Channel incentives are rewards, bonuses, or other benefits provided to channel partners, such as distributors, resellers, and dealers, to motivate them to sell more products or services.  

Channel incentives may include cash bonuses, rebates, discounts, marketing support, training, or other non-monetary rewards.

The  channel incentives are used to create a mutually beneficial relationship between the manufacturer or service provider and the channel partner by aligning their interests and driving business growth. 

Channel incentives is to important as it can increase sales, improve brand loyalty, and expand market share by encouraging channel partners to promote and sell more of the manufacturer’s products or services.