Beyond Commissions: Exploring Cash and Non-Cash Rewards for Channel Partners


Apr 17, 2023 • 4 min read

Cash and Non-Cash Rewards

While cash rewards are a great way to recognize and incentivize the efforts of channel partners, they are not the only effective option available.

There are two primary ways for incentivizing channel partners: cash and non-cash rewards. Cash rewards include commissions or bonuses paid in cash, whereas non-cash rewards are benefits that are tied to achieving a specific target on selling the products.

By offering a range of both cash and non-cash rewards, you can provide a well-rounded B2B incentive program that caters to the diverse motivations and preferences of your channel partners.

What are Cash Rewards?

As the name suggests, cash rewards offer a monetary incentive that channel partners can easily understand and appreciate. Cash rewards can be a powerful driver for many channel partners, inspiring them to reach their target and contribute to the company's overall revenue.

There are many different types of cash incentives that businesses can offer their channel partners, such as bonuses for achieving sales targets, or cash rewards for join the training.

What are Non-cash Rewards?

In addition to cash incentives, non-cash incentives can also be a valuable tool to recognize and appreciate the partner's hard work and contribution to the company's success.

These incentives are a way for businesses to reward their channel partners without providing monetary compensation. Unlike cash incentives, non-cash rewards are not tied to a specific monetary value and can include a wide range of perks and benefits.

Some examples of non-cash incentives for channel partners include travel incentive, merchandise reward, experiences, or other perks that are tied to specific achievements, such as reaching a sales target or completing training.

These rewards can help show partners that their work is valued and appreciated, and can build loyalty and motivation to continue performing well.

Which Rewards are More Effective in Promoting Loyalty: Cash or Non-cash?

When it comes to incentivizing channel partners, businesses may assume that cash incentives are the best option. However, research has shown that non-cash incentives may actually be more effective and cost-efficient in driving desired behavior and achieving corporate goals.

Non-cash rewards were found to be 35% more effective than cash rewards at increasing sales and market share for distributors. - The Incentive Research Foundation

Let’s take a look at how these two types of rewards offer different benefits for the company as well as the channel partners.

  1. Cash rewards tend to be spent on household expenses and can become a routine income adjustment as earnings increase, while non-cash rewards can offer a more meaningful and personalized experience.
  2. Non-cash rewards, especially those that allow channel partners to choose their own incentive, can feel more personal and create a sense of ownership over the reward.
  3. Physical or status-oriented rewards, such as luxury items or experiences, have a higher trophy value than cash rewards, which are not typically celebrated or displayed in the same way.
  4. Non-cash rewards, particularly those that offer a memorable experience, have a higher recall value compared to cash rewards, which may be harder to remember as a specific achievement.
  5. Cash rewards are easier to replicate by competitors, whereas non-cash rewards that offer unique experiences or personalized incentives can be more difficult to imitate.

But, whatever rewards you choose to offer, make sure to show your appreciation and gratitude for the hard work and dedication of your distributors and other channel partners.

Wrap up!

In order to create effective and lasting partnerships with your channel partners, it's important to design a reward program that includes both cash and non-cash incentives.

This balanced mix allows you to provide engaging and memorable experiences that show your appreciation for your partners' contributions. By offering rewards that are relevant and high-impact, you can establish emotional connections that build loyalty and drive results, setting yourself apart from competitors. Ultimately, a well-designed reward program can help solidify your partnerships and contribute to long-term success.

Request Tada’s free demo to learn more how bot cash and non-cash rewards can be a game changer for your business.

New call-to-action



Content marketing specialist