Points-based programs, they’re so hot right now.
Why are they such a hot topic, you may ask? Because they can kick butt (Yes. Butt. I have five young kids, so I use five-year-old words).
Are you working with a tight budget, looking for fresh ways to motivate your partners, or desperately trying to pull your “mushy middle” (a.k.a. the underdog 80% of your partners) out of their funk? Oh, and do you need a program that can run across the globe but also needs regional flexibility? Yup, points can help.
Sounds great, right? Well - I’ve seen plenty of points programs that ended up being disasters. Overcomplicated rules, nebulous earning structures, points for activities that partners don’t care about can send them to another vendor who made it easy for them.
But have no fear. We’re going to make sure your program doesn’t turn into one of those tragedies.
To put it simply, points are a currency designed to drive behavior. They act as an exchange system that motivates participants to take desired actions and rewards them in a way that feels tangible and valuable. They can be a flexible way of rewarding the big behaviors (revenue generation) and the small behaviors (program engagement) that drive program impact towards all those strategic initiatives you have.
An activity is performed. (Think: meeting a sales target, completing a training, taking a survey, submitting a video testimonial, submitting a deal for a new high margin product, etc.) Then, they are rewarded with a corresponding amount of points. Points can then be redeemed for something of their choosing—a gift, a service, or even a resource to grow their business. They can also be the measuring stick that allows partners to jump up tiers and receive more benefits.
It’s as straightforward as it sounds. And that’s the beauty and the curse of it. They’re like Blue Steel – simple, and outrageously effective when done well.
Points based programs tap into our very human love of instant gratification and the power of small wins. When done well, we’ve seen partners in points-based programs generate 4,400% ROI. (Don’t take my word for it click here and once again make my marketing team happy). These programs leverage the "commitment bias," nudging us to keep working toward goals with the sweet reward of points, making progress feel as gratifying as a gasoline fight at a local gas station!
Top performers often steal the spotlight—and most of the rewards (as they should and still will under a points-based program). But for real, long-term success, and hit those growth goals your c-suite is pushing for you need to turn your attention to the “mushy middle,” or the bottom 80% of partners responsible for 20% of your revenue.
This group might not currently deliver the highest returns, but they hold massive untapped potential. With the right motivation and support, they could make a really, really ridiculously effective impact on your business.
These partners in the middle tier often need a push—a bit of guidance and a meaningful reason to engage more fully with your program instead of your competitors. Points-based incentive programs are one of the smartest, most budget-friendly ways to motivate this group, create engagement, and help them grow.
Here’s why points work so well for this audience:
Points programs make it possible to extend rewards across your entire roster without blowing your budget. Instead of pulling out all the stops and dollars for the Hansels of the group, you can include the “journeyman” partners who might be great fits but just need more invest to shift their mindshare.
By offering rewards tied to incremental achievements (sales milestones or training completions), you ensure that every partner—big or small—feels supported and motivated. This inclusivity not only fosters growth but keeps your program fair and relevant for all contributors.
The beauty of points is that they’re not just customizable—they’re strategic. You can direct partner behavior to align with your goals. For instance, a totally hypothetical cloud provider we’ll call Shmicrosoft could offer free licenses or goods as a redemption option so the partner can reduce operational overhead.
Other providers can push for partners to redeem for more MDF dollars, cover training expenses, better marketing support, or yes, even cash. The beauty here is that the reward provides the partner with more choice and can serve multiple purposes:
This approach goes beyond just dangling carrots—it opens pathways that amplify your business goals while delivering real, tangible value to your partners. Everybody wins.
For too long, traditional partner programs have resembled an exclusive VIP club—great for your top partners (and yes treat them well), but not exactly inviting for the “mushy middle”.
Smaller and mid-level partners often don’t meet the lofty criteria for entry, leaving them disengaged and investing in other programs they get a bigger bang for their mindshare. They also engage in the bigger ticket activities that are usually lagging indicators of a healthy partner (deal reg, revenue, training).
Points programs remove these barriers by leveling the playing field. Suddenly, the door is open for all partners to benefit based on the effort they are giving and get benefits they want, no matter their starting point. They don’t have to reach superstar status to earn rewards—they just need to make incremental progress that builds momentum.
Now, whether a partner is closing single-digit deals or working on scaling their efforts, they feel seen, valued, and motivated to do more.
Points programs don’t just reward participation—they create a roadmap for growth and partnership success. For your mushy middle, the actions that drive point collection are often directly tied to key behaviors that underpin your strategy. Maybe you want partners to:
Whatever the priority, you can bake it into your program by assigning points to those actions. The middle-tier partners now have concrete, actionable steps they understand—and can realistically achieve. This drives engagement with your program while supporting larger organizational goals.
Sometimes motivation isn’t about what you give, but how you give it. Points programs empower partners to choose rewards that actually matter to them and create memory or trophy value. Whether it’s upgrading computer systems, investing in marketing campaigns, or earning credits for customer success hours, the rewards are versatile and personal.
When the mushy middle has control, they’re more likely to stay invested—and that investment translates to deeper loyalty and stronger outcomes for your program. Contrast this to the standard program structures where the best benefits are for the top partners, and points programs emerge as the smarter, more impactful option.
This is all fine in good when you’ve hit your points program out of the park. But when done wrong? You can feel like you’re taking crazy pills and they can flop harder than an ill-fated attempt at being a coal miner.
Yes, points programs are inherently versatile and effective, but their fatal flaw is this: complexity.
The moment your points program feels more like deciphering high-fashion gibberish than a clear rewards system is the moment you’ve lost your audience. For example, a partner logs in, sees three different earning criteria for the same activity depending on region, time zone, or whether Mercury is in retrograde, and immediately checks out.
Why spend time trying to figure out a labyrinthine points system when they could focus on actual money-making activities? Spoiler alert—they won’t. Granularity may seem like a good way to target specific behaviors, but without guardrails, it backfires by turning excitement into effort, interest into irritation.
Lackluster rewards can be another big problem. Sure, everyone loves branded swag (really, people love it!) but does it push a partner toward better performance? Probably not. If your rewards don’t feel relevant, attainable, or specific to making that partner more profitable they’re nonsensical and uninspiring.
Another big pitfall? Launching a points program and then walking away like you’ve just presented the next big breakthrough in couture. Hate to break it to you, but programs need regular adjustments. Markets evolve, partner behavior shifts, and you’ll need to keep your program fresh. If you’re not monitoring participation, collecting feedback, and adjusting as you go, your points program risks becoming a relic.
Here’s the thing—your mushy middle isn’t asking for rocket science; they just want a program they can understand, access easily, and use to grow. Simplicity and clarity are your best friends here.
And no, adjusting isn’t a sign your program was flawed—it’s a sign you’re paying attention. Monitor participation metrics. Gather feedback, and don’t ignore what your mushy middle is saying.
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Here’s the reality—every points program will encounter growing pains. But the very things that can derail your program are also where its power lies when done right. If designing a simple, intuitive system paired with versatile relevant rewards can turn your mushy middle into a balanced powerhouse of engagement, why wouldn’t you?
Curious if a points program is a good fit for your goals? Let’s talk today.