HP reveals new rebate formula

PPS to pay out on revenue metrics and EG on certification achievements, with 40 per cent of payments coming from bespoke goals and new business rewards

HP has revealed its new formula for dishing out partner rebates, with a focus on winning new custom and achieving tailored goals in each business unit.

Changes to the rebate structure will take effect from 1 November. Across the Printing and Personal Systems unit, base compensation levels will be primarily linked to hitting revenue targets. In the more value-focused Enterprise Group, rewards will be geared to the attainment of higher levels of specialisation.

Partners will typically garner about 60 per cent of total rebates from the base comp level, claimed HP, while rewards for securing business with new accounts will account for about 10 per cent. Both these will be paid according to biannual plans.

Payments related to the achievement of bespoke goals in each business unit will comprise about 30 per cent of total rebates. These goals will be set on a quarterly basis.

Today's announcement follows yesterday's news that HP is to move to a completely linear rebate structure, with rewards paid to partners from the first dollar of sales. A quartet of compensation schemes in the Enterprise Group are also to be consolidated into one programme. These changes take effect from 1 May.