How to better motivate the distributor’s participation in channel collaborations is an ongoing concern for manufacturers. Previous research suggests that distributor participation is influenced by two types of variables: economic incentives and dependence dynamics. This study extends past research by investigating the role of fairness in affecting participation and long-term relationships. The contingent effect of fairness is observed along varying levels of distributor dependence. On the basis of a naturally occurred program, the authors collected data from a focal manufacturer’s distribution channel. The results indicate that (1) the distributor’s fairness perception has significant impacts on both compliance and relational outcomes; (2) the efficacy of fairness reduces as the distributor’s dependence on the manufacturer increases; and (3) the effect of economic incentives is strengthened as the distributor’s dependence increases. The authors discuss the theoretical and managerial implications of the study findings.