What the research says about
channel incentives in 2026
With 50 years of expertise in sales incentive and channel loyalty programs for manufacturers and distributors, we pull the most relevant research every month and tell you what it actually means for your programs.
Curated for Channel Managers, Sales VPs & Dealer Program Owners
Using Incentives to Drive Pipeline: The IRF’s Definitive Guide to Channel Incentive Program Design, Measurement, and ROI
Co-authored by Susan Adams, 2024 IRF Board Chair and VP at Next Level Performance, this landmark study synthesizes six years of research across manufacturing, automotive, and distribution. Partners navigate 10–50 incentive programs but actively participate in only about half — and your program has to earn its place.
“Partners navigate 10–50 incentive programs and actively participate in about half. Your program has to earn its place.”
This paper is required reading for any manufacturer running a channel incentive program. The finding that lands hardest: partners are not a captive audience. A dealer with ten lines on the floor makes preference decisions constantly — your program either earns mindshare or loses it. The ROII framework (incremental gross margin per incentive dollar) is the most finance-ready model available for defending channel budgets at the executive level.
IRF 2026 Trends Report: What the Seven Shifts Mean for Channel Sales and Dealer Incentive Programs
The IRF’s 2026 trends report identifies seven forces reshaping incentive programs. For manufacturers running dealer and distributor programs, two matter more than the other five: non-cash reward performance and recognition timing. Top-performing channel organizations are pulling away from average ones on both.
“Non-cash incentives produce 3–5× the behavioral lift of equivalent cash payments in channel environments.”
The IRF’s data on non-cash reward performance is the one to put in front of any sales VP still defending a cash-only spiff strategy. A dealer rep who earns a meaningful reward talks about it, remembers it, and associates that feeling with your brand. A check absorbed into a bank account does none of those things. Program timing is equally important — rewards that arrive weeks after a sales win have almost no motivational carry-forward in a competitive multi-line environment.
State of the Global Workplace 2026: Disengaged Sales Reps Cost More Than Their Quota
Gallup’s 2026 study puts global engagement at 21% — a decade low — with direct consequences for quota attainment. Sales teams with high engagement outperform disengaged peers by 18–23% on revenue, and the primary driver isn’t compensation. It’s whether managers recognize specific behaviors, not just outcomes.
“A disengaged field rep doesn’t just miss quota — they deprioritize your line in competitive situations.”
For manufacturers with direct sales forces, Gallup’s data reframes recognition from an HR nicety to a revenue strategy. A disengaged field rep doesn’t just miss quota — they deprioritize your line in competitive situations and are significantly more likely to leave, taking their dealer relationships with them. Recognition programs that acknowledge prospecting activity and dealer training participation — not just sell-through totals — create the engagement that shows up in the numbers.
WorldatWork 2026 Sales Compensation Survey: How Top Industrial Companies Are Structuring Incentive Programs That Actually Move the Needle
WorldatWork’s 2026 survey finds 61% of organizations maintained or grew incentive budgets despite cost pressure — with manufacturing and industrial companies among the most active investors. The research draws a clear line between organizations that treat incentives as a cost to manage and those that treat them as a growth lever to optimize.
“The manufacturers protecting incentive spend have done the math on what it costs to lose a trained field rep.”
The 61% budget protection finding reflects a strategic judgment call, not just an accounting one. The manufacturers protecting incentive spend in a cost-pressure environment have done the math on what it costs to lose a trained field rep, a long-standing dealer relationship, or a distribution partner who shifts preferred status to a competitor. The math consistently favors protecting the program.
Deloitte Manufacturing Outlook: Channel Relationships Are the Margin Differentiator — and Incentive Programs Are How You Protect Them
Deloitte identifies channel relationship quality as one of the top three differentiators between high- and average-margin manufacturers. In markets where product differentiation is narrowing, the manufacturers growing share aren’t winning on price — they’re winning because their dealers advocate for their line, not just stock it.
“A distributor who stocks your product and one who advocates for it are separated by program design, not price.”
The distinction Deloitte draws between a distributor who stocks your product and one who advocates for it is the entire ROI case for channel incentive programs. A dealer with ten lines on the floor makes dozens of preference decisions every day — which product to demo first, which to recommend when a customer is undecided, and which to push when a competitive rep is in the territory. Incentive programs that recognize those advocacy behaviors — not just sell-through volume — shift that preference.
Forrester: The State of Partner Ecosystems in 2025 — Indirect Revenue Is Growing, and B2B Organizations Are Betting Bigger on Channel
Forrester’s 2025 Partner Ecosystem Marketing Survey finds that 67% of B2B organizations expect indirect revenue to grow more than 30% above prior year. Partner-influenced revenue — revenue shaped by partner advocacy before a transaction closes — is expected to follow the same trajectory.
“The channel is not a legacy sales motion. It is the primary growth vehicle.”
Forrester is writing about the scale of what is moving through partner channels and where B2B leaders expect growth to come from. The implication for channel program owners is direct: if two-thirds of your peers expect partner-driven revenue to grow more than 30% this year, the question is not whether your channel matters — it is whether your program gives your dealers a reason to prioritize your line over a competitor’s.
IRF Top Performer Study: What the Best Channel Sales Organizations Do Differently — and the 10 Practices That Separate Them
The IRF’s research across hundreds of organizations finds that 99% of top-performing companies have active C-suite support for their incentive programs — and that top performers run structurally different channel programs than average ones. They use non-cash rewards at higher rates and recognize a broader range of behaviors beyond volume.
“99% of top-performing companies have C-suite champions who publicly back their incentive programs. That’s not a correlation — it’s a prerequisite.”
Two findings stand out for manufacturing channel programs. First, the 99% C-suite support stat — which isn’t a correlation, it’s a prerequisite. Programs that live only in sales ops or HR don’t get the visibility that makes dealer partners take them seriously. Second: top-performing channel programs recognize behaviors, not just outcomes — training completion, demo activity, and new account development alongside sell-through volume.
McKinsey: How Manufacturers Can Unlock Growth Through Smarter Channel Incentive Design
McKinsey finds that channel incentive program design is one of the highest-leverage levers available to sales leaders — and one of the most under-optimized. Manufacturers that reward a broader set of behaviors beyond volume consistently see higher sell-through and stronger distributor engagement than those running volume-only rebate structures.
“Programs that only reward top-tier volume leave the majority of the channel unmotivated — and that’s where most growth lives.”
McKinsey’s finding about the majority of the channel being left unmotivated by top-tier-only programs is one of the most practically important insights in channel incentive design. If your program only rewards the dealers already selling the most volume, you’ve built a loyalty program for people who were already loyal — and left the middle tier, where most of your growth opportunity lives, with no reason to change their behavior.
SITE Incentive Travel Index 2025: Manufacturers and Distributors Lead Channel Travel Spend — and the ROI Numbers Explain Why
Manufacturers and distributors lead incentive travel program spend globally — and the ROI data explains why. SITE Global reports an average 112% program ROI, with 90.7% of non-earners still motivated by the reward in years they don’t qualify. No other reward format moves the full channel the way a well-designed trip does.
“90.7% of non-earners are still motivated by the trip in years they don’t qualify. That’s extraordinary leverage.”
The 90.7% non-earner motivation figure is the most underutilized stat in channel incentive design conversations. The trip motivates nearly every dealer in your network — including the ones who know they probably won’t qualify — simply because the aspiration is real enough. That’s extraordinary leverage for the cost of a well-designed program. If your travel program feels like a nice trip rather than a signal of status within the profession, it is not doing the job it was designed to do.
See how Next Level approaches incentive programs for your industry.
Two paths are most relevant for manufacturers and distributors channel programs.
Channel Incentives & Dealer Loyalty
Drive measurable performance through dealer and distributor networks — tied to the behaviors that build long-term channel preference, not just volume.
Group Incentive Travel
Top-performer and dealer recognition that makes your best channel partners feel genuinely chosen — from regional winners’ circles to national programs.
Global Rewards Marketplace
Choice and personalization — the differentiator in multi-line channel environments.
Internal Sales Team Recognition
Recognition infrastructure for quota-carrying teams.
Data Services & Analytics
Program activity connected to sell-through and revenue KPIs.
All Industry Trends
Research across financial services, manufacturing, and professional services.
What People Ask About Manufacturers & Distributors Incentive Programs
Questions from sales VPs, channel managers, and program owners at manufacturers and distributors — answered with the research behind them.
Most of our manufacturers and distributors clients start with a specific frustration — a dealer network that is technically active but not really engaged, a spiff that moves volume for a quarter and then stops working, or a field sales team where the top performers are loyal and everyone else is replaceable.
— Next Level Performance · 50 years in this work
We have spent 50 years designing channel incentive programs, dealer loyalty programs, and field sales recognition systems for manufacturers and distributors of every size. If something you read here maps to a challenge you are working through, that conversation costs nothing and usually goes somewhere useful.
A channel program not earning mindshare, a spiff that isn’t sticking, a field sales team where engagement dropped — pick one. That is where we start.
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