Channel sales
Noun
[chan-l seylz]
Channel sales, also known as indirect sales or partner sales, are sales facilitated through third parties instead of directly through a company’s sales team. These third parties may be agencies, influencers, or distributors. This is a common go-to-market strategy amongst B2B (business-to-business) software companies.
Channel sales is often a far more efficient system for driving revenue than direct sales, since the company doesn’t have to hire a sales team. Rather, the company only pays if and when partners make sales. Typically, partners are paid a cut of the sale, so it doesn’t require the same degree of overhead investment or risk as hiring and training an inside sales team.
That being said, to unlock maximum growth potential, many companies opt to use both direct and channel sales. Since partners will likely have access to different audiences than your sales team, it’s often worth investing in both. The programs are usually complementary as opposed to cannibalistic.
Example: Lavender Ltd. drove 30% of their revenue last year via channel sales, up from 20% the year before.
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The Ultimate Guide to Partnerships for Ecosystems in 2023
Noun
[con-tent mar-kit-ing part-nur-ship]
Content marketing partnerships are facets of strategic partnerships wherein a company works with a partner to promote through content marketing. Content marketing partnerships work to expand your reach (by exposing your brand to your partner's audience) and boost your SEO performance, both of which can positively affect brand recognition and sales. Content marketing partnerships require alignment on content strategy and should incorporate the best of each company's brand to create compelling content.
Content marketing partnerships can include sponsored content and posts or co-created content. Whether or not the content is sponsored or co-created, it should fit into the wider editorial look and feel of the company posting it.
Example: To see a real-world example of content marketing partnership, check out the collaboration between Intel and Uproxx. Intel wanted to position itself as a top choice for creatives, so they created a co-branded event with Uproxx (a culture and lifestyle magazine) wherein creators presented work they made through Intel. Both brands got to benefit from exposure to each other's audiences.
Noun
[con-vir-shin rayt]
A conversion rate is the average number of conversions per ad interaction as a percentage. Remember that a conversion is a desired goal of an ad, often a website visit or sale. Conversion rate can be found by dividing the number of conversions by the total number of ad visitors and multiplying by 100 to get a percentage.
While desirable conversion rates vary greatly by industry and business model (the average conversion rate in Google Ads is 4.40% on the search network), a high conversion rate can be indicative of a successful ad campaign.
Example: Mikaela was calculating the conversion rate of her ad campaign. There were 1100 conversions out of 35,600 total ad interactions, yielding a conversion rate of 3.09%.
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