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The Hidden Cost of Neglecting Partner Relationship Management

When companies neglect to invest in a partner management tool, they often underestimate the hidden costs that can accumulate over time. There are critical implications that businesses often overlook when they choose the path of inaction. The cost of not implementing a PRM platform to recruit new channel partners extends far beyond the immediate bottom line. Here’s how.

Missed opportunities

One of the most significant drawbacks of forgoing a centralized and automated PRM platform is the missed opportunities it entails. In a rapidly evolving market, managing partner relationships effectively is crucial for tapping into new business avenues and achieving sustained revenue growth. Without the right tools, valuable opportunities can slip through the cracks, leaving your business trailing behind more agile competitors.

Manual processes often result in delayed deal cycles, causing partners to miss sales opportunities and impacting overall revenue generation. Without proper tools, providing partners with the necessary sales resources and support becomes challenging, hindering their ability to close deals effectively.

Operational inefficiencies

Recruiting and managing new partner accounts can be a laborious and error-prone task without automation. Manual processes consume your team’s time and expose businesses to the risk of costly errors. Inefficiencies in partner onboarding and management can lead to decreased productivity, impeding your team's ability to focus on strategic initiatives that drive business success.

Manual efforts lead to increased labor costs and a higher likelihood of errors. Time spent on admin tasks could be better utilized for business development and growth.

Lack of visibility

Visibility into the progress and performance of your partners is indispensable for measuring the success of your channel program. Without a centralized PRM platform, gaining actionable insights becomes very challenging. Businesses are left in the dark, unable to make informed decisions, optimize strategies, or adapt to market changes effectively.

Furthermore, companies struggle to quantify the return on investment of their partner programs. How can you effectively implement, optimize, or update channel strategies without knowing the quantification of your indirect ROI?

Reduced engagement

Partner engagement is the lifeblood of successful channel programs. However, without the right tools, tracking and ensuring the required support for partners can be a daunting task. Building and maintaining strong relationships demands proactive engagement strategies, which are difficult to implement without the aid of a comprehensive PRM platform.

A partner management tool facilitates streamlined communication, enhancing the overall partner experience and customer satisfaction. You’ll have better opportunities to support your partners and track their performance and engagement.

Increased churn

Poorly managed partner relationships can have severe consequences, manifesting in higher churn rates and decreased loyalty. A lack of effective communication, support, and streamlined processes can lead to dissatisfaction among channel partners, driving them to seek alternative collaborations.

The result is not only a loss of revenue but also a tarnished reputation that can be challenging to repair.

The solution: Investing in PRM

In 2024, the significance of channel partner organizations is set to increase further, aligning with the upward trajectory of business conducted through the channel, meaning you cannot afford to miss out on untapped opportunities through partnerships. Considering these challenges, the solution becomes clear – investing in a robust PRM platform. Impartner's PRM solutions empower vendors to overcome these obstacles, ensuring the measurable success of their channel programs. By centralizing and automating partner relationship management, businesses can drive long-term growth, enhance productivity, and boost profitability.

The cost of doing nothing in the realm of partner relationship management is steep. Vendors must recognize the value of investing in a PRM platform to unlock their full potential, seize opportunities, and fortify their position in a competitive market. It's not just an investment; it's a strategic imperative for sustained growth and success.

About the Author

Pierre is the Sales Director, EMEA at Impartner. Pierre is an experienced channel sales leader with more than two decades of expertise in cultivating robust partner networks. Having previously made significant contributions at LANDesk, PlateSpin, Novell, WatchGuard, and currently Impartner, he has a proven track record of enhancing and expanding sales channels. Pierre has a solid technical background with a deep comprehension of the products and services he advocates, with a passion for engaging in and mastering complex sales scenarios, combined with the ability to forge and maintain trust-based relationships with partners for mutual success.

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