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Long-Tail Partners

Long-Tail Partners

Noun

Long-tail partners are the roughly 80% of partners who drive about 20% of revenue. The concept of long-tail partners is related to the Pareto principle, which states that 20% of a group will generate 80% of value. The other 80% of partners, long-tail partners, drive much less value — about 20% altogether.

These partners may not be top-performing partners individually, but collectively, they represent a significant portion of your partners. While they may generate less revenue individually compared to the top-performing partners, they can make a large impact that adds up over time. They often have specialized expertise and can reach niche markets that can complement the overall partnership strategy.

Also, long-tail partners offer an opportunity for companies to diversify their revenue streams so they are not only relying on a few partners.

Engaging long-tail partners can be challenging because of the volume of partners involved. However, by automating processes, providing training resources, and offering better rewards, long-tail partners can evolve and turn into a powerful revenue-driving force.

Example:

A company specializing in accounting tools partners with a variety of independent consultants and small accounting firms. These long-tail partners may not individually bring in massive revenue, but together they drive 45% of total partner-sourced revenue.

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