Partner Program Tiers: The Set Up Process A-Z

Nowadays, a well-structured partner program can significantly boost your company’s growth by leveraging external relationships. One of the most effective ways to ensure the success of such a program is by implementing partner program tiers—a system that categorizes partners based on their contributions, expertise, and commitment. These tiers not only help businesses tailor rewards and support to the diverse needs of their partners but also foster a sense of loyalty, as partners are motivated to climb the ladder toward higher tiers and greater rewards.

With more than 50% of companies utilizing a tiered partner structure, it’s clear that this model is both popular and highly effective. Partner tiers provide a scalable framework that makes it easier to manage a growing partner ecosystem, offering unique benefits and resources to each partner based on their level of involvement. For example, a partner contributing through customer referrals may not require the same level of support or incentives as one actively engaged in selling and integrating your product.

Understanding how to set up these tiers is essential to ensuring the long-term success of your partner program. By defining clear goals, prerequisites, and rewards at each level, companies can create a structured pathway that allows partners to grow with them. In this article, we will explore some of the best examples of partner program tiers, demonstrating how businesses like Zendesk, Pipedrive, Aircall, and HubSpot have successfully implemented tiered systems to drive growth and enhance partner engagement.

Understanding the Need for Partner Program Tiers

Partner program tiers can be described as levels within a partner program. Each level has different requirements, benefits, and rewards. These levels take into consideration the varying skill sets, activities, and factors motivating your partners to help meet their needs. For example, the rewards associated with customer referrals on one level would be quite different from the rewards associated with another level where partners sell the product actively.

Partner tiers make it easier to give each partner a program that suits them and keeps them motivated. It also allows you to scale the program easily and grow your partner network. Today, 52% of all partner programs use partner tiers.

How to Set Up Partnership Tiers for Your Program

There is no set rule as to how program tiers can be set up. The ideal solution for your partner program depends on your goals. You can have as many levels as you like, but companies normally use 3 levels. Each level will have different prerequisites from your partner and different rewards and benefits being offered. To develop these tiers, ask yourself questions like:

• What qualifies a partner to stand at this level?
• How much training is required?
• What are the resources needed?
• What are the benefits and rewards offered?

That said, let’s take a look at a common structure. Think of this as a pyramid structure with the first level at the bottom.

First-level Partners

In this tier, you are likely to engage with the largest number of partners within your partnership network. The partners in this category do not necessarily need to possess extensive industry connections or occupy influential positions within their respective domains. Instead, their primary role within this partnership tier is to provide fundamental support by promoting and endorsing your product to potential customers.

These customers could be individuals who have already experienced the value of your offering or even notable figures and influencers within your industry. It's essential to understand that partners in this tier do not play an active role in directly selling your product to customers; rather, their contribution lies in acting as advocates and referral sources. By harnessing the reach and credibility of these partners, you can expand your product's visibility and reputation, ultimately bolstering your presence in the market.

Second-level Partners

Second-level partners represent a crucial category within your partnership ecosystem, as they are strategic partners deeply entrenched in your target audience's circles and bring substantial value to your business. Within this tier, their primary role is to serve as conduits for referrals and introductions, effectively connecting your product with potential customers who align with your target demographic. While these partners excel at making recommendations and sparking interest in your offering, they may not possess the capabilities to finalize sales transactions directly.

This tier often includes agencies, consultants, and other partners who do not directly compete with your tech company. These collaborators are valuable assets due to their specialized expertise and access to niche markets. To secure their active involvement, you may need to invest more in cultivating these relationships, as they offer a deeper level of support. In return for their services, it's common to provide them with more substantial rewards, incentivizing their continued commitment to promoting your product. This strategic partnership level plays a critical role in expanding your market reach and enhancing your brand's reputation by leveraging their industry insights and extensive networks.

Third-level Partners

Third-level partners represent the pinnacle of your partnership hierarchy, occupying a prominent position at the apex of your partner network pyramid. These partners are distinguished by their unwavering commitment to your business, investing a substantial amount of their time and effort into the active promotion and direct sales of your product, all while diligently converting leads into customers. This level of dedication and hands-on involvement in the sales process requires a significant investment in training and support from your end to equip these partners with the knowledge, skills, and resources needed to represent your product effectively.

Furthermore, third-level partners demand more substantial, personalized incentives to maintain their motivation and dedication to your brand. Recognizing their pivotal role in driving your product's success, it's essential to provide them with rewards and benefits that match the value they bring to your business. Partners such as Value-Added Resellers (VARs), systems integrators, and Managed Service Providers (MSPs) often occupy this prestigious level, as they possess the expertise and infrastructure required to not only sell your product but also seamlessly integrate it into the workflows and technology ecosystems of your target customers. Their proactive engagement and proficiency in closing deals make them invaluable allies in your quest for market dominance.

Here is an example of how you can set up the requirements, benefits, and rewards of your partner tiers:

Easing Potential Challenges

When creating partner program tiers, you must ensure that the tiers do not complicate partner management. Since every partner can have different goals, may need varying amounts of resources and training, and can be offered different rewards, you must make sure they are well-fitted to the tier. 

This is where Partner Relationship Management (PRM) tools can help. A PRM facilitates the onboarding process and helps track each partner’s progress. It also makes it easier for you to give your partners the support they need. It provides valuable insights such as partner attribution rates and partner KPIs to aid in strategic decisions for the future of your partner program.

To start with, you need to specify the requirements, goals, resources, training needs, commission, rewards, etc. for each tier. Onboard all your partners and place them in the appropriate tier. A good PRM will also let some or all of your partners access the system through a partner portal so that they are informed of the needs and objectives of their tier.  For example, leads provided by tier 1 partners may be tracked through personal referral links while those provided by tier 2 partners could be tracked through submissions on the partner portal. 

Examples of Best Partner Program Tiers

More than half of the companies that run partner programs utilize a tiered system to manage their partners effectively. These tiers are designed to recognize the varying levels of contribution, commitment, and expertise that each partner brings to the table. Let's take a closer look at some successful examples of partner program tiers from well-known companies:

Zendesk’s Partner Tiers

Zendesk operates a three-tier partner program that follows a structure similar to traditional tiered models. Partners in Tier 1 are required to meet minimal criteria, making it easy for new partners to join without needing extensive technical expertise. However, as partners move up to Tier 2 and Tier 3, the requirements become more stringent, demanding higher levels of performance and expertise.

The rewards also increase significantly at each tier. One of the standout benefits Zendesk offers to higher-tier partners is lead distribution, where the company shares qualified leads with partners most likely to close a deal. For instance, Tier 3 partners may already have an existing relationship with a lead, boosting the probability of a sale.

A PRM system plays a pivotal role here, enabling seamless lead sharing through the partner portal. This approach incentivizes partners to climb to higher tiers for more lucrative opportunities.

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Pipedrive’s Partner Tiers

Pipedrive employs a similar three-tiered system but with specific roles allocated at each level. The first tier is relatively open, allowing any individual or business interested in recommending Pipedrive to participate. The middle and top tiers, however, are reserved for more specialized partners such as consultants, Value-Added Resellers (VARs), and system integrators.

By structuring their partner tiers this way, Pipedrive ensures that partners at different levels can contribute in meaningful ways. Lower-tier partners can engage through referrals, while upper-tier partners actively manage and implement Pipedrive's solutions for clients, driving more substantial business growth.

Aircall's Partner Tiers

Aircall takes a unique approach to its partner tiers by focusing more on the partner’s role in the customer journey than on pure sales metrics. In this system, the first tier consists of partners who mainly provide leads. The second tier includes partners who take on a more active role in the sales cycle, managing deals and helping to expand business opportunities. Finally, third-tier partners are entrusted with closing deals and providing essential after-sales support.

This model ensures that partners are evaluated based on their capabilities rather than their sales volume alone. As their expertise and contributions grow, partners can advance through the tiers, enjoying increased benefits and responsibilities as they progress. This capability-based model fosters a stronger sense of loyalty, encouraging partners to upskill and expand their capabilities to reach higher tiers.

Hubspot’s Partner Tiers

HubSpot’s partner program features a five-tier structure, which is more extensive than the examples mentioned above. Partners are placed into tiers based on their total sales volume. As a partner’s sales increase and they cross specific revenue thresholds, they are automatically moved to the next tier—a process made seamless through HubSpot’s PRM software.

This automation eliminates the manual work of tracking partner progress, ensuring timely upgrades and appropriate rewards as partners achieve new milestones. In HubSpot's program, higher-tier partners gain access to additional benefits such as co-marketing opportunities, exclusive support, and increased visibility within HubSpot’s ecosystem, driving a stronger sense of loyalty and motivation.

Finding a PRM suited to your program

Creating an effective partner program requires more than just signing up partners; it demands a thoughtful approach to structuring those relationships through well-designed tiers. These tiers not only motivate partners to advance but also allow businesses to manage their partner ecosystem more efficiently, catering to different levels of engagement and capability. As we've seen from the examples of Zendesk, Pipedrive, Aircall, and HubSpot, a successful tiered program tailors rewards and support to match the partner's contribution, helping businesses grow while maintaining strong, mutually beneficial relationships.

Irrespective of how you design your tiers and how many levels you create, a PRM system is essential to streamline the process. Kiflo PRM simplifies the tier management of partners, offering a tailored solution specifically for tech startups and SMBs. From partner onboarding and lead attribution to tier management, Kiflo helps businesses easily manage their entire partner program. With Kiflo, you can focus on scaling your partner network while ensuring each partner gets the support and rewards they deserve.