Rebate & Incentive Mechanics

How vendor rebate and incentive mechanics work. Every vendor rebate is built from the same set of parts: a type (volume, growth, target-based, attach and more), a structure (fixed, tiered, with thresholds, caps, floors, accelerators and multipliers), and rules that decide eligibility - which SKUs, which transactions, and which program period count. Understanding these mechanics is how a partner knows what they are owed, what one more order is worth, and where the next dollar of rebate actually comes from.

This cluster defines the mechanics that appear across nearly every vendor program. Use it to read your programs in one common language, then route into the tools that track them for you.

Rebate types

• Rebate (general) · Cash rebate · Back-end rebate · Front-end discount
• Volume rebate · Growth rebate · Target-based rebate · Fixed rebate · Tiered rebate
• Product rebate · Portfolio rebate · Attach rebate

Incentive types

• New logo incentive · Competitive swap incentive · Renewal incentive · Adoption incentive · Lifecycle incentive (LAER)
• Performance incentive · Partner incentive · Channel incentive · Incentive types (bonus, reward, voucher, credit memo) · SPIFF

Structure & rules

• Multiplier · Accelerator · Cap · Floor · Threshold · Quota
• Program period · Quarter-end target · Year-end target · Run rate · Shortfall · Overachievement
• Eligibility · Eligible SKU · Qualifying transaction