Unit economics measures the profitability of a single business unit — whether a product, customer or partner-driven transaction — by comparing its revenue to direct costs. For partnerships, this reveals whether collaborations like affiliate programs or co-selling deals are financially sustainable. A unit could be a partner-referred customer, where revenue from their subscription is weighed against acquisition and servicing costs. For example, if a partner generates a customer worth $1,000 annually but costs $300 to onboard and support, the positive unit economics justify scaling the relationship.

Leaders must analyze metrics like customer acquisition cost (CAC) and lifetime value (LTV) to ensure partnerships drive efficiency, not just volume. A low-cost affiliate may deliver unprofitable customers if retention is poor, while a premium partner with higher CAC might yield better margins. By tracking unit economics per partner, revenue teams can allocate resources wisely, renegotiate underperforming deals and double down on high-value collaborations — turning data into scalable growth.