The partner brought 40 deals. You’d have won 12 of them anyway.

A channel that adds revenue can still shrink profit, and the arithmetic that decides which one you have is rarely the arithmetic anyone runs.

By Steve 5 min read
Abstract bridge artwork for The partner brought 40 deals. You’d have won 12 of them anyway.

Channel performance is almost always judged on the revenue line: deals sourced, pipeline contributed, percentage of turnover through partners. All of those numbers go up when a channel is working. The trouble is that they also go up when a channel is quietly re-routing demand you already had, at a discount you didn’t previously pay. The only question that decides whether a channel earns its keep is how much of its volume is incremental: business that would not have arrived at all without the partner. And that question is systematically…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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