Partner-Generated Revenue

What is partner-generated revenue?

Partner-generated revenue is the income that your business earns through indirect sales made by your channel partners. Essentially, it’s the direct money your partners bring in for you through their hard work and dedication. In the best partner ecosystems, partners act as an extension of your sales team, promoting and selling on your behalf. In return, they earn a commission or profit margin on the sales they make.

Let’s consider an example: imagine you produce high-quality organic cosmetics, and you’ve formed a partnership with a network of beauty salons. Every time one of the salons sells your products to their customers, that’s partner-generated revenue for your business.

Revenue is important, but tracking this key metric can also help you measure the success of your partner training and support efforts. If partners are generating significant revenue, it’s a good sign that your training and support are paying off. It also provides a way to identify your highest-performing partners.

Increasing your partner-generated revenue involves various strategies and actions, which typically include:

• Ensuring partners are well-trained and equipped with the knowledge and resources needed to sell and service your products effectively
• Working closely with partners to develop joint business plans and sales strategies that align your goals and create action plans to achieve revenue objectives
• Collaborating on co-marketing campaigns and lead generation efforts
• Implementing performance-based incentive programs that motivate your partners to focus on selling your products or services
• Enabling partners with tools like sales scripts, competitive analysis, and sales collateral to facilitate effective selling
• Encouraging partners to cross-sell or upsell additional products or services to existing customers
• Continuously tracking partner performance against set goals, and providing feedback to help them improve

By implementing these strategies and maintaining a strong focus on partner success, you can significantly increase partner-generated revenue and foster mutually beneficial, long-lasting partnerships.

Remember, though, that the goal of your partnerships program isn’t just to sell your products—it’s to build relationships that lead to sustained, long-term growth. And while direct partner-generated revenue is a part of that, it doesn’t account for the partner-influenced revenue or other value that partners provide your company and customers.

Related content:

How to Use Partner Data to 10x Marketing and Sales Results | 20 Channel Incentives to Power Your Partner Program | How to Create a Revenue-Focused Partner Experience | Partner Incentives | Partner-Influenced Deal