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Insights Executive Recruitment3 min read

Should a Commercial Director Own Pricing, Partnerships and Revenue?

Three questions decide the shape of a commercial remit: who sets price, who owns partners, and who carries the revenue number. Each can be answered differently — but each must be answered.

Channel and partner arrangements under commercial review

In short

A Commercial Director should own pricing authority within an agreed framework, and should own partner and channel arrangements as commercial agreements rather than relationships. Ownership of the revenue number depends on structure: where sales reports into the role, it should; where a Sales Director owns the function, the Commercial Director owns margin and terms while the revenue number sits with sales.

Every commercial remit is assembled from the same three components, in different proportions. Pricing authority, partner ownership and the revenue number can each sit with the Commercial Director, sit elsewhere, or be shared.

There is no universally correct combination. There is, however, a set of combinations that do not work, and they are worth knowing before the brief is written.

Pricing: authority within a framework

The strongest model gives the Commercial Director authority to set the price position and the discount framework, agreed annually with the board, and to approve exceptions within defined limits. Above those limits, escalation is explicit and rare.

ModelHow it worksOutcome
Full commercial ownershipCommercial Director sets price and governs exceptionsClear accountability; requires board confidence
Framework with thresholdsBoard agrees position; commercial approves within limitsMost common workable model in mid-sized businesses
Deal-by-deal approvalManaging Director or finance signs each significant dealSlow, and margin accountability cannot meaningfully sit with the role
Three pricing models and what they produce

The third model is not inherently wrong — some businesses run it deliberately — but it should not be combined with a job description that makes the Commercial Director accountable for margin.

Partnerships: ownership means terms, not contacts

Partner, distributor and reseller arrangements are commercial structures with margin implications, exclusivity questions, performance expectations and exit consequences. They are frequently treated as relationships instead — held personally, renewed informally and reviewed only when something goes wrong.

  • Who the business appoints, in which territory or segment, and on what basis of exclusivity.
  • The margin structure, and whether it still reflects the value each party contributes.
  • Stated performance expectations, and what happens when they are not met.
  • Review cadence, and the exit position if the arrangement stops working.

Those four items are commercial decisions. Whoever holds them holds the channel. If the answer today is 'the Managing Director, informally', transferring them is one of the clearest early deliverables for a new commercial appointment.

Revenue: it depends on the structure

This is the component that varies most legitimately. Two structures are sound.

StructureRevenue numberCommercial Director is judged on
Sales reports to Commercial DirectorCommercial DirectorRevenue and margin together
Sales Director alongside Commercial DirectorSales DirectorMargin, terms, partners, bid outcomes
Where the revenue number sits

What about bids and major deals?

Bid strategy belongs with commercial leadership in almost every structure, because it is where pricing, terms, risk and capacity meet. That means owning the qualification standard — which opportunities are worth pursuing — as much as the pricing of the submissions themselves.

A bid function that cannot decline work is an expensive proposal department. Giving the Commercial Director the authority to say no, and holding them to the quality of what is pursued, is usually more valuable than improving the documents.

Deciding the shape of your own remit

  1. 01Decide pricing first — it determines whether margin accountability is real.
  2. 02Decide partners second — it determines whether channel economics are managed or inherited.
  3. 03Decide revenue last, and let the reporting structure decide it rather than the other way round.
  4. 04Write all three into the brief, with the thresholds, before approaching anyone.

Discuss a Commercial Director requirement

Permanent, interim or fractional. The conversation starts with what the role must own — price, margin, terms and partners — rather than with a job title.

Related services

Written by

Tom Evans

International Sales & Market Development Director, Evans Sales Consultancy

Published 17 September 20263 min read

Common questions

  • Shared validation works well; shared decision-making usually does not. A common arrangement has the Commercial Director set the position and finance validate the margin impact, with the board arbitrating only on structural changes.

  • Selectively and temporarily. Holding two or three strategically significant relationships is reasonable; carrying an account list makes the role a senior salesperson and crowds out the commercial work.

  • Commercially, the Commercial Director should own the terms and the appointment decision, whether or not the search itself is run internally or supported externally.

  • Practically, yes. Accountability for a revenue number without authority over the people who generate it is the most common structural weakness we see in commercial remits.

  • By value threshold and risk profile rather than by volume. The Commercial Director should own the qualification standard and pricing position, with board involvement reserved for bids that materially change the risk the business carries.

Still working out the right approach?

If your question is specific to your company, product or target market, we can help you work through the commercial options.

Discuss your market entry

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If your business could sell more than it currently does, the fastest way to find out why is to look at the numbers together.