Today’s competitive high-tech market relies on channel partners to build and sustain growth and reach new markets and customers. With the number of indirect channels expanding annually, there’s new exposure for CFO’s — Channel Compliance.
In a recent survey of 650 executives, 50% of all leaders and 44% of CFOs said one of their top challenges is compliance risk. For CFOs and Finance, “channel incentives are designed to boost sales by increasing loyalty and motivating channel partners to sell products. However, these are vulnerable to abuse which may cost high tech companies an estimated $1.4 billion in lost profits each year.”
How can CFO’s and channel sales leaders ensure better channel compliance? For many high tech companies, a channel compliance program may be the answer to the following questions:
- How are new business models such as revenue annuities changing the goals and roles of channel programs?
- How do we improve our financial audit trails in the channel?
- How can trusted data validate and pay partners and sales?
- How do we know channel partners are not selling to banned parties?
The objectives for channel partner compliance programs should include the following and more:
- Guidelines for channel compliance in sales, operations, finance, and cross-functional organizations
- Testing for completeness and accuracy of channel point-of-sale (POS) from partners
- Reporting and audits with an emphasis on claims submitted by channel partners
- Reviews of contractual compliance with partner agreements, programs, and terms and conditions
- Audits of channel sales transactions to ensure banned parties are not being sold too.
As a CFO or finance leader, how can you learn more about what’s needed to maintain channel compliance? Model N is introducing the Guide to Financial Channel Compliance in the Channel whitepaper.
Contact us to speak to an expert on how you can automate many aspects of channel compliance.
