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Create a ROI-Driving Partner ExperiencePartner Revenue Share
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What is partner revenue share?
Partner revenue share refers to the agreed portion of revenue that a partner receives from sales they facilitate, support, or close through a vendor channel program. It is a compensation mechanism that aligns partner incentives with vendor-revenue outcomes and encourages partners to engage in selling, servicing, or upselling of the vendor’s products or services.
Key characteristics include:
- A predefined percentage of net revenue (or recurring revenue) from the partner’s deals or customer engagements.
- A clear definition of which partner actions trigger the share (for example, referral, resale, co-sell, implementation) and how long the share continues (one-time versus ongoing recurring revenue).
- Transparent tracking and attribution to ensure the correct partner receives reward based on the agreed terms and the vendor records revenue accordingly.
A well-designed partner revenue share model helps vendors scale indirect sales without increasing their direct costs, motivates partners by offering meaningful earnings, and creates trust through fairness and clarity. It is especially common in commercial software, cloud, and subscription business models where recurring revenue streams provide the opportunity for ongoing partner reward.
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