Partnerships Glossary

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.

Partner performance metrics are key indicators used to evaluate the effectiveness and contribution of channel partners in achieving business objectives. These metrics can include sales revenue, lead generation, customer acquisition, market penetration and adherence to service level agreements.

Tracking partner performance metrics is essential for identifying high-performing partners, addressing underperformance and optimizing channel strategies. By analyzing these metrics, companies can make data-driven decisions to strengthen partnerships and drive mutual success.

Affiliate attribution refers to the process of identifying and crediting the affiliate partner responsible for driving a specific customer action, such as a lead, sign-up or sale. This process ensures that affiliates are fairly compensated for their contributions and helps businesses understand which partners are most effective.

Accurate affiliate attribution is critical for optimizing partner programs and maximizing ROI. For example, a SaaS company might use a multi-touch attribution model to determine which affiliate partner influenced a customer’s decision at each stage of the buyer’s journey.