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Activation rate

Activation rate

Noun

[ack-ti-vay-shun ray-t]

An activation rate is a metric used by companies to determine when their users are achieving value. Your partner program’s activation rate is the percentage of partners that sign up for your program that gain or add value in the program. What is defined as activation can differ between programs, but it's often a first sale, first referral, or revenue achieved over a set number of months — something that indicates the partner is likely to stay profitable or engaged.

To determine your activation rate, you can take the number of partners who successfully met your activation metric, divide it by the total number of partners who joined your program, and multiply that result by 100.

Also see: Activation

Example: Soltech measured their activation rate to be 30%, which was lower than their target of 60%. They decided to revamp their partner onboarding process to better prepare their partners to sell.

More Partnership terms beginning with
A
Average deal size (AKA average contract value or ACV)

Noun

[ave-ridge deel sye-z]

Average deal size is a metric used by SaaS companies that represents the average amount of money that customers spend on a solution. Another way to explain it is the average amount of money a business makes per deal they close.

Average deal size can be calculated by taking the total revenue earned in a given period and dividing it by the number of closed-won opportunities during that timeframe. ACV is often calculated on a monthly or quarterly basis and used as a key performance indicator (KPI) for the business. Average deal size can be a helpful metric to use when evaluating the performance of sales teams, and it can also be used to determine the price points that are most likely to see leads convert.

Example: Luca's company closed three deals in the last month, worth $5,200, $6,700, and $7,000, respectively. He added the value of each deal up to a total of $18,900, which he divided by three to find an average deal size of $6,300.

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Affiliate partner

Noun

[ah-fill-ee-it part-nur]

Affiliate partners are partnerships that drive traffic to your properties through tracked links and earn a cut when that traffic converts. Affiliate partners are a subset of marketing partners.

An affiliate partner can be a business, an individual, or another affiliate program. Affiliate partnerships can expand your company's reach and increase revenue through increased exposure and marketing reach.

Also see: Marketing partner, affiliate link

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