Net New Revenue refers to the revenue generated from customers who have never previously purchased from your company. It captures the true growth driven by acquiring brand-new customers, either directly or through partners, and is often used as a key metric for evaluating partner program impact, setting performance bonuses, and assessing the effectiveness of sales and marketing strategies.
Key components of Net New Revenue often include:
- First-Time Customer Purchases: Revenue recognized from initial deals closed with accounts that have no previous purchase history with your company.
- Partner Attribution: Tracking which partners contributed to sourcing or closing net new customers, allowing for transparent performance evaluation and reward distribution.
- Segmentation from Expansion Revenue: Net new revenue is measured separately from upsells, cross-sells, or renewals to provide a clear view of new logo acquisition.
- Bonus and Incentive Tie-Ins: Many partner programs and sales teams structure bonuses or MDF eligibility based on net new revenue contributions to encourage growth-focused activities.
- Growth Tracking: An important KPI for assessing the scalability and market expansion success of both direct and partner-led go-to-market efforts.
Net New Revenue is vital in partner programs, direct sales strategies, and go-to-market planning for SaaS, B2B tech, and service industries. It highlights how effectively a business or its ecosystem is bringing fresh customers into the fold, essential for sustaining long-term growth.