What is a distributor rewards program?
A distributor rewards program is a structured incentive a brand pays its distributors for measurable outcomes beyond primary billing: growth over a base, verified secondary sales to retailers, new outlets billed, range sold and timely collections. Rewards are settled as credit notes, UPI, gift cards or catalogue items against a monthly statement.
How is a distributor loyalty program different from a dealer loyalty program?
Distributors are few, carry credit and coverage responsibility, and are measured on what their retailers sell, not on what they buy. A distributor loyalty program therefore rewards secondary sales, coverage and collections. A dealer loyalty program is closer to a volume slab on the dealer's own purchases and sell-out.
What software do we need to run distributor rewards?
You need a system that imports primary billing from your ERP, captures secondary sales from retailer scans or a DMS, computes slabs and bonuses, publishes a monthly statement to each distributor, pays out through UPI, credit notes or gift cards, and aggregates Section 194R values. Unotag runs all of this on one platform.
How do you prove secondary sales?
Two ways, usually combined. Retailers, that is sub-dealers, scan serialised QR codes on cartons or invoices at receipt, which ties each unit to a distributor and an outlet. Distributor DMS or Tally invoices are synced and matched against those scans. Payouts are computed on the verified value, not on self-declared numbers.
Is TDS applicable on distributor rewards?
Yes, in most cases. Section 194R of the Income-tax Act covers benefits or perquisites arising from business, including gifts, trips and gift cards, once the aggregate crosses the annual threshold. Credit notes may be treated differently. Unotag aggregates values per PAN and flags thresholds; confirm treatment with your tax advisor.
How long does it take to launch?
A sandbox mirroring your distributor list, SKUs and slab structure is ready in 48 hours. Programs across the network Unotag runs typically go live in 3 to 6 weeks, depending on how quickly ERP and DMS data mapping is signed off. Most brands start with a 90-day pilot in two or three regions.
What does a distributor rewards platform cost?
Unotag pricing is ₹30,000 to ₹3 lakh per month, set by monthly active members. A pure distributor program with 100 to 500 members sits at the lower end; enrolling retailers for scan-based secondary proof moves it up. Reward payouts and TDS are separate and funded by the brand.
