Revenue-sharing with Partners

Partner share refers to the revenue-sharing arrangement between a provider and their partners or resellers who assist in selling or distributing the product. This revenue-sharing model allows providers to leverage the sales and distribution networks of their partners to reach a wider customer base and expand their market reach.

 

When selling a product with a revenue-sharing arrangement, it’s important to reduce the Sales Price by the partner share amount so that your total revenue is accurate. In this use case, we will walk through one example where the Partner Revenue Percentage and Gross Sales Price (i.e. Sales Price equal to the Net Amount plus the Partner Amount) is known.

 

For example, let’s assume the product sold has a Gross Sales Price of $70, and the Partner Percentage is 20%. This means:

 

• Gross Sales Price is $70 (includes the Partner Amount)
• Partner Amount is $14 ($70 * 20%)
• Net Sales Price is $56 (net of the Partner Amount)

Step 1: Create the Price and Discount Tags

You can leverage Price Tag and Discount Tag for the Gross Sales Amount and Partner Amount, respectively, by following the steps below.

 

• Log into Nue App
• Navigate to PRICE BUILDER → Price Tags
• Create a new Price Tag called “Gross Sales Price” and assign a default price (e.g. $70)

 

• Next, navigate to PRICE BUILDER → Discount Tags
• Create a Discount Tag called “Partner Amount” and assign a default discount percentage (e.g. 20%)

Step 2: Apply the Revenue-Share at Quoting

In Salesforce when quoting a customer for a product with a partner revenue-share, assign the Price Tag and Discount Tag. If you want to change the price and discount, you can also edit the price or discount tags.

 

• Add the product to the quote
• Click on 💲 icon next the product

• Select Add Price Tag option → search for “Gross Sales Price” → select the tag → select Confirm option to add the tag
• If you want to change the Price, then select Edit Price Tag option → under Tiers, select Edit Tiers option → in Tier 1, enter the gross unit price in Amount field → select Save and Exit option
• Select Add Discount Tag option → search for “Partner Amount” → select the tag → select Confirm option to add the tag
• If you want to change the Partner Percentage, then select Edit Discount Tag option → under Tiers, select Edit Tiers option → in Tier 1, enter the partner percentage in Discount Percentage field → select Save and Exit option

When viewing the tags, the below fields indicate:

 

• For “Gross Sales Amount” tag,
• • Price = Gross Sales Price (per unit)
  • Total Price = Total Gross Sales Amount

• For “Partner Amount” tag,
  • Discount = Partner Percentage
  • Price Impact = Total Partner Amount
  • Total Price = Your Total Net Amount (which is Total Gross Sales Amount - Total Partner Amount)

When viewing the quote, the below fields indicate

 

• Net Sales Price = Your Sales Price (per unit)
• Total Amount = Your Total Net Amount

Step 3: Customization and Reporting

If you would like to see the Partner Amount (Discount Tag) and Gross Amount (Price Tag) on the Quote Line item, you can create Quote Line Item custom fields and a flow that copies the values from the Price Tag / Discount Tag (via Line Price Tag, Price Tag, and Price Tier objects) to these Quote Line Item custom fields. You can then report on these Objects and Fields. 

Putting it all together

Revenue-share is commonly used when doing business with partners. The amount of revenue-share can vary by product, by customer, by partner. This example includes a Gross Amount price tag, however, this is not necessary depending on your use case.