Channel-partner incentives, collectively and imprecisely known as rebates, are huge, addictive and problematic programs for distributors.
One 2012 survey estimated total channel incentives in the U.S. to be $55 billion. That’s 80% of the reported $69 billion in total channel management budgets. A Silicon Valley survey reported the typical factory respondent ran an annual average of 21 incentive programs with an estimated overpayment of 6%.