Net New Revenue

Revenue generated from customers who have never purchased from your company before, often used to evaluate partner program impact or performance bonuses.
Explanation:

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.

Example:
Their quarterly SPIFF focused on driving net new revenue from technology clients.

Learn From The Greatest Minds in Partnerships

Get advice from the greatest minds in partnerships and learn how to effectively create and scale a partner program that drives revenue.

Other glossary terms

Unlock More Partnership Terms and Definitions
Filter
Reset
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.