of goods and services between the producer, supplier, retailer, and the customer. It describes the way through which a product moves from the producer to the customer.

The price channel is a graphical depiction of the peaks and troughs of a product’s price over a period. It shows the range of trading between support and resistance level in which a product’s price has oscillated.

Before proceeding to types of channel partners, let’s understand who channel partners are.

A channel partner is a company or organization that partners with the producer company for marketing and selling the products, services, and technologies of that company. It is an external organization that manages and operates distribution objectives of products. Channel partners enhance B2B marketing. Hence deserve to be part of business rewards programs.

Three main types of channel partners:

The three types of channel partners are described as:

  1. Independent dealers:  This category of channel partners involves dealers and retailers that sell the products and services of a company. It is important to their business and underlying values for any loyalty program. You can give rewards to encourage these independent dealers so that they sell more of your products and services.
  1. Distributors:  These are the channel partners which companies use to distribute their products and services. They distribute products and services from the company to the warehouse, dealers, and sellers or retailers. To increase sales and promote your product and services, you should reward these distributors. Not only for promoting your products but they must also be awarded for their incredible work.
  2. Independent sales representative:  This channel partner category is composed of manufacturer sale representative, product installer, and independent sales representative. These channel partners have a stroke of products. So, to make them sell your services and products or to promote your product, you have to reward them. By rewarding them, you can make ways to promote and sell your services through them in the near future.

This is how you can understand different channel partners and their respective channel incentives. It depends on the company what kind of relationship they want to have with channel partners, and on this basis, they can decide the rewards to give them.

Channel partners and loyalty programs:

You can make an effective loyalty program for business growth and gain the loyalty of partner companies. You must consider your channel partners in your loyalty programs to boost sales and increase potential.

  • To expand the sale of your product, you must design a loyalty program that encourages channel partners to sell and recommend more of your products and services. Decide the budget and the type of channel partners you want to motivate.
  • Collect your channel partner’s data and analyse it. It can help you make strategies to manage and operate your channel partners. Obtain comprehensive data of all channel partners to reward them correctly.
  • Make a strategy to manage your channel partners, whether on a large scale or low scale. Rewarding the tried channel partners can give you better results.
  • A healthy certification of channel partners can increase your sales and add value to the brand.

You are considering your channel partners as your customers. This is what makes a B2B loyalty reward program successful.


To make better and long-term relations with channel partners, you need a deep analysis of your channel partner’s selling process. Take feedback from them as a customer. Rewarding channel partners increases sales and their work efficiency. You will get customer satisfaction.