Cannibalism
Noun
[canna-bal-izm]
Cannibalism (also called product or market cannibalism) occurs when a product released by a company competes for market share with an existing product of theirs. The new product "eats" demand for the old, reducing sales and profit of their existing product. Some amount of product cannibalism is expected with new product launches, and companies normally consider the financial risks and rewards of releasing new products carefully.
Cannibalism can result in overall positive or negative effects on a company's bottom line, and can be either intentional or unintentional. When it's intentional, it's referred to as a cannibalisation strategy.
Example: Leo's team released a new file sharing software, but it soon became apparent that the demand for their other file sharing softwares was plummeting in favor of the new release. They'd caused cannibalism by putting out a product that ate up demand for their other products.
Is PRM Dead? The State of Ecosystems in 2023
Noun
[kon-tent kree-ayte-er]
A content creator is someone who makes material to be shared through any medium or digital channel. This content is often entertaining or educational, and the content is often published on social media channels, personal blogs, or websites. The content creator is responsible for the execution of the content, and may be solely or partly responsible for the ideation of the content.
Content creators are an important tool in affiliate marketing, most recognizably in B2C affiliate marketing (although they also play an important role in B2B efforts, too). Brands will pay content creators to make content about their products for their audience, often providing them with an affiliate link to drive business through.
Example: Joseph runs a YouTube channel where he reviews different cloud softwares. He often cuts down clips from his YouTube to post on TikTok, too. This makes Joseph a content creator.
Noun
[ko-mish-un struk-tchur]
A commission structure is how a company compensates partners based on the revenue they generate for the business. Partner programs pay partners based on the sales they close, the traffic they drive, or the qualified leads they send to the program. The commission structure defines how much a partner is paid for those actions and how much that pay increases with increased revenue generated.
Partner programs should strive to develop a commission structure that is compelling and progressive. A compelling structure with appealing rewards can help drive interest and signups for your program, and a progressive commission structure continues to adequately reward high-performing partners for their share of revenue driven. Note that commission structure usually varies between partner types; affiliates who drive leads may earn less commission per lead, whereas resellers who have more hands-on involvement in the whole sales process usually would earn more.
Example: Reid's partner program paid affiliates 15% of the value of their leads generated and resellers 35%. His commission structure then increased the share paid for high-performing partners sending many leads and closing many sales.
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