How to Compensate Partner Sales Roles the Right Way

There is no such thing as a standard Partner Sales role. 🤷

A "Head of Partnerships" at one company may be the equivalent of a "Partner Development Manager" at another. Titles and responsibilities vary widely across the tech industry. That is because partnerships can mean many things: channel, alliances, co-sell, co-build, marketplace, OEM, and more.

While each company may define roles differently, it is still important to bring clarity to the core functions found in most Partner Sales teams.

Common Partner Sales Roles

Here are the most common titles you find in B2B tech:

1. Channel Account Manager (CAM) 📦 Drives revenue through Partners. Manages a portfolio of Partners (VARs, MSPs, Resellers, Distributors) and is responsible for enabling them, supporting deals, and helping them hit their sales goals.

2. Partner Sales Manager (PSM) 🤝 Drives revenue with Partners. Often supports direct sellers on partner-attached opportunities. Their job is to bring Partners into deals, run joint account mapping, and support co-sell motions.

3. Alliances Manager 🌐 Focuses on strategic relationships, often with large GSIs, ISVs, or Technology Partners. Manages the relationship, builds joint go-to-market plans, and supports co-sell or influence-based motions.

4. Partner Development Manager (PDM) 🚀 Responsible for recruiting and onboarding new Partners. May also manage existing Partners to grow their impact. This role often includes enablement, training, and business planning.

5. Partner Success Manager ✅ Focused on post-sales engagement with Partners. Ensures Partners are successful in delivering services, renewing customers, and driving adoption.

These titles are not universal. In some companies, a CAM might also be responsible for Partner recruitment. In others, an Alliances Manager might have a quota. Understanding what the role is intended to drive is more important than the title.

How to Think About Compensation for Partner Sales Roles

Designing compensation for partner-facing roles is challenging. These roles often touch multiple areas: Partner relationship, Partner enablement, pipeline development, and actual revenue generation. The right compensation plan depends on the focus of the role.

Here are a few best practices:

1. Align with Role Focus 🎯

• If the role is pipeline-focused (for example, PDM), tie compensation to number of new partners, certifications, and/or partner-sourced pipeline.

• If the role is revenue-focused (for example, CAM), base compensation on sourced or influenced revenue.

• If the role is enablement-focused (for example, Partner Success Manager), consider MBOs tied to Partner satisfaction, enablement milestones, or renewal success.

2. Consider the Right Base-to-Variable Split ⚖️

• For quota-carrying roles, 50/50 may be appropriate.

• For non-quota roles, typical ranges are 70/30 or 60/40.

• Roles with a stronger focus on enablement, operations, or strategic partnerships may lean toward 80/20 or even 90/10 splits. These structures prioritize stability and long-term relationship management over short-term revenue results.

3. Use Multiple KPIs When Needed 📊 When revenue attribution is unclear, use a weighted scorecard approach:

• Partner-sourced revenue (40%)

• Partner-influenced revenue (30%)

• Partner enablement milestones (20%)

• Strategic objectives (10%)

4. Keep It Simple and Transparent 🧭 Avoid overly complex compensation models. Partner Sales teams need to understand exactly what they are getting paid for and how it aligns with company goals.

Avoiding Conflict with Direct Sales Teams

Misaligned compensation between Direct and Partner Sales is one of the fastest ways to create internal tension. If both teams are trying to win the same deal but are paid differently (or worse, one gets paid and the other does not), the partnership motion will fail.

Some recommendations:

• Ensure shared credit or dual compensation on partner-attached deals

• Define clear rules of engagement for deal ownership

• Avoid compensation models that force Partner Managers to compete with AEs

Ultimately, Partner Sales should be a force multiplier for Direct Sales. Compensation plans should reflect collaboration, not competition.

There may never be a universal standard for Partner Sales roles, and that is okay. ✅ 

What matters is internal clarity. Define your roles by what they drive. Design compensation plans that reward the behaviors you need. Align Partner and Direct Sales teams to win together.

When partnerships work, everyone wins. 🤝