Partner-generated revenue refers to the income earned by a business through the actions or efforts of external partners rather than direct sales or services.
Example: A manufacturing company partners with a network of independent distributors to sell its products. The distributors market and sell the products to the end consumers. For every sale made, the manufacturing company earns a portion of the revenue, which is considered partner-generated revenue. This model allows the company to expand its market reach and sales capabilities without directly managing the sales process.
Understanding partner-generated revenue helps businesses develop and nurture profitable partnerships, expand market reach without proportionately increasing marketing or sales costs, and make informed strategic decisions regarding channel and partnership development.
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