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Cost per click (CPC)

Cost per click (CPC)

Noun

[kohst pur kli-ck]

Cost per click (CPC) is an advertising revenue model used by websites wherein they bill advertisers based on the number of clicks on a display ad for their site. Advertisers usually set a daily budget for cost per click. When the budget is reached, the website is removed from the ad rotation for the rest of the day.

Most websites are paired with advertisers through a third party, such as Google Ads on Google AdSense. One of the most common ways to determine cost per click is by dividing the cost of your advertising campaign by the number of clicks. It's also common to determine cost per click by bidding, wherein you'd bid a price per click and the system uses algorithms to run your ads, charging you up to your bid amount but not more.

Cost per click is also sometimes called pay per click (PPC).

Example: A website with a cost per click of 10 cents would charge an advertiser $100 for 1000 clicks.

More Partnership terms beginning with
C
Commission structure

Noun

[ko-mish-un struk-tchur]

A commission structure is how a company compensates partners based on the revenue they generate for the business. Partner programs pay partners based on the sales they close, the traffic they drive, or the qualified leads they send to the program. The commission structure defines how much a partner is paid for those actions and how much that pay increases with increased revenue generated.

Partner programs should strive to develop a commission structure that is compelling and progressive. A compelling structure with appealing rewards can help drive interest and signups for your program, and a progressive commission structure continues to adequately reward high-performing partners for their share of revenue driven. Note that commission structure usually varies between partner types; affiliates who drive leads may earn less commission per lead, whereas resellers who have more hands-on involvement in the whole sales process usually would earn more.

Example: Reid's partner program paid affiliates 15% of the value of their leads generated and resellers 35%. His commission structure then increased the share paid for high-performing partners sending many leads and closing many sales.

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Customer relationship management (CRM)

Noun

[kuh·stuh·mr ruh·lay·shuhn·shuhp man-ij-ment]

Customer relationship management, or CRM, is a software used to build and manage communication between a company and its customers or prospective customers. It's primarily used by sales, customer success and marketing teams to improve and streamline processes including lead tracking, customer segmentation information and task management.

CRMs are used to increase sales and improve retention by shortening the sales cycle, and monitoring and following up regularly with active customers. A good CRM tool will help attract, delight and engage in order to scale your B2B SaaS business.

Example: B2B SaaS companies use CRM (customer relationship management) software in their business as a centralized place to manage  connections with customers and prospects.

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