HOME > GLOSSARY >
A
>
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
Affiliate program

Noun

[ah-fill-ee-it pro-gram]

An affiliate program is an organized system that enables affiliate partners to drive traffic to your properties through tracked links and earn a cut when that traffic converts. Affiliates come in many different forms and they can include influencers, content creators, publications, membership associations, and technology vendors.

In an affiliate program, an online merchant pays affiliates to send them traffic. There is a payout to the affiliate for that traffic, and then if the traffic buys the product, the affiliate receives a commission. An affiliate program is a cost-effective marketing strategy that works for both B2B and B2C brands.

Example: Lisa runs a popular software blog. Loop, a software brand, pays Lisa to place an affiliate link on her blog. When someone buys Loop's software through the link, Lisa gets a payout. Yay!

Full definition ->
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

Full definition ->

Grow bigger and better with PartnerStack

Go all in with partnerships. Demo our platform to see how you can diversify your channel and scale revenue.