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Partner-Sourced Revenue

Partner-Sourced Revenue

Noun

A metric that looks at how much revenue can be directly attributed to a company's partners.

It measures the financial impact of all of a company’s partner channels (affiliate, reseller, distributor and more) and is often considered a key performance indicator in gauging the overall success of a company’s partnership strategy.

Partner-sourced revenue can be broken down into total revenue and new revenue:

  • Total partner-sourced revenue: The lifetime value of partner-sourced customers, reflecting their long-term impact and the partner channel's overall financial contribution.
  • New partner-sourced revenue: The revenue from a customer's first purchase through partner channels, highlighting the immediate financial impact of partner-sourced customers.

Monitoring partner-sourced revenue gives companies a holistic view of their partner ecosystem performance including partner recruitment, onboarding, training and incentives. It also enables data-driven decision making by effectively assessing high-performing partner channel strategies to further invest in and securing executive buy-in for future growth.

Example:

A B2B software company's partner sourced revenue analysis revealed that partners contributed a substantial 25 per cent of total revenue, with new revenue steadily climbing each quarter. This data cemented their commitment to invest further in their partnership strategies and consider new partnership channels.

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