An agency partner is a powerful partner, typically an agency who either send you leads or closes business on your behalf. They may also run a client's program on your software and charge them for services. Agency partnerships can increase marketing reach and earn additional referral revenue. They can help you reach new potential clients and add more value for current clients. They may also collect payments and maintain customer relationships on your behalf.
Agency partners work within the same industry between companies with aligned values and goals and they can provide significant improvement on ROI for businesses that utilize them.
Also see: Value added resellers (VARs).
Example: Louis was up to his elbows with current customers and didn't have time to source new leads, so he signed with an agency partner who found him new customers, nurtured his current relationships, and took over some marketing and payment efforts. Louis saw a positive impact on his revenue, and he decided to work even more closely with his agency partner for more efforts in the future.
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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.