If you sell through a channel, you might have encountered an inconvenient truth: your sales don’t move unless your indirect sellers—dealers, distributors, etc.—move them. And, unfortunately, you’re not the one in charge of their movements. It’s not always easy to influence indirect salespeople, but it can and has been done with great results. Figuring out how to motivate distributors and dealers requires a deep understanding of what they need, some innate business simpatico, and offerings that make it convenient and worthwhile to do business with you.  

Here are some proven strategies on how to motivate dealers and distributors effectively. 

How to Motivate Distributors: Understand Their Needs and Challenges 

To know exactly how to motivate dealers and distributors, you first need to understand their unique needs and challenges.  

• Conduct surveys and hold regular meetings to gather feedback.  
• Offer distributors rewards for submitting sales and customer data such as invoices and warranty registrations. 
• Hold in-person events such as incentive trips and conferences so distributors can talk to you one-on-one in a setting where they can be relaxed and candid. 

Remember that getting useful feedback is all about context. Ask distributors to talk with you frankly at a time when they’re open to doing so. Then you can better identify their pain points, areas where they need support, and opportunities for more mutually beneficial collaboration.  

Foster a Sense of Community 

Creating a sense of community among your distributors can enhance their loyalty and motivation. There are dozens of ways to connect with people, so find out what platforms your distributors are most engaged on. Channels you should look into include: 

• Social media 
• Forums 
• Facebook and LinkedIn groups 
• Conferences and seminars 
• Podcasts 
• Industry magazines  
• Reddit 

Sharing success stories, best practices, and updates about your business fosters a collaborative environment and strengthens relationships. 

Provide Training and Support 

Continuous training and support are vital for keeping your distributors motivated. Offer training programs that help them improve their skills and knowledge about your products. This can include: 

• Online courses 
• Webinars 
• In-person workshops 
• Learning management systems (LMS) 
• Training progress leaderboards 
• Training incentives 

Additionally, providing ample, easy-to-access sales enablement resources will motivate distributors to be well-versed in your brand. Put all your sales enablement assets in one place (single sign-on integrated with your corporate website is ideal) with user access permissions to ensure each distributor sees only the assets relevant to them. This will streamline the process and save everyone time. 

Rewards and Recognition Programs  

Rewards and recognition are powerful motivators. Regularly acknowledging the efforts and achievements of your distributors can boost their morale. Rewards, meanwhile, offer a little extra incentive to do the tasks that yield greater revenue and channel insights. Implement a rewards and recognition program that highlights top performers and celebrates milestones. This can be done through: 

• Rewards points redeemable in an online rewards catalog  
• Debit or gift card rewards 
• Group events such as incentive trips or conferences 
• Funds for marketing and training initiatives  
• Public recognition during events or on your company’s communication platforms 

Rewards and recognition come in many shapes, sizes, and contexts. How well a reward works depends on when and how you offer it. 

Leverage Technology 

Utilizing technology can streamline reward and recognition programs, making it easier to track and reward distributor performance. Platforms like Extu’s channel incentive solution, for example, provide robust tools for: 

• Managing multiple, simultaneous sales promotions 
• Tracking incentive performance with real-time data 
• Analyzing predictive and benchmark analytics for proactive planning 
• Enabling ongoing education with multimedia quizzes 
• Regular engagement and reward stimulation campaigns 
• Public leaderboards to create friendly competition  

These tools ensure that your programs are efficient, transparent, and engaging. 

Regularly Review and Improve Your Strategies 

Finally, regularly review the effectiveness of your motivation strategies and be open to making improvements. Gather feedback from your distributors and analyze the performance data to identify areas for enhancement. Continuous improvement ensures that your motivation strategies remain relevant and effective in driving distributor engagement and performance. The most valuable tools you can have when determining exactly how to motivate dealers and distributors: data and direct feedback. 

For in-depth details on reward program key performance indicators (KPIs) and proving the program’s success, check out our free ebook, The No-Bullsh*t Guide to a High ROI Loyalty Program for Distributors. 

Conclusion 

Figuring out how to motivate distributors is a multifaceted process that requires a deep understanding of distributor needs, effective incentives, continuous support, and the use of technology. By implementing these strategies, you can build a motivated and loyal distributor base that revs up your revenue.  

At Extu, we’re focused on helping companies create and manage successful channel incentive and marketing programs that motivate distributors. Check out our case studies to see how our programs have helped businesses increase sales by an average of 30% and earn 20:1 average ROI.