Why 75% of Channel Partners Underperform — And How to Change the Game

In today’s hypercompetitive, partner-led landscape, one thing is becoming increasingly clear: channel success is lopsided. Despite the explosive growth in tech demand, nearly 75% of channel-sourced revenue is generated by just 20% of partners. Even fewer — roughly 1 in 10 — consistently achieve the revenue targets needed to unlock meaningful incentive programs.

The implications are profound. Vendors continue to invest heavily in channel ecosystems, but most of that investment is either underutilized or misaligned. So, what’s causing this underperformance? And more importantly — how can we fix it?

The Core Challenges Behind Channel Underperformance

1. Technical Talent, but No Pipeline Muscle

Most partners excel at technology delivery — whether it’s cloud migration, cybersecurity, or infrastructure management. But when it comes to demand generation, storytelling, and consistent pipeline building, many fall short. Without a solid marketing foundation, even the most capable partners struggle to grow beyond their base.

2. Partnership in Name, Not in Practice

Many partners sign up to a vendor program, list the logo on their website, and stop there. There’s little to no activity, alignment, or joint planning — leading to a wide gap between potential and performance.

3. Lack of Onboarding & Ongoing Enablement

Signing a partner is just the beginning. Without structured onboarding, strategic alignment, and regular engagement, partners quickly lose momentum or disengage entirely.

4. Misalignment of Incentives and Expectations

Too often, vendors treat partners like customers rather than collaborators. Incentive structures are complex, enablement is scattered, and expectations aren’t clearly communicated — especially to mid-tier and emerging partners.

What Can Vendors and Distributors Do Differently?

Rethink the MDF Playbook

Marketing Development Funds (MDFs) must become easier to access, deploy, and execute. Partners need ready-to-launch campaign kits, co-branded assets, and agency support if they’re to drive measurable results.
Double Down on the Middle 60%

The top 20% will perform no matter what. But the middle 60% — often overlooked — holds massive untapped potential. With proper engagement, coaching, and content support, this group could significantly lift overall channel revenue.

Enable with Data, Not Just Training

Use dashboards to show partners their progress against KPIs, benchmark them against peers, and provide real-time feedback loops. This turns partnership into a measurable, performance-driven relationship.

Create Partner Personas

Not all partners are alike. Design programs based on partner maturity, capabilities, and growth ambition. A one-size-fits-all approach dilutes impact.

The Path Forward: Smarter Partnerships, Not Just More

The truth is, the channel doesn’t need more partners — it needs better-supported, better-aligned partners. Underperformance isn’t about capability — it’s about enablement, clarity, and commitment on both sides.