Short answer: A partner or channel manager usually earns commission on revenue partners bring in, and a lower rate on deals partners helped with. In this example OTE is DKK 720,000 a year with a 65/35 pay mix. Partner-sourced new ARR pays 7% up to the quarterly quota of DKK 800,000 and 10.5% above it, and partner-influenced ARR pays 3.5%.
The example is illustrative, not a benchmark: the numbers show how the plan calculates, not what a partner manager should earn. Amounts are in Danish kroner (DKK) before pension. It is one of ten examples in commission plans by role.
Who is this plan for?
- Employed partner managers who recruit and develop resellers, referral partners or integration partners.
- Companies where partner deals are logged in the CRM, for example with a field for the partner who brought the customer.
- Sales teams where AEs close some of the partner-sourced deals.
The plan covers the employed partner manager, not the partners themselves. If a partner brokers sales of goods as an independent commercial agent, the Danish Commercial Agents Act may govern the partner's commission. As a rule the act does not cover services. See the Danish Commercial Agents Act and commission.
The plan at a glance
| Element | Example |
|---|---|
| Base salary | DKK 39,000 a month (DKK 117,000 a quarter) |
| Variable pay at 100% | DKK 63,000 a quarter: DKK 56,000 on partner-sourced and DKK 7,000 on partner-influenced ARR |
| OTE | DKK 720,000 a year |
| Pay mix | 65/35 |
| Metrics | Partner-sourced new ARR (quota DKK 800,000 a quarter). Partner-influenced new ARR (expected DKK 200,000) |
| Rate | 7% of partner-sourced ARR. 3.5% of partner-influenced ARR |
| Accelerator and threshold | 10.5% of partner-sourced ARR above quota (1.5x). A deal only counts if the partner registered it before the first customer meeting |
| Payout | Quarterly, with the salary for the month after quarter end |
| Clawback | Commission is reversed if the customer cancels or does not pay within 90 days |
Partner-sourced means the partner found the customer and registered the deal. Partner-influenced means the customer came another way, but the partner helped close it, for example with a demo or an integration. The plan must say who decides.
Worked example: 70, 100 and 130% of quota
| Quota attainment | 70% | 100% | 130% |
|---|---|---|---|
| Partner-sourced new ARR | DKK 560,000 | DKK 800,000 | DKK 1,040,000 |
| Commission, partner-sourced | DKK 39,200 | DKK 56,000 | DKK 81,200 |
| Partner-influenced new ARR | DKK 140,000 | DKK 200,000 | DKK 260,000 |
| Commission, partner-influenced (3.5%) | DKK 4,900 | DKK 7,000 | DKK 9,100 |
| Variable pay | DKK 44,100 | DKK 63,000 | DKK 90,300 |
| Base salary for the quarter | DKK 117,000 | DKK 117,000 | DKK 117,000 |
| Pay for the quarter | DKK 161,100 | DKK 180,000 | DKK 207,300 |
At 130%, partner-sourced ARR pays 7% of DKK 800,000 plus 10.5% of DKK 240,000 = DKK 56,000 + DKK 25,200 = DKK 81,200. In the example, partner-influenced ARR reaches the same percentage of its expected level.
If an AE closes the partner-sourced deal, the AE earns their normal commission as well. That is double crediting, and it is deliberate: both roles need a reason to work with the partner. Budget for it.
Pitfalls
- Arguments about who found the customer. Without a deal registration rule, every unclear case ends up with the sales manager. Require registration in the CRM before the first meeting.
- Unlimited commission on influenced deals. Anything can be called influenced. Keep the rate low and require a concrete action from the partner.
- Mixing partner commission with your own. The partner's commission is an agreement between companies. The partner manager's commission is pay. Keep them separate.
- A long road from partner to customer. New partners take time to activate. Consider a target for activated partners in year one, or a ramp period.
- Unclear crediting between roles. Use a fixed crediting rule, and see split commission if commission should be shared instead of paid twice.
Danish rules to know
Short and general, not legal advice. Check your collective agreement and employment contract, and ask your lawyer or employers' association if in doubt.
- Holiday pay on commission: The employee is entitled to compensation for commission lost because of holiday (Danish Holiday Act, ferieloven, sections 17 and 19). Partners can bring in deals while the partner manager is on holiday, so the loss may be limited. Describe the method. See holiday pay on commission.
- Sickness and parental leave: For salaried employees paid commission, pay during sickness and maternity leave must include the commission they would presumably have earned (Salaried Employees Act, funktionærloven, section 9(3)). For longer absence you can reduce the quota pro rata. See commission during sick leave.
- Bonus when someone leaves: A salaried employee who leaves during the financial year is entitled to a proportional share of profit shares, gratuities and similar payments (funktionærloven section 17 a). This plan pays quarterly commission. If you also have an annual bonus for activated partners, the rule applies to that. See commission after resignation.
- Changing the plan: A material change, such as a lower rate or a higher threshold, must be notified with the employee's individual notice period. New targets that the agreement expects to be set each period do not, as a rule, require notice. Put the change rules in your commission agreement.
- Commercial Agents Act: If the partner is an independent commercial agent brokering sales of goods, the partner has its own rights under the Danish Commercial Agents Act (handelsagentloven), for example to commission after the agreement ends. That does not affect the partner manager's pay, but it does affect your total cost. See the Danish Commercial Agents Act and commission.
How to put the plan in writing
Use the commission plan template and the commission agreement template. Write down at least:
- The definitions of partner-sourced and partner-influenced, and who decides unclear cases.
- The deal registration rule, and how long a registration is valid.
- How the commission relates to the AE's commission on the same deal.
- Clawback, and what happens if a partner stops.
Try the numbers
Work out the split between partner manager and AE in the split commission calculator, and see the accelerator in the commission accelerator calculator.
Related plans
- All ten commission plans by role
- Account executive commission plan
- Sales manager commission plan
- Key account manager commission plan
Terms and models used in this plan: split commission, crediting rule, commercial agent, accelerator.
How Prowi helps
Prowi calculates the plan live from your CRM data, reps follow their earnings in the app, and once the period is approved the amount goes on to payroll. Book a demo to see your own plan calculated.
FAQ
How do partner managers earn commission?
Usually as a percentage of the new revenue partners bring in, often with a lower rate for deals partners helped with. In the example the rates are 7% and 3.5%.
What is the difference between partner-sourced and partner-influenced?
Partner-sourced means the partner found the customer. Partner-influenced means the partner helped with a deal that came another way.
Should the AE also earn commission on partner deals?
That is common when the AE closes the deal. The deal is then credited twice, which must be in the budget.
Sources
- Danish Salaried Employees Act (funktionærloven), consolidated act no. 1002 of 24/08/2017, sections 9 and 17 a. retsinformation.dk
- Danish Holiday Act (ferieloven), consolidated act no. 152 of 20/02/2024, sections 17 and 19. retsinformation.dk
- Danish Act on Commercial Agents and Travelling Salesmen (handelsagentloven), act no. 272 of 2 May 1990, section 2. retsinformation.dk
This article is general information, not legal advice. The worked examples are illustrative.