HP Is Doubling Down On Back-End Rebates
HP knows that back-end rebates are critical to partner profitability. The new PartnerOne is heavily weighted on the back-end rebate with a program that allows partners to earn those back-end rebates from the first sales dollar. That's a blockbuster change since 40 percent to 50 percent of partners did not qualify for those back-end rebates last year because they failed to meet their HP sales quotas. HP says the average partner will earn 5-10 percent more in total back-end rebates. The computer giant paid out $2.5 billion in back-end rebates to roughly 160,000 partners in the last fiscal year and plans to exceed that dollar amount this year.
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