Your partner dashboard shows green across the board. 87% training completion. 42 marketing campaigns executed. 200+ leads generated. High engagement scores.
But when you look at revenue, you see disappointing reality. Only 3 partners hit quota. Total partner revenue is 40% below plan. Deal velocity is slowing.
The metrics you're tracking don't predict the outcomes you care about.
This is the partner metrics trap. Most companies measure what's easy to track (activities, engagement, training completion) instead of what actually matters (pipeline created, deals closed, revenue generated).
After building partner measurement systems that accurately predicted partner performance and revenue outcomes, I've learned: you need two types of metrics—leading indicators that predict future revenue, and lagging indicators that confirm results. Most programs have only lagging indicators and wonder why they can't course-correct in time.
Here's how to measure partner success correctly.
Why Most Partner Metrics Fail
The standard partner dashboard includes:
- Number of partners enrolled
- Training completion rates
- Marketing campaigns executed
- Leads generated
- Partner satisfaction scores
- Support tickets resolved
These metrics feel productive but don't answer key questions:
- Which partners will hit quota this quarter?
- Is our partner program profitable?
- Should we invest more in partner X or cut them?
- What activities actually correlate with partner revenue?
- Are partners getting better over time or stagnating?
The problems:
Activity metrics don't predict results. Partners can complete training, register leads, and execute campaigns while generating zero revenue.
Aggregated metrics hide performance distribution. Average partner revenue looks okay, but 80% of revenue comes from 10% of partners.
Lag time makes metrics useless. You discover partners won't hit quota when it's too late to intervene.
No cost metrics. You track partner revenue but not cost to serve, making profitability impossible to calculate.
Missing quality metrics. You count deals but don't measure deal quality, win rates, or customer health.
Effective partner metrics answer: "What predicts partner success?" and "Is this partner program profitable?"
The Partner Metrics Framework
Build measurement around four metric categories:
Category 1: Capability metrics (Can they sell?)
Measures partner's ability to effectively sell your product.
Key metrics:
- Certification completion rate (% of partner reps certified)
- Demo competency score (can they deliver effective demos?)
- Competitive knowledge score (can they position vs. competitors?)
- Product knowledge assessment results
- Time to first demo (days from onboarding to first customer demo)
Why they matter: Partners who build capability early generate revenue faster.
Benchmarks:
- High-performing partners: 80%+ reps certified within 90 days
- Moderate performers: 40-60% certified
- Low performers: <20% certified
Category 2: Activity metrics (Are they trying?)
Measures partner engagement and effort level.
Key metrics:
- Deal registrations per quarter
- Demos delivered per month
- Marketing campaigns executed
- Customer-facing meetings conducted
- Portal login frequency
- Training session attendance
Why they matter: Activity level predicts pipeline generation, but only when combined with capability.
Benchmarks:
- High performers: 5+ deal registrations per quarter
- Moderate performers: 2-4 deal registrations
- Low performers: 0-1 deal registrations
Category 3: Pipeline metrics (Are they generating opportunities?)
Measures partner's effectiveness at creating and advancing deals.
Key metrics:
- Pipeline created (dollar value of opportunities)
- Pipeline conversion rate (opportunities → closed won)
- Average deal size
- Sales cycle length
- Win rate (won deals / total closed deals)
- Pipeline velocity (how fast deals move through stages)
Why they matter: These are leading indicators of revenue. Pipeline today predicts revenue next quarter.
Benchmarks:
- Healthy partner: $200K+ active pipeline per quarter
- Pipeline conversion rate: 20-30%
- Win rate: 40-60% (should exceed direct sales win rate)
Category 4: Revenue metrics (Are they delivering results?)
Measures actual business outcomes.
Key metrics:
- Closed revenue (this quarter, this year, trailing 12 months)
- Revenue vs. quota attainment (% of quota achieved)
- Revenue growth rate (quarter-over-quarter, year-over-year)
- Customer retention rate (are partner-sourced customers renewing?)
- Expansion revenue (upsells/cross-sells from existing partner customers)
- Customer lifetime value (partner-sourced vs. direct)
Why they matter: Ultimate measure of partner program success.
Benchmarks:
- High performers: 100%+ quota attainment, consistent growth
- Moderate performers: 60-100% quota attainment
- Low performers: <60% quota attainment
The Partner Scorecard
Create a simple scorecard combining all four categories:
Example partner scorecard:
Partner: ABC Solutions
Capability (25 points possible)
- Certified reps: 6/10 (12/15 points)
- Demo competency: Proficient (7/10 points)
- Total: 19/25
Activity (25 points possible)
- Deal registrations: 8 this quarter (20/25 points)
- Marketing campaigns: 2 executed (5/10 points)
- Total: 22/25
Pipeline (25 points possible)
- Active pipeline: $450K (20/25 points)
- Win rate: 58% (5/5 points)
- Total: 25/25
Revenue (25 points possible)
- Quarterly revenue: $180K vs. $200K quota (18/20 points)
- YoY growth: 35% (5/5 points)
- Total: 23/25
Overall score: 89/100 (Premier tier)
Scorecard makes partner health visible at a glance.
The Leading Indicator Metrics
The most valuable metrics predict future performance 1-2 quarters out.
Leading indicator 1: Deal registration velocity
How many deals are partners registering month-over-month?
Why it predicts: Deal registrations today become closed revenue 60-90 days from now.
Green flag: Increasing registration trend Yellow flag: Flat registration trend Red flag: Declining registrations (predicts revenue miss)
Leading indicator 2: Demo-to-opportunity conversion rate
What % of partner demos convert to qualified opportunities?
Why it predicts: Improving conversion means partner is getting better at qualifying and selling. Declining conversion means capability or targeting problems.
Benchmark: 30-40% demo-to-opportunity conversion
Leading indicator 3: Time to first deal
How quickly are new partners closing their first deal?
Why it predicts: Partners who close deals quickly are more likely to become high performers. Partners who take >6 months often never generate meaningful revenue.
Benchmark: First deal within 90 days
Leading indicator 4: Pipeline coverage ratio
Pipeline value divided by quarterly revenue goal.
Why it predicts: Partners need 3-4x pipeline coverage to hit quota reliably.
Healthy coverage: 3.5-4x At risk: 2-3x (might miss quota) Critical: <2x (will miss quota)
Leading indicator 5: Rep training completion velocity
How quickly are partner reps getting certified?
Why it predicts: Fast certification = partner is serious about selling. Slow/incomplete certification = partner isn't prioritizing you.
Benchmark: 60%+ reps certified within 60 days
Track these monthly to identify problems early.
The Profitability Metrics
Partner revenue alone doesn't tell you if channel is profitable.
Metric 1: Cost to serve
Total cost of supporting partner divided by revenue they generate.
Cost components:
- Partner manager salary and overhead
- Training and enablement costs
- MDF and co-marketing investment
- Deal support and technical resources
- Tools and systems
- Incentives and spiffs
Formula: Total cost / Partner revenue = Cost to serve %
Benchmark: Cost to serve should be <30% of partner revenue
If partner generates $500K revenue but costs $200K to support (40%), they're not profitable.
Metric 2: Gross margin after partner payout
Revenue from partner deals minus partner margin paid minus COGS.
Formula: (Revenue - Partner margin - COGS) / Revenue = Net margin %
Benchmark: Net margin should be >60% for sustainable economics
If you're paying partners 30% margin and have 20% COGS, you keep 50% gross margin. Might be acceptable, but needs scrutiny.
Metric 3: Customer acquisition cost (CAC) — partner vs. direct
Total cost to acquire customers through partners vs. direct sales.
Compare:
- Partner CAC (cost to serve + margin paid)
- Direct CAC (sales team cost + marketing cost)
Partner channel should have lower CAC than direct at scale. If not, reconsider channel strategy.
Metric 4: Partner ROI
Revenue generated by partner divided by total investment in that partner.
Formula: Partner revenue / Total partner investment = ROI multiple
Benchmark: Mature partners should generate 3-5x ROI
New partner generating $100K revenue after $150K investment = 0.67x ROI (not profitable yet, but might be acceptable for first year).
The Cohort Analysis
Track partner performance by cohort (when they joined) to understand ramp patterns.
Example cohort analysis:
Q1 2024 cohort (10 partners):
- Q1: $0 revenue (onboarding)
- Q2: $50K average revenue per partner
- Q3: $120K average revenue per partner
- Q4: $180K average revenue per partner
Q2 2024 cohort (15 partners):
- Q2: $0 revenue
- Q3: $40K average revenue per partner (slower ramp than Q1 cohort)
- Q4: $90K average revenue per partner
Insights:
- Typical partner ramps to $150-200K quarterly revenue in 9-12 months
- Q2 cohort ramping slower — investigate why
- Can forecast new partner cohorts based on historical ramp patterns
Cohort analysis shows whether partner program performance is improving over time.
The Partner Health Scoring
Create an automated health score that flags at-risk partners.
Health score factors:
Green (Healthy - 80-100 points):
- Hitting quota
- Increasing pipeline
- Active deal registrations
- High win rates
- Growing quarter-over-quarter
Yellow (At Risk - 50-79 points):
- Missing quota but close (70-99%)
- Flat pipeline
- Decreasing activity levels
- Declining win rates
- Need intervention
Red (Critical - <50 points):
- Significantly missing quota (<70%)
- Declining pipeline
- Minimal activity
- Low win rates
- Likely to churn without major changes
Automated scoring lets you prioritize where to focus partner management time.
The Dashboard Design
Build partner dashboards that surface insights, not just data.
Executive dashboard (monthly review):
- Total partner revenue vs. goal
- Pipeline coverage by partner tier
- Number of partners by health score
- Top 10 partners by revenue
- Bottom 10 partners requiring attention
- Partner program ROI and profitability
Partner manager dashboard (weekly review):
- Each partner's health score
- Deal registrations this week
- Upcoming renewals or quota milestones
- Partners who need outreach
- Training completion status
- Support tickets requiring escalation
Individual partner view:
- Scorecard (capability, activity, pipeline, revenue)
- Pipeline detail and deal status
- Revenue vs. quota progress
- Certification status
- Recent activity timeline
The Reality
You can't manage what you don't measure. But measuring the wrong things creates false confidence.
Track capability (can they sell?), activity (are they trying?), pipeline (are they generating opportunities?), and revenue (are they delivering results?).
Focus on leading indicators that predict future performance. Monitor profitability to ensure channel economics work. Use cohort analysis to understand ramp patterns.
That's how you know which partners to invest in, which to help, and which to exit.