Lifetime Revenue

The total amount of revenue generated by a customer or partner throughout the entirety of the relationship. Used to measure long-term program success.
Explanation:

Lifetime Revenue is the total amount of revenue generated by a customer or partner throughout the entire duration of their relationship with your company. It includes all initial sales, renewals, upsells, cross-sells, and expansion activities.

Key components of Lifetime Revenue often include:

  • Initial Sale: Revenue earned from the first purchase or contract agreement with the customer or through the partner.
  • Renewals: Ongoing subscription fees, service contracts, or license extensions that extend the original revenue relationship.
  • Upsells and Cross-Sells: Additional revenue generated by selling more advanced solutions, additional seats, complementary products, or services.
  • Expansion Opportunities: Revenue earned as customers or partners adopt new features, expand to new teams or geographies, or integrate more deeply into the ecosystem.
  • Churn Impact: Lifetime revenue is capped when a customer or partner relationship ends, emphasizing the importance of retention strategies to maximize total value.

Lifetime Revenue is commonly used in SaaS, partner programs, and subscription-based businesses to evaluate partner impact, optimize acquisition strategies, forecast long-term growth, and justify investments in enablement and support initiatives.

Example:
Lifetime revenue per partner increased after shifting to value-based tiers and performance coaching.

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