What Is Margin Leakage?

Why it matters to IT channel partners. Channel margins are thin, so even a 1–2% leak across revenue can mean a large share of annual profit lost. Most leakage is invisible by nature - you do not see the margin you quietly gave away. Rebates are one of the most recoverable sources of that leak, because the money was already earned. Close it with Rebates-On, which captures every rebate you are owed.

How it works in vendor programs. Rebate-driven margin leakage shows up when thresholds are missed by a small order, certifications lapse and drop a rebate tier, MDF and co-op funds expire unclaimed, or vendor payments arrive light and undisputed. Each is a small gap on its own; across a dozen programs and four quarters, they compound into a meaningful margin loss.

Where partners lose money. The clearest fix is the rebate side: tracking every target and deadline, claiming everything earned, and reconciling every payment. Margin leakage from rebates is one of the few profit leaks a partner can close without selling a single additional unit.

Example. A partner finishes the year $3,000 of purchasing short of a threshold worth a $24,000 rebate band. That uncollected $24,000 is pure margin leakage - and a simple alert would have prevented it.