Partnerships Glossary

A channel sales strategy is a plan that outlines how a company will sell its products or services through third-party partners such as distributors, resellers or affiliates. This strategy includes defining target markets, selecting the right partners, setting performance expectations and providing the necessary support to ensure success.

A well-executed channel sales strategy is crucial for expanding market reach, reducing operational costs and driving revenue growth. It requires clear communication, alignment of goals and ongoing collaboration to ensure both the company and its partners benefit from the relationship.

A referral incentive is a commission or compensation offered to individuals, partners or customers for referring new business or clients to a company. These incentives can take the form of cash bonuses, discounts, gift cards or other perks and are designed to motivate participants to actively promote the company’s products or services.

Referral incentives are a cost-effective way to leverage existing networks (like the PartnerStack Network) and drive growth. They are particularly effective in building trust, as referrals often come from trusted sources, increasing the likelihood of conversion.

A revenue sharing model is a partnership agreement where two or more parties distribute a portion of the revenue generated from a joint effort, such as a product sale, service offering or collaborative project. This model aligns the interests of all parties by ensuring that everyone benefits from the success of the initiative.

Revenue sharing models are an effective way to incentivize partners, foster long-term collaboration and scale business growth. They are commonly used in affiliate marketing, software integrations and co-selling arrangements.