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Activation rate

Activation rate

Noun

[ack-ti-vay-shun ray-t]

An activation rate is a metric used by companies to determine when their users are achieving value. Your partner program’s activation rate is the percentage of partners that sign up for your program that gain or add value in the program. What is defined as activation can differ between programs, but it's often a first sale, first referral, or revenue achieved over a set number of months — something that indicates the partner is likely to stay profitable or engaged.

To determine your activation rate, you can take the number of partners who successfully met your activation metric, divide it by the total number of partners who joined your program, and multiply that result by 100.

Also see: Activation

Example: Soltech measured their activation rate to be 30%, which was lower than their target of 60%. They decided to revamp their partner onboarding process to better prepare their partners to sell.

More Partnership terms beginning with
A
Alliance

Noun

[ah-ly-ince]

In business, an alliance occurs between two companies that work together on mutually beneficial projects. These agreements are also called strategic alliances, and they usually involve cooperation in the development, creation, marketing, and sale of products or services or other objectives.

Alliances can either be joint ventures, equity strategic alliances, or non-equity strategic alliances. Joint ventures occur when two parent companies launch a child company together. Equity strategic alliances are created when a company purchases equity in the other. Non-equity strategic alliances are when two companies combine their resources and capabilities to reach set goals together.

Example: The well-known partnership between Starbucks and Barnes&Noble is an example of a strategic alliance. By placing Starbucks stores inside Barnes&Noble stores, each company shares the cost of the space while providing complementary services to customers.

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Ad clicks

Noun

[uhd kli-ck]

Ad clicks are an important marketing metric that measures the website traffic from a digital ad to the advertiser's website. An ad click measures user interest in that ad and the advertiser's product, with the end goal being conversion through either a sale or lead.

In general, the higher the ad clicks, the more successful the ad. Affiliate marketing, paid search and display ad campaigns rely heavily on ad clicks as a metric to determine if the program was a success. Some related terms are cost per click (CPC), which is the total cost the advertiser pays per user clickthrough.

Example: The banner display ads yielded a total of nearly 600 ad clicks to the advertiser's website over the course of the campaign, with an 8% conversion rate.

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