Definition

deal registration

Deal registration is a common feature of vendors' channel partner programs in which a channel partner, such as a value-added reseller (VAR), informs the vendor about a sales lead. If approved by the vendor, the partner is given priority for the lead.

Vendors generally offer deal registration through a formalized program and enable partners to submit deal registration forms via a web-based channel partner portal. Some online deal registration systems offer features such as dashboards that partners can use to track the status of their registered sales leads.

Not all vendors offer deal registration, and some vendors offer it only to qualifying channel partners.

Deal registration process

The deal registration process can differ depending on the vendor and its registration guidelines. Typically, when a channel partner identifies a sales opportunity, the company completes the vendor's deal registration form and submits it for approval. The vendor then evaluates the registration application according to its guidelines. Approval times can vary. Some vendors may approve deal registration within twenty-four hours, while others may take several business days.

If the deal registration is approved, partners are granted a set period of time to close the sale, during which time the vendor's other channel partners and internal sales team are not allowed to negotiate a similar deal with that lead. The length of time a partner is granted deal protection can vary depending on the complexity of the sales cycle. In addition to deal protection, the vendor may offer partners a range of sales support to move the sales cycle forward.

After closing deals, compensation can hinge on the partner's status within the vendor's partner program. For example, in a reseller program with tiered membership levels -- i.e., silver, gold and platinum tiers -- resellers with high-ranking membership levels will likely receive higher sales margins than lower-ranking partners.

Benefits/challenges

Deal registration programs have proven to be an effective means of mitigating or managing channel conflict -- a situation in which channel partners have to compete against one another or the vendor's internal sales department. With a deal registration program in place, partners can work with a client without having to worry about another company trying to offer the same product at a lower price. Some vendors also offer to help partners in the sales cycle, and deal registration lowers the chance of the vendor poaching the lead once the partner has brought them into the discussion.

However, even with deal registration in place, a vendor may occasionally give a lead to another partner or to its internal sales team. Typically, this is done for extenuating circumstances, such as when the lead requests another partner

In addition to reducing channel conflict, vendors can benefit from deal registration by gaining increased visibility into their indirect sales pipeline as well as partner performance.

In the past, channel firms have reported that some vendors' deal registration systems can be overly complex and time-consuming to manage. In recent years, deal registration systems have generally become increasingly automated and sophisticated, easing partners' administrative burdens.

Editor's note: This definition was created in 2009 by Yuval Shavit and later updated for accuracy and readability.

This was last updated in September 2018

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