Partnerships Glossary
Your guide to partner program terminology and concepts. Clear definitions and explanations for all the key terms you need to know.
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What is Managed Service Provider (MSP)? A Managed Service Provider, or MSP, is a company that remotely manages a customer's IT infrastructure and/or end-user systems, typically on a proactive basis and under a subscription model. Instead of a business hiring its own IT staff, it can outsource its I
What is a Margin? In a sales context, margin refers to the difference between the price a partner sells a product for and the price they paid the vendor for it. It's the partner's profit on the sale. For example, if a reseller buys a software license from a vendor for $70 and sells it to the end cu
What are Market Development Funds (MDF)? Market Development Funds, or MDF, are funds that a vendor provides to its channel partners to help them with their local sales and marketing efforts. It's a form of co-operative marketing. A partner can apply for MDF to help pay for activities like hosting a
What is a Market Leader? A market leader is the company that has the largest market share in a particular industry. A market leader often has significant advantages, such as strong brand recognition, economies of scale, and the ability to set industry trends. Other companies in the market are often
What is Market Penetration? Market penetration is a growth strategy where a company focuses on selling more of its existing products to its existing target market. It's about increasing your market share. Tactics for market penetration can include lowering prices, increasing marketing and promotion
What is a Marketplace? An online marketplace is an e-commerce site that connects buyers and sellers, but doesn't own the inventory itself. Think of platforms like Amazon, eBay, or the Apple App Store. These marketplaces provide the infrastructure for third-party sellers (including partners) to list
What is a Master Agent? A master agent is a type of channel partner that acts as a middleman between a large group of smaller, independent sales agents and a vendor, typically in the telecommunications or cloud services industry. The master agent holds the contract with the vendor and provides the
What is a Milestone? A milestone is a specific point along a project's timeline that marks the completion of a major phase or a significant achievement. Milestones are used to break a large project down into smaller, more manageable parts. They act as checkpoints to help the project team track the
What is a Minimum Viable Product (MVP)? A Minimum Viable Product, or MVP, is a version of a new product that has just enough features to be usable by early customers, who can then provide feedback for future product development. It's the most basic version of a product you can launch to start learn
What is Monthly Recurring Revenue (MRR)? Monthly Recurring Revenue, or MRR, is a key metric for subscription-based businesses that shows the predictable and recurring revenue a company can expect to receive every month. It's the monthly equivalent of ARR. To calculate MRR, you simply add up the mo
