PRM tools, or PRMs, are the systems that enable businesses to manage, optimize and scale all forms of partnerships.

PRM tools help businesses streamline partner engagement, increase sales through their channel network, and foster long-term, profitable partnerships.

See also: Partner Relationship Management (PRM).

A paid channel is any marketing channel where you invest money to gain access and visibility, or "pay-to-play", to reach your target audience. Compared to an organic approach where a company hopes to reach potential customers, a paid channel offers a direct route to their ideal target audience.

By paying to ensure the right message is reaching the right audience at the right time, paid channels are more effective for generating leads, driving traffic to a website, or boosting brand awareness. Usually paid channels also offer tools within their platform to easily track metrics and lead generation. However, paid channels require careful planning and budget management to make sure they maintain a positive return on investment.

The most common types of paid channels include advertising that showcases brand messaging on certain websites to content syndication that distributes your content across multiple platforms. It can also involve search engine marketing (SEM), a strategy used to increase the visibility of a website in search engine results.

Related: Marketing channels: Expand your business reach beyond Google.

A metric used by software vendors to track how many customers convert from a free trial or a “freemium model” to a paid subscription. A free trial refers to a free account that gives customers a limited-time access to try the software before it expires.

A “freemium model” gives customers unlimited access to a pared-down version of the software that reserves certain features for paid users. The end goal for both of these is to convert users into paying subscribers and track that as paid sign-ups.

To calculate paid sign-ups as a rate, divide the number of free users that converted into paying customers in a given period by the total number of free trials or “freemium model” users. Multiply this number by 100 to find the percentage rate.

Formula: Users who converted into paying customers / Free trial or “freemium model” users = Paid sign-ups rate

Some of the most common causes for struggling paid sign-up rates are value gaps in the quality of solution, user onboarding friction and not striking the right balance between giving enough away for free vs. too much.

A partner is a third-party individual, consultant, or company that collaborates with a software vendor to achieve shared business objectives. Partners are instrumental in accelerating growth and driving customer acquisition all without increasing internal headcount. They act as an extension of the company’s sales, marketing, and customer success teams, leveraging their own expertise, networks and resources to drive value for both parties.

Partners can take on various roles and responsibilities, depending on the nature of the partnership.

• Affiliate partners focus on generating leads and driving traffic to the company's website through their own marketing channels, earning commissions for successful referrals.
• Referral partners leverage their existing relationships and trust to recommend the company's products or services to their network, earning rewards for qualified leads or closed deals.
• Reseller or co-sell partners purchase the company's products or services at a discounted rate and then resell them to their own customers, adding their own value and expertise to the offering.

In addition to these common partner definitions, there are also technology partners, where companies act as a partner and integrate their software platforms to offer a more comprehensive solution.

Partner acquisition refers to growing a partner program by identifying, recruiting and onboarding new partners.

Identifying the right partners requires thorough research to ensure potential partners align with the company’s goals, understand the product value and can unlock new customer markets. Once identified, partners are then recruited and invited to apply for the program.

Successful recruitment goes beyond adding names to a roster, it’s about building trust and crafting mutually beneficial relationships. Open communication, skillful negotiation and a collaborative approach are essential to make sure everyone is on the same page and excited about the partnership.

Onboarding new partners is the next critical step that equips partners with the tools, training, and support they need to get started and start generating revenue. As partners typically work with many different companies, it’s important to actively engage new partners so they feel valued and sell the company’s solution ahead of others.

Active partner acquisition is a core component of a healthy partnership program that is more likely to thrive in the long run, adapt to market changes, and meet the evolving needs of customers.

Partner activation strategies are proactive measures and initiatives designed to transform newly recruited partners from passive participants into actively engaged collaborators within a company's ecosystem. These strategies aim to accelerate the partner's understanding of the company's products or services, speeding up education and maximizing the partnership's potential.

A thorough partner activation plan can include a variety of things that are tailored to the specific needs and goals of the partners. This may include onboarding and enablement materials, such as product guides, sales or partner playbooks and marketing collateral, to equip partners with the knowledge and resources necessary to confidently make sales.

Conducting product training workshops and webinars can also help partner understanding and proficiency, while co-marketing campaigns and joint initiatives help generate leads and create market awareness. Incentivizing initial sales or integrations through special promotions, discounts, or rewards can also motivate partners to actively engage with the company's offerings and drive early success. By implementing effective activation strategies, companies can turn partners into enthusiastic advocates for their brand and positive contributors to their partner ecosystem.

A partner advisory board (PAB) is a strategic forum where a company convenes with its most valued partners to discuss strategic initiatives related to their partnerships ecosystem. This exclusive group typically includes senior leadership from the company and top-performing partners, allowing for a high-level exchange of ideas, insights and feedback.

PAB meetings serve as a platform for thought leadership, allowing members to share industry trends, best practices, and new solutions to address common challenges. The group also engages in strategic decision-making, collaboratively shaping go-to-market strategies, product roadmaps and joint marketing campaigns. For example, a software company might invite executives from its largest resellers to join a partner advisory board to discuss market trends, develop joint go-to-market strategies, and provide feedback on new product features.

These meetings play an important role in relationship building, building trust and respect between the company and its partners. Most partner advisory boards meet a few times a year or up to once per quarter to discuss high-level strategic growth initiatives.

Partner analytics is the systematic collection, analysis and interpretation of data related to a company's partner ecosystem. This data-driven approach provides insights into the performance and impact of individual partners, partnership channels and the overall partnership program. Partner analytics help companies to make informed decisions, optimize their strategies and maximize the value derived from their partnerships.

By tracking key metrics, companies can gain a comprehensive understanding of their partner ecosystem's health and effectiveness:

• Partner activation rate: the speed at which partners become active in the program
• Time to first sale: how long it takes partners to generate revenue
• Partner engagement: the level of interaction and collaboration with partners
• Monthly new partner acquisition: the rate at which new partners join the program
• Partner-sourced revenue: the revenue generated through partner channels

Partner analytics help partnership managers to identify high-performing partners, pinpoint areas for improvement, allocate resources effectively, tailor incentives and support programs, and keep driving improvement in their partnership programs.

A partner badge is an official partner designation that partners can display on their website and in their marketing materials to officially associate themselves with a company’s partner program and brand.

Partner badges are only issued to partners who have been accepted into the partner program and passed certain requirements or been certified. A partner badge ensures that customers can validate a partner’s legitimacy in relation to the company and are powerful trust symbols.

For partners, badges can be a great tool for attracting new customers and differentiating themselves from their competition. A partner badge can also show customers that you are an expert in that particular software, enticing them to reach out to you over another partner.

For companies, a partner badge is a great way to extend brand reach and reinforce reputation. Ultimately, companies work with partners to drive them more business, so it’s important to vet and endorse partners to set them up for success.

See more: The best ways to use a learning management system (LMS).

Certifications are acknowledgements granted to partners upon achieving specific milestones, typically indicating completion of product training and qualification to represent the company as a partner. These certifications are integral to the onboarding process for partners, helping to ensure they possess sufficient knowledge about the company’s products to confidently sell, market or support them. They serve as a benchmark of proficiency and commitment to maintaining high standards in partner relationships.

The two most common types of certifications are product certifications, which demonstrate proficiency in the features and functionalities of a company's offerings and sales certifications, which validate a partner's ability to effectively market and sell those products. These certifications are essential for building trust and credibility with potential customers. Certifications may also be renewed or updated periodically, particularly after significant product updates or new releases that necessitate additional training. This ensures that partners remain current with product features, capabilities and best practices, enabling them to provide accurate information and support to customers.

Partner collaboration is a process in which two or more entities – businesses, organizations or individuals – actively work together to achieve shared business objectives. It goes beyond just a transactional relationship and fosters a deep level of engagement, communication and mutual benefit. At its core, partner collaboration involves pooling resources, expertise and knowledge to create synergistic solutions that benefit all parties involved.

Successful partner collaboration requires a strategic approach and dedicated effort from each participant. It involves clearly defining goals, establishing open lines of communication and fostering a culture of trust and transparency. By working collaboratively, partners can leverage their unique strengths and capabilities to overcome challenges, innovate faster and achieve outcomes that would be difficult to achieve alone. Partner collaboration also includes a wide range of strategic goals.

It can focus on increasing brand awareness through joint marketing campaigns, enhancing customer satisfaction and retention through coordinated support efforts, and driving innovation through shared research and development initiatives. By aligning their efforts and resources, partners can achieve a multiplier effect, amplifying their individual impact.

A partner ecosystem is a network of businesses who serve similar audiences but are not competitors and may thus benefit from collaborative marketing and sales strategies. In an ecosystem, the involved companies orchestrate all indirect distribution channels to scale and grow. For example, a marketing automation platform (MAP), a video marketing platform, and a content management system (CMS) are three businesses who target similar customers and would benefit from joining or creating a network together. 

By co-marketing and even co-selling in strategic partnerships, companies can sell more products and support happier customers who have a suite of complementary tools at their disposal. Partner ecosystems help businesses serve their customers’ needs in ways that they can’t necessarily do themselves through their own technology. Through recommending trusted products that fill functionality gaps, companies can set their customers up for greater success, and of course, greater retention and customer lifetime value (CLTV).

A partner ecosystem platform is a centralized digital framework for managing, tracking and collaborating with a company’s entire network of channel partners. These platforms streamline the complexities of managing multiple partnership channels that each include their own unique goals, partners, payouts and go-to-market initiatives.

By centralizing communication and resources, both companies and partners can improve their operational efficiency and increase their revenue.

A partner ecosystem platform enables companies and partners to:

• Track data: Monitor partner performance, track revenue metrics, and analyze data for actionable next steps.
• Streamline workflows: Automate tasks, centralize resources and simplify communication.
• Increase market reach: Use account mapping to find new customers and prospects for targeted outreach.
• Automate payments: Automate partners rewards and timely payouts for all respective channels.

Partner ecosystem platforms also integrate with other software solutions, such as CRM software and account mapping tools to provide a holistic solution for partnership management and growth. In the modern day B2B landscape, partner ecosystem platforms are essential for companies looking to fast track their partnership goals and go-to-market strategies.

Partner enablement includes a set of activities and resources designed to equip channel partners with the knowledge, skills and tools necessary to effectively promote, sell and support a company's products or services. It is a strategic investment that aims to help partners to become successful extensions of the company's sales and marketing efforts.

Partner enablement initiatives typically include a variety of educational resources, such as product training, sales playbooks, competitive battle cards and marketing collateral. These resources help partners gain a better understanding of the company's offerings, their value proposition and how to effectively position them to target customers. Additionally, partner enablement may involve providing access to sales tools, CRM systems and marketing automation platforms, streamlining processes and facilitating collaboration between the company and its partners.

Enabled partners are better equipped to identify and qualify leads, articulate the benefits of the company's products or services, and close deals effectively. This translates to increased sales, accelerated revenue growth and a stronger market presence for both the company and its partners. Partner enablement also plays a role in preventing partnership program failures, as a lack of educational resources and support can lead to frustration, disengagement, and ultimately, a breakdown of the partnership.

Partner enablement tools are a suite of technologies and resources designed to equip partners to effectively sell and deliver a partner company's products or services. These tools empower partners to increase their productivity, improve their sales performance and enhance customer satisfaction.

By providing partners with access to the latest product information, sales collateral, training materials and technical support, enablement tools help to strengthen the partner ecosystem and drive revenue growth. Common types of partner enablement tools include learning management systems (LMS), sales enablement platforms, and partner portals. Effective partner enablement is crucial for building strong, long-lasting partnerships and achieving mutual success.

Partner engagement is the process of keeping partners active participants in your program, whether that means driving traffic or submitting leads and deals. It involves creating a collaborative environment where partners feel valued, supported and empowered to contribute their unique expertise and resources.

The ultimate goal is to create a thriving ecosystem where partners are consistently motivated to drive value, whether through lead generation, sales or marketing efforts. Increasing partner engagement requires a multi-step approach to offer clear communication, ongoing support and a focus on mutual growth. It involves setting meaningful goals and KPIs, providing comprehensive training and resources, offering attractive incentives and fostering a sense of community and shared purpose among partners.

Some important partner program KPIs to focus on when improving partner engagement are monthly sales volume and signups, leads and deals. By improving partner engagement, companies can increase partner revenue, turn partners into stronger brand ambassadors, and build longer lasting partnerships.

A partner incentive is a payment that motivates  partners within a partnerships ecosystem to sell that SaaS product. Partner incentives can be commissions, revenue share or flat payments. A good partner incentive program will motivate the partner to the desired action.

Partner incentives can also be used at other stages in the journey, to motivate certain milestones, from completing training programs to sending a qualified lead. Incentives or rewards for these actions can be certifications, marketing resources, additional support and training, and more.

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A partner join source indicates the channel from which a partner discovers and applies to your program.

Partner join sources can vary widely. They might include your owned channels, such as your website, email campaigns or paid advertising. They could also be referrals from existing partners who are enthusiastic about your program. Or, they might come through a partner network, a platform that connects businesses with potential partners.

Understanding partner join sources is important for boosting recruitment efforts. By tracking which channels are the most effective at attracting partners, you can allocate your resources more efficiently and tailor the messaging for the target audience.

For finding new and effectives partner join sources, you should start by defining their ideal partner profile. Looking at criteria such as industry, location, audience, and value propositions helps to identify what partners you should be looking for.

Once you’ve narrowed down which partners would be best to work with, you can narrow down which channels they are using and target them appropriately.

The partner journey describes each step a partner goes through when learning about, joining, and earning value through a partner program. It can be likened to the buyer journey. The steps of the partner journey can be defined differently depending on the business, as can the order of certain steps. However, most partner journeys generally follow this structure:

Interest > Recruitment > Activation > Investment > Devotion

The interest stage is where a vendor gains the interest of potential partners. Recruitment involves informing potential partners of your product and offering a partnership. Activation represents the first value earned by the partner. Investment is when the partner recognizes vendor value and invests further time and capital in the relationship. Devotion occurs when partners are ready to scale with you.

Partner KPIs are the quantifiable metric used to assess the success of a B2B SaaS company's partnership programs. These metrics track various aspects of the partnership journey, providing insights into partner acquisition, engagement, performance, and satisfaction.

It's important to establish and continually track partner performance through partner KPIs to enable partners within a program with the appropriate support needed. For example, if time to first or second sale is too high, then investing in onboarding and enablement materials may be a goal for the quarter.

Related: Partner program KPI metrics you should measure and optimize.

Partner Lifecycle Management (PLM) is a strategic approach to managing the entire journey of a partnership from initial recruitment to renewal or upsell. It involves a systematic process of identifying, recruiting, onboarding, enabling, engaging and optimizing partnerships to achieve mutual business objectives.

By effectively managing the partner lifecycle, organizations can maximize the value derived from their partnerships, increase revenue and strengthen their market position. PLM helps to ensure that partners are aligned with the organization's goals, have the necessary resources and support to succeed and are consistently delivering value.

A partner manager, also sometimes called a partnerships manager or partner account manager, acts as the bridge between a company and channel partners. This role involves managing relationships with ecosystem partners and driving growth through partner-led go-to-market (GTM) initiatives.

Partner managers are responsible for a wide range of activities throughout the partner lifecycle. They identify and recruit new partners that align with the company's strategic goals, helping create a diverse and complementary partner ecosystem. Once partners are onboarded, partner managers have many skills including to provide support, including training, resources and ongoing communication, to help them to effectively promote and sell the company's products or services.

Nurturing and maintaining strong relationships with existing partners is a key aspect of the partner manager's role. This involves regular communication, performance tracking, joint business planning and addressing any challenges or concerns that may arise.

Partner managers also play a role in identifying new opportunities for collaboration, such as co-marketing campaigns, joint events, or product integrations. Ultimately, partner managers are responsible for driving revenue growth through partner channels. They work closely with partners to develop and execute effective sales and marketing strategies, track performance metrics and optimize partner performance.

A Partner Marketing Fund (PMF) is a dedicated budget allocated by a company to support joint ventures with its partners. This fund empowers partners to execute marketing activities, such as advertising campaigns, content creation, event sponsorship and lead generation programs, that align with the company's overall marketing strategy. By providing financial resources, PMFs incentivize partners to invest in marketing efforts that drive brand awareness, generate leads and ultimately increase sales.

Effectively managing a PMF requires careful planning and execution. Companies must establish clear guidelines for fund allocation, tracking and reporting. Additionally, they should work closely with partners to develop mutually beneficial marketing plans and measure the impact of these initiatives. By optimizing the use of PMFs, companies can strengthen their partner relationships, expand their market reach and accelerate revenue growth.

A partner network is a SaaS vendor's group of affiliates, referral partners, and/or reseller partners. These partners help to market and sell the vendor's product, receiving different commissions or cuts based on their partner type and agreement.

Some vendors will have only one kind of partner in their network (for example, if they only have an affiliate program), and some will run more than one kind of partnership within their network (for example, having both affiliate and referral partners). Vendors are responsible for providing their partner network with the required training, resources, certifications, and incentives required for the partners to market and sell their products.

A partner newsletter is an email newsletter regularly sent to partners. Partner newsletters are an effective way to increase partner engagement, strengthen relationships and distribute valuable information across a company’s partner network. Content may vary, but partner newsletters usually include some combination of relevant updates, product news, content, info about partner-focused events and any other partner-centric information relevant to their partner ecosystem.

Partner newsletters can be also customized to cater to the specific needs and interests of different partner segments, to make sure that the content is relevant and valuable to each recipient. By tailoring the newsletter, companies can effectively personalize their content and provide valuable resources for the right partners to help reach their goals. The frequency of partner newsletters can vary depending on the industry, target audience and the volume of relevant information to share. However, maintaining a consistent cadence, whether weekly, bi-weekly,or monthly, is important for consistency and ensuring that partners stay informed and engaged.

Partner onboarding is the process of educating and training a new partner in a partnership program to be able to perform the duties required of their participation. Partner onboarding occurs after the partner has formally agreed to join the program and the terms of the partnership have been defined and agreed upon.

While it can be run differently from program to program, it’s designed to educate, equip and empower partners to hit the ground running. It typically involves a combination of training sessions and resources covering everything from product knowledge and sales techniques to marketing strategies and platform navigation.

The objective of onboarding is to ensure that partners are fully equipped to fulfill their end of the agreement.

This may include (but isn't limited to):

• Marketing the vendor's product
• Referring leads
• Selling the vendor's product
• Advertising affiliate links

Onboarding may include certification courses so the partner can prove their knowledge of the product and platform is sufficient before proceeding with marketing or sales activities.

Related: Why partner education can make or break your partner program.

Partner personas are research-based profiles that describe each different group of partners you work with. These profiles encapsulate their characteristics, motivations and needs to help you understand what they require to be successful and active in a partner program.

Think of partner personas as a cheat sheet for recruiting new partners and building stronger, more fruitful relationships. These profiles dig deep into the specific wants and needs that drive each partner type.

By understanding their unique motivations, companies can craft targeted recruitment campaigns that attract the right partners to their program.

Personas also provide insights into continued partner engagement, helping companies understand how to tailor support, resources and incentives that keep partners excited. This personalized approach builds trust and loyalty and ultimately results in greater partner satisfaction, performance and revenue generation.

Setting aside time and resources to research partner personas is the key to building meaningful partner relationships, tailoring effective engagement strategies and developing a robust partner ecosystem.

A partner program (also called a partnership program) is a business initiative that connects companies to multiple types of partners who provide marketing support, leads and ultimately, revenue. These partners can encompass various types, including referral partners, reseller partners, affiliate partners and more.

The program's objective is to leverage the unique strengths, expertise, and resources of each participant to achieve common goals, usually focused on revenue and growth. Partner programs are designed to create a symbiotic relationship where both the company and its partners benefit from the collaboration. The company gains access to new markets, expanded reach and additional revenue streams, while partners receive access to valuable products or services, marketing support, training, and revenue sharing opportunities.

Monetary rewards are the key in a partner program to incentivize partners and ensure the success of the program. These rewards can take various forms, such as commissions, revenue shares, performance bonuses or other financial incentives. Additionally, partners may receive non-monetary benefits, such as exclusive access to products or services, co-marketing opportunities or recognition and awards for their contributions.

By establishing a well-structured and mutually beneficial partner program, companies can create a thriving ecosystem of engaged and motivated partners. This ecosystem not only drives revenue growth but also enhances brand awareness, fosters customer loyalty, and strengthens the company's competitive position in the market.

Partner Relationship Management (PRM) is the strategic framework and technological system that enables businesses to manage, optimize and scale all forms of partnerships from end-to-end.

While historically focused on resellers as the primary partner type, this view is now antiquated as modern ecosystems have evolved to include diverse partnership models — such as affiliate, referral, technology, alliance, influencer and service partners. Limiting PRM to resellers overlooks the potential of these dynamic partnerships to drive value in co-selling, co-marketing, and co-innovation.

A modern PRM integrates cross-functional collaboration, data-driven insights and seamless automation, empowering businesses to nurture and leverage a wide array of partnerships, creating a more resilient and scalable revenue engine. With a PRM, partners can remove redundant tasks in their workflows and automate them instead. By speeding up workflows, partners and partner managers save time, are more productive and ultimately contribute more to the partner ecosystem.

Partner retention is a key metric that looks at how many partners stay in a program over time.

A common job title for those responsible for building partner relationships in service of hitting company sales targets. They may or may not manage a team.

Partner Satisfaction Score (PSS) is a key metric used to measure the overall satisfaction of partners with a specific company or program. It evaluates various aspects of the partnership, including communication, support, profitability and overall experience. By regularly assessing PSS, companies can identify areas for improvement and optimize their partner programs to foster stronger, more productive relationships built on trust.

A high PSS indicates that partners are satisfied with their collaboration, perceive value in the partnership and are likely to continue working together. Conversely, a low PSS suggests potential issues that need to be addressed to maintain partner loyalty and drive business growth.

To calculate PSS, companies typically use surveys or questionnaires to gather feedback from partners. These surveys can include both quantitative and qualitative questions to gain a comprehensive understanding of partner satisfaction.

A partner specialist is a key role within a B2B SaaS company responsible for cultivating and managing relationships with external partners. They have many similar skills as a partnerships manager, and a key functional of their role is to identify, recruit and onboard partners that align with the company's strategic goals.

Partner specialists act as a liaison between the company and its partners, providing support, training and resources. Their focus is on driving mutual growth by maximizing partner potential, increasing market reach and generating revenue through joint initiatives. This role requires strong relationship-building skills, a deep understanding of the partner ecosystem and a strategic mindset.

A metric that looks at how much revenue can be directly attributed to a company's partners.

It measures the financial impact of all of a company’s partner channels (affiliate, reseller, distributor and more) and is often considered a key performance indicator in gauging the overall success of a company’s partnership strategy.

Partner-sourced revenue can be broken down into total revenue and new revenue:

• Total partner-sourced revenue: The lifetime value of partner-sourced customers, reflecting their long-term impact and the partner channel's overall financial contribution.
• New partner-sourced revenue: The revenue from a customer's first purchase through partner channels, highlighting the immediate financial impact of partner-sourced customers.

Monitoring partner-sourced revenue gives companies a holistic view of their partner ecosystem performance including partner recruitment, onboarding, training and incentives. It also enables data-driven decision making by effectively assessing high-performing partner channel strategies to further invest in and securing executive buy-in for future growth.

The PartnerStack Marketplace is the world’s largest B2B SaaS network of partners, with over 300 partner programs and over 80,000+ active partners.

The PartnerStack Marketplace connects a curated network of world-class affiliate, referral and reseller partners to companies looking to supercharge their channel partnership programs. Companies create a listing to provide potential partners with an overview of their partner program.

A company listing typically includes the company description, program commission structure, and a description of how the partner program works.

As always, an enticing offer is the best way for companies to attract the top-performing partners. Partners interested in joining the Network will need to apply and be approved first. This process helps maintain the Network quality and ensures partners can be approved by companies faster in the future.

By requiring companies to include the average earning potential partners can receive, partners in the Network can feel confident that listings are transparent and remain competitive.

A partnership agreement is the legally-binding business contract that defines the responsibilities and expectations between a vendor and their partner. It's important for clearly defining the roles of the partner, how the partnership will work and how profits are split and paid out. It can also include terms to safeguard against disputes or outline how the partnership agreement can be dissolved by each party.

Partnership agreements are an important step for program success that will set appropriate expectations for channel partners and vendors. Agreements should be updated when the terms of a partnership change, like if a partnership program expands to include a new opportunity.

Once partner agreements are in place, learn how to activate partners with our comprehensive guide to partner activation for ecosystem success.

Passive income is revenue that an individual or a company generates without actively working for it on a regular basis. Make no mistake, it can sometimes take a great deal of upfront effort to generate passive income. But once the initial lift is completed, little to no active effort is required for that revenue to keep coming in on an ongoing basis. This makes it a really attractive method of earning revenue, especially over time.

Partnerships provide companies with an opportunity to generate this kind of passive income. For example, an agency may generate revenue (very actively) by working on client projects. But if they also sell software subscriptions on behalf of vendors, and that vendor offers them 15% of the monthly recurring revenue (MRR) of customers they sold to, then the agency will receive a nice chunk of passive income each month.

Pay per action (PPA) advertising is a performance-based marketing model where advertisers pay only when a user completes a specific, pre-defined action. This action could range from subscribing to a newsletter or filling out a form to downloading an app, making a purchase or reaching a designated stage in a sales funnel.

Unlike traditional advertising models that charge for impressions or clicks, PPA focuses on tangible results, ensuring that advertisers only pay for measurable outcomes. This approach aligns the interests of both advertisers and publishers, as advertisers get more value for their money by paying only for successful conversions, while publishers are incentivized to deliver high-quality traffic and optimize their platforms for maximum user engagement.

PPA advertising offers multiple benefits, including improved ROI, increased transparency, and better control over advertising budgets. It allows advertisers to target specific actions that align with their marketing goals, such as generating leads, driving sales or increasing brand awareness. While similar to cost per click (CPC) marketing, where companies pay for each click on an ad, PPA goes beyond simple clicks to focus on more meaningful conversion events.

Payouts, also known as partner commissions, are the compensation a partner receives for generating leads and revenue. Primarily monetary, these incentives can also take the form of leads, giveaways or marketing funds, all designed to entice partners to actively drive revenue.

Payouts often follow one of three common structures:

• Revenue-sharing model: Partners are paid commissions with a percentage of the revenue generated from their referred customers.
• Flat structure model: Partners earn a fixed commissions for every successful converted customer.
• Month-to-month commissions model: Commissions are broken down and paid out to partners in regular installments over a set period, providing partners with a steady income stream.

Competitive commissions are a key differentiator that partners look to when considering joining a program. They not only attract high-performing partners, but also play a role in retaining loyalty and cultivating a thriving partner ecosystem.

Payouts are a core motivator for encouraging partners to actively champion product sales. A well crafted payout structure is a win-win situation that fosters long-term relationship building by aligning partner aspirations with company objectives.

Performance metrics are the quantifiable data that is used to assess how effectively business motions are functioning. These metrics translate complex activities into data points that enable businesses to identify areas of strength, pinpoint weaknesses and measure the impact of their efforts.

There's a wide range of metrics used, depending on the area being measured from sales, marketing, finance to customer service. By regularly monitoring and analyzing performance metrics, businesses can gain valuable insights. These insights can then be used to set benchmarks and track progress. The metrics provide a baseline for comparison and help identify areas for improvement.

Using performance metrics can also optimize business strategies and processes. Data-driven decisions that are based on metrics lead to more effective strategies. Performance metrics are also used to improve resource allocation by pinpointing areas where resources can be better utilized. Finally, they motivate and measure team performance by setting goals tied to specific metrics keeps teams accountable and engaged.

Performance metrics are a cornerstone of business success. By effectively measuring what matters, businesses can navigate challenges, capitalize on opportunities, and ultimately achieve their strategic objectives.

Performance-based marketing is a strategic approach that aligns incentives between a company and its partners. It means that partners are compensated based on the measurable results they achieve, such as generating leads, driving sales or increasing customer retention. This model fosters a win-win relationship where both the company and its partners are motivated to deliver exceptional outcomes.

Performance-based marketing can take various forms, including revenue share, where partners receive a percentage of the revenue generated from the customers they bring in; lead generation fees, where partners are paid for each qualified lead they deliver; customer acquisition costs (CAC), where partners are compensated based on the cost of acquiring new customers; and recurring revenue share, where partners receive a portion of recurring revenue from the customers they refer.

By adopting a performance-based marketing approach, B2B SaaS companies can maximize partner engagement, reduce sales costs, improve return on investment (ROI) and foster strong partner relationships.

Pipeline velocity is the speed at which leads move through the sales pipeline from initial contact to becoming end customers. It is a key metric that reflects the efficiency and overall health of the sales process.

Pipeline velocity is influenced by various factors, including lead quality, sales cycle length, deal size and the effectiveness of sales and marketing efforts. By analyzing pipeline velocity, businesses can identify bottlenecks in their sales process, improve lead nurturing strategies and accelerate the time it takes to close deals.

In the context of indirect revenue, understanding pipeline velocity is essential for evaluating the performance of partner relationships. By tracking how leads generated through partner channels move through the pipeline, businesses can assess the quality of leads provided by partners and optimize their partner programs accordingly.

Product certification programs are frameworks established by B2B SaaS companies to make sure that third-party products or integrations seamlessly and effectively work with their platform. These programs include a rigorous set of processes and standards designed to validate the compatibility, functionality, security and overall performance of external offerings. By implementing product certification programs, SaaS companies can maintain strict quality control over their ecosystem, so that customers have access to reliable and trustworthy solutions that enhance their experience.

These programs typically involve thorough testing, validation, and documentation processes to verify that third-party products meet the company's specific requirements and align with their overall vision. Product certification programs are particularly helpful for technology partnerships and integrations, as they guarantee a seamless user experience and minimize the risk of technical issues or compatibility problems.

Certified products or integrations are often promoted and recommended by the SaaS company, giving customers confidence in their reliability and performance. Additionally, these programs build trust and collaboration between the SaaS company and its technology partners. By establishing clear standards and expectations, both parties can work together to develop and deliver high-quality solutions that meet the evolving needs of customers.

Professional services, in the B2B SaaS realm, refer to specialized and customized offerings designed to help clients by implementing, optimizing and integrating the software into their business operations.

From initial consultation to ongoing support, professional service teams work closely with clients end-to-end to make sure their solution seamlessly integrates into their business.

This personalized approach takes into account the specific needs and challenges of each client to make sure the software solution drives real results.

Some examples of professional services include:

• Consulting: Providing guidance on configurations, best practices, and process optimization.
• Training: Teaching clients how to effectively use the software to its full potential.
• Customization: Adjusting the softwares features and functionalities to align with the client's specific requirements.
• Technical Support: Offering ongoing support to troubleshoot issues and answer questions.

By using professional services, clients can leverage the full potential of the software and maximize their return on investment by driving efficiency, productivity, and growth.

A program announcement is a message to partners within a B2B SaaS organization's ecosystem to update them on new program features, resources, incentives or other items related to their partnership program.

Program announcements can be communicated directly through a PRM, via email communications or through other channels, like social media, to reach a larger audience beyond current partners. These program announcements can be used to recruit new partners, or to activate current partners further. For example, an organization may release a program announcement to inform their partners about a new partner challenge.

Program scalability, in the context of partnerships, refers to a partnership program's ability to efficiently grow and handle an increasing number of partners without sacrificing effectiveness. Scalability indicates the effectiveness in handling growth without impacting the experience as more partners join a vendor's various partnership programs.

For SMB and enterprise-level businesses, this is key. Organizations need to position themselves for sustained growth to ensure trust in their SaaS product is maintained.

Prospects are potential partners or customers who exhibit interest in a partnership or product adoption. These individuals or organizations possess characteristics aligning with the partner's target market or ideal customer profile.

Prospects can be identified through various channels such as lead generation, market research, networking and referrals. Nurturing prospects involves building relationships, understanding their needs and demonstrating how a partnership or product can address their challenges and create mutual value.

A publisher refers to a company or entity that creates and distributes software applications, platforms, or content to be utilized by other businesses. Publishers in the B2B SaaS realm often collaborate with other companies to offer their software solutions as part of a larger ecosystem.