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Average deal size (AKA average contract value or ACV)

Average deal size (AKA average contract value or ACV)

Noun

[ave-ridge deel sye-z]

Average deal size is a metric used by SaaS companies that represents the average amount of money that customers spend on a solution. Another way to explain it is the average amount of money a business makes per deal they close.

Average deal size can be calculated by taking the total revenue earned in a given period and dividing it by the number of closed-won opportunities during that timeframe. ACV is often calculated on a monthly or quarterly basis and used as a key performance indicator (KPI) for the business. Average deal size can be a helpful metric to use when evaluating the performance of sales teams, and it can also be used to determine the price points that are most likely to see leads convert.

Example: Luca's company closed three deals in the last month, worth $5,200, $6,700, and $7,000, respectively. He added the value of each deal up to a total of $18,900, which he divided by three to find an average deal size of $6,300.

More Partnership terms beginning with
A
Application form

Noun

[app-li-cay-shun form]

Application forms consists of a series of questions that prospective partners have to answer before joining a partner program. While the questions on an application form will change depending on the program, they generally allow you to learn about a potential partner's fit for your program, including their goals, offerings, customer profile, and values.

The information found on an application form can help inform your decision to approve or decline partners that request to join your program.

Example: Beehive filled out the application form for the referral program at TechFront, and they were happy to find out TechFront approved them for the program based on their answers.

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Affiliate partner

Noun

[ah-fill-ee-it part-nur]

Affiliate partners are partnerships that drive traffic to your properties through tracked links and earn a cut when that traffic converts. Affiliate partners are a subset of marketing partners.

An affiliate partner can be a business, an individual, or another affiliate program. Affiliate partnerships can expand your company's reach and increase revenue through increased exposure and marketing reach.

Also see: Marketing partner, affiliate link

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