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Commission rate

Commission rate

Noun

[ko-mish-in ray-t]

A commission rate is the reward or payment associated with either a percentage of sale or payment. In partnerships, partners can earn commission on either qualified leads or on closed sales. The commission rate is the percentage of the value of that lead or sale that is paid to the partner.

The commission rate you offer should depend on how much the partner is involved in the sale, as well as how much work they’re doing to maintain the client over time. For example, you may choose to give affiliates a commission of 15% for one year, but give resellers 30% for the lifetime of the account, because they're doing much more work to sell and maintain that account over time.

Example: Giro's partner program paid a commission rate of 25% to resellers, who did more work to close a sale, and 15% to affiliates, who did less work to produce leads.

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Cost per Thousand Impressions (CPM)

Noun

[kaast pur thau·znd uhm·preh·shnz]

Cost per thousand impressions or cost per mille (CPM) is a key metric used to determine the cost incurred for a thousand ad impressions on a web page. CPM is particularly important in display advertising, where advertisers pay for the number of times their ad is displayed to potential viewers, irrespective of whether the ad is clicked or not. The "M" in CPM represents the Roman numeral for 1,000, indicating that the cost is measured per thousand impressions.

CPM helps marketers compare the cost-effectiveness of different channels, campaigns and partnerships. It is a preferred pricing model for brand awareness campaigns, as it ensures a certain level of visibility and exposure for a fixed budget.

To calculate CPM, the  formula is: CPM = (Total Cost of Ad Campaign / Total Ad Impressions) x 1,000

By utilizing CPM, advertisers can assess the value of their online ads, evaluate their ROI, and optimize their marketing strategies for better audience targeting and increased ad performance.

Example: Ronald, a marketing manager at a B2B SaaS company, analyzed the performance of their latest marketing campaign and found that the cost per thousand impressions was notably lower compared to their previous efforts. This resulted in increased brand visibility among their target audience.

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Customer ambassador

Noun

[cuss-toe-mur am-bass-a-der]

A customer ambassador is a satisfied customer who takes on a special role helping promote the company and its offerings to their peers. Customer ambassadors have experience with the product, believe in its value, and are willing to recommend it to others. They sometimes contribute to customer case studies, webinars, and other promotional activities for the company.

Customer ambassadors are an extremely important avenue of promotion since personal endorsements and recommendations are so highly valued in a buyer's journey. To spot customer ambassadors, look for successful, highly engaged customers who refer business to you.

Example: Kelly noticed a particular customer was the referral source for several new leads. She reached out to the customer and found they loved the product. Kelly invited the customer to participate in a webinar. Voila, a customer advocate!

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